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CARBON TAX REGISTRATION

DON’T LET THE CRA FINE YOU FOR SOMETHING YOU WERE UNAWARE OF

Carriers who travel between provinces will need to register with the (CRA) Canada Revenue Agency by April 1st of 2019 as part of the federal carbon pricing tax.

MANDATORY REGISTRATION

Under subsection 63(1), a person is required to be registered as a road carrier in respect of a type of fuel that is a qualifying motive fuel if the person uses fuel of that type in a specified commercial vehicle in a listed province unless the person is, or is required to be, registered as a distributor, a specified air carrier, an air carrier, a specified marine carrier, a marine carrier, a specified rail carrier or a rail carrier, in respect of that type of fuel.

A SPECIFIED COMMERCIAL VEHICLE IS DEFINED IN SECTION 3 AS “A VEHICLE:

  • that is used to provide commercial transportation of individuals or goods by road

from one province to another province, or

from a particular location to another location if one location is in Canada and one location is outside Canada;

  • that has two axles and a gross vehicle weight exceeding 11,797 kg,

  • has three or more axles regardless of weight, or when combined with the trailer with which it is used, has a gross vehicle weight exceeding 11,797 kg; and

  • that is not a recreational vehicle, including a motor home, bus or pickup truck with attached camper, if used solely for a particular individual’s personal use or enjoyment or the personal use or enjoyment of any other individual at the particular individual’s expense.”

Under section 126, a person that is required to be registered as a road carrier but does not apply for registration as and when required is liable to pay a penalty of $2,000.

TIMING OF REGISTRATION

A person that is required to be registered as a road carrier in respect of a type of fuel must apply for registration before the later of:

 

  • April 1, 2019, for Manitoba, New Brunswick, Ontario and Saskatchewan or July 1, 2019, for Yukon and Nunavut; and the day on which the person first uses fuel of that type in a specified commercial vehicle in a listed province.

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