What the New Canadian Fuel Charge Means for Trucking Companies

Ata committee 1

Effective April 1, 2019, the Government of Canada will be enforcing a fuel charge for the provinces of Manitoba, New Brunswick, Ontario, and Saskatchewan. This new fuel charge was introduced as part of the Greenhouse Gas Pollution Pricing Act (the Act) which will be administered by the Canada Revenue Agency (CRA) to put a price on carbon pollution which plays an important role for Canada’s climate action plan. In addition, effective July 1, 2019, the territories of Nunavut and Yukon will enforce the fuel charge as well. These territories are considered “listed provinces” and the fuel charge will not apply on fuel used outside of these jurisdictions.

Who is Required?

Every interjurisdictional road carrier who is in a listed province will be required to register as a road carrier with the CRA. Those include vehicles who use the following fuels:

  • Gasoline
  • Light fuel oil (diesel)
  • Marketable natural gas
  • Propane

Generally, any road carrier that provides commercial transportation of individuals or goods by road from one province to another or from a location that is outside of Canada to another location in Canada, and the road carrier travels to or through a listed province, will be required to register. Those who conduct business in a listed province might have to register for one or more of the following:

  • Distributer
  • Importer
  • Emitter
  • User of fuel
  • User of combustible waste
  • Air carrier
  • Specified air carrier
  • Marine carrier
  • Specified marine carrier
  • Rail carrier
  • Specified rail carrier
  • Road carrier

To determine if you’re required to register, learn more by visiting the Fuel Charge Notice FCN1, Registration Under the Greenhouse Gas Polluting Pricing Act.

Failing to register when required under the Act could result in a $2,000 penalty. If you’re ready to register, click here!

Reporting to the CRA

Similar to International Fuel Tax Association (IFTA) requirements, road carriers will be required to file a quarterly return to specify the amount of fuel used within each listed province. Purchases of fuel within a listed province will be inclusive of the charge. Consequently, fuel that is purchased at a retail outlet in a listed province but used outside the listed province may be eligible for a rebate.

Getting Your Rebates

A road carrier may be entitled to claim a rebate depending on the business activities conducted in a listed province over a quarter, which would be filed with the quarterly return. The return, and the payment where required, is due by the end of the month following the end of the quarter. For example, if the quarterly return is for April-June then it would be due by the end of July.

Are you an employer and still have questions regarding employment screening?

DISA can help! Get answers directly from DISA’s subject matter experts with ‘Ask DISA’

Visit www.askdisa.com to ask your questions today.

About DISA Global Solutions

Founded in 1986, DISA is the industry-leading provider of employee screening and compliance services. Headquartered in Houston, with more than 35 offices throughout the U.S. and Canada, DISA’s comprehensive scope of services includes drug and alcohol testing, background check, occupational health, and transportation compliance. DISA assists employers in making informed staffing decisions while building a culture of safety in their workplace.

DISA Global Solutions aims to provide accurate and informative content for educational purposes only and does not constitute legal advice. The reader retains full responsibility for the use of the information contained herein. Always consult with a professional or legal expert.