Published: December 2000
Content last reviewed: September 2009
Please note that the following forms, referenced in Ontario Tax Bulletin FT/GT 4-2000, have been replaced as noted:
Previous Form Name (referenced in Bulletin)
Current Form Name(s)
|Application for Refund of Fuel Tax
FT 850 (pg.1)
|PTO Summary; and PTO 2|
|Application for Refund of Gasoline Tax GT 257 (pg.1)||PTO Summary; and PTO 1|
This bulletin outlines the procedure for claiming a refund of the tax paid on clear fuel and gasoline used in Ontario to operate the power takeoff equipment of an interjurisdictional carrier licenced under IFTA.
The Fuel Tax Act and the Gasoline Tax Act provide for refunds of the tax paid on the clear fuel and gasoline (both referred to as "fuel") used in Ontario to operate the power takeoff (PTO) equipment of a motor vehicle, provided that the vehicle is not used for the transportation of passengers or for recreational purposes. In cases where a fuel meter measures the quantity of fuel supplied to PTO equipment, readings from this meter are used to calculate the tax refund amount. Otherwise, refund claimants calculate their PTO tax refund on the basis of Ministry approved allowances derived from equipment manufacturers' fuel consumption specifications.
Prior to January 1, 2001, PTO refund allowances to IFTA licenced carriers were limited by the amount of fuel purchased in Ontario as a percentage of the total amount of fuel purchased by the carrier during the claim period.
Effective January 1, 2001, PTO refund allowances to IFTA licenced carriers are limited by the proportion of distance travelled in Ontario to the total distance travelled during the claim period, whether or not the claimant has purchased fuel in Ontario. All PTO tax refund claims submitted after December 31, 2000 and all unpaid PTO tax refund claims submitted before January 1, 2001 will be considered under this new policy.
In order for a claimant to be eligible for a PTO tax refund, the following conditions apply:
In order to claim a refund, claimants must:
Important: If a refund claimant misrepresents a material fact on or in connection with a refund application or on a supporting invoice, the Minister of Finance may, in addition to denying all or any part of a refund claimed through the use of the application, impose a penalty equal to the refund denied.
IFTA licenced carriers may calculate their PTO tax refund as follows:
For the reporting period October 1, 1999 to December 31, 1999, an IFTA licenced carrier reports a total distance of 10,000 km in all jurisdictions, of which 2000 km represents the distance travelled in Ontario. While in Ontario, the carrier uses fuel to operate PTO equipment. The tax rate on the fuel used is 14.3 cents per litre. The carrier calculates the Ontario PTO tax refund as follows:
PTO tax refund claims must be made within four years of the date when the tax for which a refund is sought was paid.
For information on Ministry-approved PTO allowances or for additional information in respect of PTO tax refunds, contact:
Ministry of Finance
Client Services Branch
33 King Street West
Oshawa ON L1H 8H9