Consumer Taxation Branch Notice

August 1998

NOTICE TO PETROLEUM AGENTS

Refunds of Tax Paid on Fuel Used for Pumping Petroleum Products

Under the Motor Fuel Tax Act, petroleum agents are eligible for a partial refund of tax paid on fuel consumed in a stationary motor vehicle while pumping petroleum products. The following guidelines are provided to assist petroleum agents in submitting claims for this refund.

GENERAL REFUND PROVISIONS

A partial refund is available only for fuel that is consumed in a motor vehicle while the vehicle is stationary and during the time that the main engine of the vehicle is operated for the purpose of pumping petroleum products. The refund amount is equal to the difference between the clear and coloured fuel tax rates for fuel consumed for this purpose. Refunds must be claimed within six years from the date the tax was paid on the fuel.

Applicants are required to complete an Application for Refund of Fuel Tax form (FIN440), including the certification, and supporting documentation and schedule as outlined below. Forms are available from any Consumer Taxation Branch or Government Agents office. The completed documentation should be mailed to the Refund Section, Consumer Taxation Branch at the address indicated on the form.

COMPLETING THE REFUND APPLICATION FORM

Both sides of the Application for Refund of Fuel Tax form must be completed by the applicant as follows.

  • On the front of the form, list fuel purchased for consumption in delivery vehicles. This list may be in summary form, for example, monthly totals. Fuel used in other vehicles must be excluded from the claim. Supporting documentation, such as invoices, must be provided with the form to establish payment of tax on fuel used in delivery vehicles. The Certification Section at the bottom of the form must be completed to certify that all fuel listed on the form was consumed in the vehicles listed on the reverse of the form.
  • On the reverse of the form, complete the delivery truck(s) identification section. For claims covering a period of more than one year, and for all claims where any of the vehicles were not owned and operated for the full period of the claim, include the date the vehicle was purchased, sold, or traded-in. For each vehicle listed, include the diameter of the hose used with that vehicle.

PREPARATION OF SUPPORTING SCHEDULE

Each refund claim must be accompanied by a schedule providing the following details. A sample schedule is attached.

  • Type of petroleum product delivered.
  • Total volume(s) of fuel delivered. Sales or delivery reports must be provided with the claim to support the summary. Provide a breakdown by truck, fuel type, hose diameter, or other factor, as appropriate. Clearly indicate how totals were accumulated, for example, adding machine tapes, cross references and explanations.
  • Amount of fuel delivered by gravity dump. (Fuel consumed in delivery of fuel by gravity dump does not qualify for a refund.) Where deliveries include gravity dumps, adjustments to the schedules must be clearly indicated and reconciled.
  • Amount of fuel delivered by pumping.
  • Pumping rate used. Pumping rates vary according to fuel product, diameter of hose, temperature, and efficiency of the truck engine and power take-off. It is, therefore, necessary to clearly indicate how the rate was determined, how variables, such as hose sizes, were accounted for, any assumptions made, and any tests performed to verify the rates.
  • Calculation to convert volume into hours pumped.
  • Fuel consumption rate used. According to Detroit Diesel and Cummins Diesel manufacturers, the fuel consumption rate per hour of pumping can vary from 2.5 to 5 litres per hour at 800-1100 RPM. The branch uses the following guideline rates:
    • pre-1991 trucks 4.00 litres/hour

      post-1991 trucks 3.25 litres/hour

Claims using higher rates must be supported with additional documentation to substantiate the rate used.

  • Calculation to convert hours into fuel consumed while pumping petroleum products.
  • On-board truck computer systems which measure fuel consumption, while the vehicle is stationary and operating the power take-off, may also be considered as part of the supporting schedule.

FURTHER INFORMATION

For further information regarding motor fuel tax refunds, please contact the Consumer Taxation Branch Information Desk at (604) 660-4524. Alternatively, contact your nearest Consumer Taxation Branch office. Branch locations are listed in the blue pages of your telephone book.

Motor Fuel Tax Act, Regulation 4(c)

Sample of How to Complete a Claim for
a Refund for Pumping of Petroleum Products

Type of petroleum product delivered Total volume delivered Volume delivered by gravity dump Volume delivered by pumping (B minus C) Pumping rates 1 Hours pumped (D divided by E) Fuel consumption rate (litres per hour 2) Litres of fuel consumed while pumping petroleum
unleaded fuel - 1.5 " hose 1,400,000 230,000 1,170,000 18,000 65.00 3.75 243.75
diesel - 3" hose 800,000 80,000 720,000 36,000 20.00 3.25 65.00
               
               
               
               
               
               
               
               
               
               
               
               
Totals 2,200,000 310,000 1,890,000        
       
   Total fuel consumed while pumping petroleum products
308.75
       
  X refundable tax rate/litre
0.085
            Refund Amount $ 26.24

1. Explanation and details must be provided to justify your pumping rate.        

2. See Notice to Petroleum Agents for guidelines. 

Consumer Taxation Branch

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