Audits

Audits under the Petroleum and Natural Gas Royalty and Freehold Production Tax Regulation

The Mineral, Oil and Gas Revenue Branch is responsible for the administration of royalties and tax under various provincial statutes, including the Petroleum and Natural Gas Royalty and Freehold Production Regulation (opens in new window). To ensure this happens in accordance with the legislation, we routinely conduct audits of taxpayers.

What is an audit?

An audit is a formal examination of a taxpayer's financial records to ensure taxes have been collected, remitted or paid as required. An audit will identify any areas where this may have been done incorrectly.

Who gets audited?

Any owner of oil or gas production, including businesses large and small, can be audited. Royalty or tax payers may be chosen based on a special audit project, legislated program, risk, or referral from another audit.

What happens during an audit?

If you have been selected for an audit, you can expect us to follow these steps:

• Before the audit, we will make contact with you if we need to meet and/or have access to your records.
• At the start of the audit, we will review the audit process and Taxpayer Fairness and Service Code rights at your place of business or representative's office.
• During the audit, we will review your records and be willing to discuss issues of interpretation that arise from the audit.
• When the audit is complete, we will review and explain the results, notify you if an amount is owed, and make you aware of your options if you disagree with the results. If needed, you will be given a reasonable time period to review the results before an assessment is finalized.
• If you provide additional information after the audit, we will review it and determine if an adjustment is needed.

If you disagree with the results of an audit, and/or with the resulting Notice of Assessment, you have the right to appeal. Please see our Appeals page for more information.