Self-Assessor Carbon Levy Remitter Return INSTRUCTION GUIDE Climate Leadership Act Pursuant to the Climate Leadership Act, the Alberta carbon levy is effective January 1, 2017. Who Must Complete This Return Effective January 1, 2017 at 12:01 a.m., the Climate Leadership Act (the Act) and the Climate Leadership Regulation (the Regulation), which are administered by Alberta Treasury Board and Finance, Tax and Revenue Administration (TRA) came into force. Under the Act and Regulation, fuel means a substance as set out below: Aviation gas means a substance suitable to power an aircraft that is not propelled by a turbine; Aviation jet fuel means a substance suitable to power an aircraft that is propelled by a turbine; Bunker fuel means a crude oil distillate having a viscosity of greater than 5.5 centistokes at 40 C; Butane means, in addition to its normal scientific meaning, a mixture mainly of butanes that ordinarily may contain some propane or pentanes plus; Coal coke means a solid carbonaceous residue derived from low-ash, low-sulfur bituminous coal from which the volatile constituents were driven off by baking in an oven with the result that the fixed carbon and residual ash are fused together; Coke oven gas means gas that is recovered from the carbonization of coal at high temperatures in a coke oven for the production of coal coke and processed to be suitable as a fuel; Diesel means a substance, including renewable diesel, that is sold or represented as diesel suitable for generating power by means of a diesel engine, but does not include locomotive diesel or heating distillate oil; Ethane means, in addition to its normal scientific meaning, a mixture mainly of ethane, which may ordinarily include some methane or propane; Gas liquids means a mixture of 2 or more of ethane, propane, butane or pentanes plus, whether in a gaseous or liquid form, that is obtained from the processing of natural gas or crude oil, and of which the exact composition is unknown; Gasoline means a substance, including renewable gasoline, that is sold or represented as JAN 2017 Page 1 of 10
gasoline suitable for use in a spark-ignition engine; Heating distillate oil means a diesel fuel used in a furnace, boiler or open flame burner or any other diesel not subject to either federal or provincial renewable fuel standards; Heavy fuel oil means a substance that is a distillate or a residual of crude oil and that has a viscosity of greater than 14 centistokes at 50 C; High heat value coal means bituminous coal and any other coal with a heating value greater than 27 000 kj per kg normalized to a prescribed moisture content; Kerosene means a light petroleum distillate that meets the requirements of National Standard of Canada CAN/CGSB 3.3 99, Kerosene, as amended from time to time, but does not include aviation fuel; Locomotive diesel means diesel fuel that is used to operate a railway locomotive or to provide heat or light to railway cars attached to a railway locomotive; Low heat value coal means sub-bituminous coal and any other coal with a heating value up to and including 27 000 kj per kg normalized to a prescribed moisture content; Methanol has its normal scientific meaning but does not include methanol produced from biomass; Naphtha means a refined or partially refined petroleum fraction with an approximate boiling range between 50 C and 204 C; Natural gas means natural gas that has been processed to meet the specifications for pipeline transport and sale, whether or not the natural gas contains gas liquids, but does not include refinery gas, or non-marketable gas or raw gas; Pentanes plus / condensate means a mixture mainly of pentanes and heavier hydrocarbons that ordinarily may contain some butanes and may be contaminated with sulphur and that is obtained from the production or processing of raw gas, condensate or crude oil; Propane means, in addition to its normal scientific meaning, a mixture of mainly propane that ordinarily may contain some ethane or butanes; Raw gas means natural gas that does not meet the specifications for pipeline transport and sale, and is not moved to a gas processing plant from a gas battery, compressor station or oil battery, or from a gas processing plant to a transmission pipeline; Refinery gas means any form or mixture of fuel gases produced in oil refineries or upgraders as JAN 2017 Page 2 of 10
