Federal carbon tax will be imposed in Alberta on Jan 1, 2020. Due to Alberta repealing the provincial carbon tax the Federal Government has imposed the federal carbon tax, effective Jan 1, 2020.
The Federal Government has announced there is relief for certain sectors and individuals including farmers if certain criteria is met. Farmers will qualify for an exemption if they meet all the criteria, please review the full listing here:
- Relief for farmers from the fuel charge for fuels used in tractors, trucks and other farm machinery.
- The relief is provided upfront through the use of exemption certificates, when certain conditions are met.
- A registered distributor can generally deliver, without the fuel charge applying, gasoline or light fuel oil (e.g., diesel) to a farmer at a farm, if the fuel is for use exclusively in the operation of eligible farming machinery and all or substantially all of the fuel is for use in the course of eligible farming activities. Farmers do not need to be registered for the purposes of this relief.
- Eligible farming machinery means property that is primarily used for the purposes of farming and that is a farm truck or tractor, a vehicle not licensed to be operated on a public road, or an industrial machine or stationary or portable engine.
The form L402 – Fuel charge exemption certificate for Farmers can be picked up at our office or downloaded below
Farmers must provide an exemption certificate to their fuel supplier and retain a copy of the certificate for themselves. All suppliers will require the exemption certificate at time of sale: otherwise the federal fuel charge will be applied. Customers are advised to provide their exemption certificates by December 31, 2019 or before their next fuel purchase.
The carbon tax varies by product, view a full listing here:
For additional tax planning tips or assistance with any of the above, contact Gregory Harriman & Associates LLP by email at This email address is being protected from spambots. You need JavaScript enabled to view it. or by phone at 1-403-934-3176.
Disclaimer
The information in this publication is current as of December 17, 2020.
This publication has been carefully prepared, but it has been written in general terms and should be seen as broad guidance only. The publication cannot be relied upon to cover specific situations and you should not act, or refrain from acting, upon the information contained therein without obtaining specific professional advice. Please contact Gregory, Harriman & Associates LLP to discuss these matters in the context of your particular circumstances. Gregory, Harriman & Associates LLP, its partners, employees and agents do not accept or assume any liability or duty of care for any loss arising from any action taken or not taken by anyone in reliance on the information in this publication or for any decision based on it.