and Revenue Administration
Fuel Tax Agreement (IFTA)
Information Circular IFTA-5R2
||February 13, 2012
||Alberta Treasury Board and Finance, Tax
and Revenue Administration
|For more information:
IFTA-5R2 / February 2012
ALBERTA FUEL TAX ACT
NOTE: This information circular is intended to explain the International Fuel Tax Agreement Articles of Agreement and relevant legislation, and to provide specific information. Every effort has been made to ensure the contents are accurate. However, if a discrepancy should occur in the interpretation between this information circular and the articles of agreement or legislation, the articles of agreement and legislation take precedence.
This information circular covers the following topics:
- The purpose of an IFTA audit is to verify fuel purchases and distances
travelled as reported on form AT2059, Alberta "IFTA Quarterly Tax Return". Alberta Treasury Board and Finance, Tax
and Revenue Administration (TRA), audits Alberta IFTA licensees on behalf of all member jurisdictions.
- In each five-year period, TRA audits at least 15 per cent
of Alberta IFTA licensees. Any Alberta IFTA licensee
may be selected for audit.
- Prior to conducting an IFTA audit, an auditor will contact the carrier to
arrange an acceptable date to begin the audit. At that time, the auditor indicates the
period to be audited and the records to be reviewed. To confirm the audit date, the
auditor sends a follow-up letter confirming the audit date, periods to be audited,
and record requirements. At least 30 days prior to conducting the audit, the auditor sends another follow-up letter to the carrier confirming the audit date, periods to be audited, and record requirements. When an auditor is required to travel outside of Alberta to review operational records not located or not made available in Alberta, the auditor's travel expenses are billed to the carrier on
completion of the audit.
- At the beginning of the audit, the auditor holds an opening conference with the carrier to discuss
the carrier's operations, reporting methods, audit and sampling procedures, and records to be reviewed, which may difer from those requested initially. As the audit
progresses, there is open communication between the auditor and the carrier. An exit conference is held with the carrier to
explain the preliminary findings, recommendaions for ongoing compliance and the right to object.
- TRA notifies the carrier
by letter of the audit findings. From the date of the notice of reassessment, the carrier has 30 days to
make payment and 90 days to object to a reassessment (See IFTA-4,
Administration, "Objections and Appeals", paragraphs 16 to
19 for more information).
- Any refund due will be issued after any outstanding tax liabilities
have been satisfied.
- TRA submits audit reports to all
member jurisdictions. While it is not common practice, a carrier's audit findings may
be re-examined by any member jurisdiction,
if the audit report raises questions. A member jurisdiction
may, at its own expense, re-audit a carrier after notifying the base
jurisdiction and the carrier of reasonable cause for the re-audit. Such
re-examination by a member jurisdiction must be based exclusively on
the audit sample period used by the base jurisdiction in conducting