a result of distillation, cracking, reforming or other oil refining or upgrading processes; Refinery petroleum coke means a carbonaceous solid produced from oil refinery coke units or other cracking processes, including coking, fluid coking, flexicoking and delayed coking, and includes coke referred to as green coke or fuel grade coke; Upgrader petroleum coke means a carbonaceous solid produced from oil or bitumen upgrader coker units or other cracking processes, including coking, fluid coking, flexicoking and delayed coking. This means that after 12:01 a.m. on January 1, a person that purchases fuel exempt of the carbon levy based on an exemption, such as the provision at the time of purchase of a carbon levy exemption certificate or other prescribed evidence, but subsequently uses the fuel or a portion of the fuel for a non-exempt purpose must complete the Self-Assessor Carbon Levy Remitter Return on a monthly basis, as required. This return is available in TRACS. TRACS is a secure online system for TRA corporate and commodity taxpayers, claimants and filers to conveniently conduct business with TRA. The Self-Assessor Carbon Levy Remitter return must be submitted through TRACS and the related carbon levy payable remitted to TRA no later than 28 days after the end of the month the fuel is used for non-exempt purposes. Further information on the Carbon Levy Self-Assessor can be found in the following information circulars. CL-1 - Overview of Carbon Levy on Fuel CL-AV-1 - Aviation Fuels Registration, Payable, Filing and Remittance CL-OF-2 - Other Fuels Payable, Filing and Remittance CL-NG-2 - Natural Gas Payable, Filing and Remittance CL-T-2 - Transportation Fuels Payable, Filing and Remittance Further information on TRACS can be found on TRA s website at www.finance.alberta.ca/tracs/index.html. JAN 2017 Page 3 of 10
Completing the Return The following steps and screen shots will assist you with completing the Carbon Levy Remitter Locomotive Fuel User Return: Step 1 of 4: Period End (Image 1) 1. Select the period end from the drop-down box. 2. Once completed, select Next. *Please note, your Account Number and Legal Name will populate when you log into your account. You are registered for these fuel types. Image 1: This is how the screen will appear for step 1 of the remitter return. JAN 2017 Page 4 of 10
Step 2 of 4: Fuel Reporting and Adjustments (Image 2) 1. Select the box in line 050 if there is not a fuel volume to report for this period for a specific type of fuel. 2. On line 290 report volumes of fuel acquired without carbon levy and subsequently used or sold for a non-exempt purpose. 3. Line 510 indicates the carbon levy rate. 4. On line 550, line 290 is multiplied by line 510 and will be visible on the review page. 5. On line 698: Enter the net total of any other monetary adjustments for the period that are not reflected in line 290. Enter rebrands in monetary amounts, rebrands from should be negative and rebrands to should be positive. Rebrands should only be reported using this return where they result in a carbon levy payable because the product being rebranded to has a higher carbon levy rate. In circumstances where the product being rebranded to has a lower carbon levy rate, a separate claim can be filed. 6. On line 699 enter a text description for the adjustment being claimed on line 698. 7. Line 750 is the sum of line 550 plus line 698 and will populate on the review page. 8. Select Review on the bottom left side of the page. JAN 2017 Page 5 of 10
Image 2: This is how the screen will appear for step 2 of the remitter return. JAN 2017 Page 6 of 10
Step 3 of 4: Review (Image 3) 1. Verify that all of the information entered is accurate. 2. Line 750 indicates the carbon levy payable for each fuel type. 3. The total amount of carbon levy payable is shown on Line 860. 4. After the information has been verified, select Submit. Image 3: This is how the screen will appear for step 3 of the remitter return. JAN 2017 Page 7 of 10
Step 4 of 4: Confirmation (Image 4) 1. Your Remitter Return has now been successfully submitted. 2. Print a copy of the summary sheet for your records. The summary cannot be retrieved once you leave the summary screen. 3. The return must be submitted to TRA by the 28th day of the month following the period end. JAN 2017 Page 8 of 10
Image 4: This is how the screen will appear for step 4 of the remitter return. JAN 2017 Page 9 of 10
Payment There are several options for remitting the carbon levy payment to TRA including: pay online using electronic payment through your financial institution (Government Tax Payment and Filing Service); or pay by mail, courier or in person for cheques and money orders (payable to the Government of Alberta). For more information on making a payment to TRA, please see: http://www.finance.alberta.ca/publications/tax_rebates/making-payments.html. TRA must receive the payment by the 28 th day of the month following the period end. If you require further assistance with filing this return, contact us at: Phone: 780-644-4300 (long distance within Alberta, call 310-0000, then enter 780-644-4300) Email: tra.carbonlevy@gov.ab.ca Fax: 780-644-4144 JAN 2017 Page 10 of 10