Published: April 2010
Content last reviewed: April 2010
As announced in the 2013 Ontario Budget, the fuel tax exemption for biodiesel is repealed effective April 1, 2014, making biodiesel taxed in the same way as diesel fuel.
The information in this guide will help you complete the Fuel Tax Railway Return FT826. The guide also provides information about filing requirements including the time for filing a Return, penalties for filing a late Return, the required supporting schedule and payment information. The information in this guide does not replace the law found in the Fuel Tax Act and related regulations.
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Visit ontario.ca/finance (enter webpage number 2587 into the 'Find page' field at the bottom of the website) or call us at 1 866 ONT-TAXS (1 866 668-8297).
If you are registered as an Interjurisdictional Carrier or a Registered Consumer, under the Fuel Tax Act, and operating a railway in Ontario as part of a public transportation system, you must complete the Fuel Tax Railway Return FT 826 and the required schedules for the reporting period. All fuel used, whether clear or coloured, must be reported. You are required to complete a Return even if you did not have any activity during the reporting period.
You are also required, if applicable, to complete and attach to your return the following schedules:
If you require paper copies of the return or schedules contact the Ministry of Finance (ministry) at the address or telephone provided in this guide.
If you choose, you may submit your own computer produced facsimile(s) of the returns and schedules, but they must be approved by the ministry before you use them for filing a return. Please contact the ministry for computer produced facsimile approval information.
The Return, supporting schedules and remittance for any tax collectable or tax payable must be filed on or before the 25th day of the month following the last day of your reporting period.
Should your return due date fall on a day when the ministry is not open during its regular hours of business then the due date is extended to include the next business day when the ministry is open during its regular hours of business.
The penalty for late filing a Return or short/non-payment of taxes owing is equal to10% of the tax collectable or 5% of the tax payable.
You are required to keep, at your principal place of business, records and books of account as well as any other documents to verify the information in the records and books, that will enable the accurate determination of the tax collectable and payable under the Fuel Tax Act, for a period of seven years following the end of your fiscal year.
For further information regarding records retention, please refer to the Tax Information Bulletin entitled Retention/Destruction of Books and Records. Copies are available at ontario.ca/finance (enter webpage number 2217 into the 'Find page' field at the bottom of the website) or by calling the ministry at 1 866 ONT-TAXS (1 866 668-8297).
This is a unique number assigned by the ministry to each return and accompanying schedule(s) issued to a taxpayer. When communicating with the ministry, you must provide this unique Reference Number to identify a particular return/schedule(s), in addition to quoting your Identification Number if you have one (federal business number).
Please notify the ministry of any change in your name and address. When contacting the ministry, be sure to use your Identification Number found at the top left of the return. The ministry contact information is detailed below.
Personal information contained within the Fuel Tax Railway Return FT826 is collected under the authority of the Fuel Tax Act, R.S.O. 1990, c.F.35, and will be used for the purposes of the Fuel Tax Act. Questions about this information collection should be directed to:
Senior Manager, Account Management
Client Services Branch
Ministry of Finance
33 King Street West, PO Box 625,
Oshawa ON LIH 8H9
1 866 ONT-TAXS (1 866 668-8297)
Returns and payments may be filed using ONT-TAXS online at ontario.ca/finance or by mail to Ministry of Finance, 33 King St. W, PO Box 620, Oshawa, ON L1H 8E9.
Returns and payments are also accepted at ServiceOntario Centre locations on behalf of the ministry. For ServiceOntario Centre locations, hours of operation and telephone numbers, visit ontario.ca (enter webpage number 4020859 into the 'Find page' field at the bottom of the website) or call toll-free 1 888 745-8888 (TTY toll-free 1 800 268-7095).
Print your Identification Number on the back of your cheque or money order. Your cheque/money order should be made payable to the Minister of Finance.
Payments cannot be made at financial institutions.
Toll free 1 866 ONT-TAXS (1 866 668-8297)
Hours of Service: Monday to Friday, 8:30am to 5:00pm
Teletypewriter (TTY) 1 800 263-7776
Fax 905 433-5680
Ministry of Finance
33 King Street West
PO Box 625
Oshawa ON L1H 8H9
If your Legal Name, Address and Identification Number (federal business number) are preprinted, please verify the information. If the information is incorrect, make the necessary corrections on the Return. If blank, record your Legal Name, Address, and Identification Number if you have one.
Verify that the pre-printed Reporting Period (year-month-day) is correct. Indicate if there was No activity during this reporting period or if it is an Amended return by placing an X in the appropriate box.
Complete applicable schedules. See schedule for instructions and attach your completed copies.
Lines 1, 2, 3 & 4 Fuel used in railway equipment on rails in Ontario. Enter the current and previous amount(s) of clear and/or coloured fuel consumed by railway equipment in Ontario on which Ontario tax at the railway rate is due. You will calculate this amount by referring to your issues records and other source documentation.
The Return has a provision for calculating tax due at the Current Railway Tax Rate and at the Previous Railway Tax Rate. Usually, you would report all your consumption and/or sales for the reporting period at the Current Railway Tax Rate. The Previous Railway Tax Rate will be used in the event of a tax rate change during the reporting period.
Rate Change Example: Using Clear Fuel as an example, when the rate of tax on clear fuel used in railway equipment was changed from 3.95 cents per litre to the current rate of 4.5 cents per litre, assume that the total consumption and/or sales for the month was 50,000 litres of product. From your records, you calculated that consumption and/or sales at 3.95 cents per litre was 10,000 litres and 40,000 litres at the new rate.
On Line 1 you would have enter 40,000 in the first Litres box; in the Current Railway Tax Rate box 4.5 cents and in box (1) $1,800 (40,000 litres ¢s; 4.5 cents). On Line 2 you would enter 10,000 in the Litres box; in the Previous Railway Tax Rate box you would enter 3.95 cents and in box (2) you would enter $395.00 (10,000 litres ¢s; 3.95 cents).
Line 5 Tax Due before adjustments: Total of lines 1 to 4.
Line 6 Ontario tax paid on clear fuel used in railway equipment on rails: If, during the reporting period, you purchased clear fuel used in railway equipment and paid the Ontario tax at the Regular Clear Fuel Rate, enter the quantity of tax paid fuel purchased and used in railway equipment in the Litres box.
In the Regular Tax Rate box, enter the tax rate.
Multiply the number of litres used by the tax rate and enter the amount in line 6.This calculates the amount of refund on clear fuel purchased, including tax, at the regular clear fuel tax rate. If you used the fuel in railway equipment at railway rate, you are entitled to a refund on the tax rate differential between the regular clear fuel tax rate and the railway rate.
For any tax paid purchases made during this period, please attach your completed Product Purchased/Received from Non-Collectors in Ontario Schedule GT/FT5.
Note: The litres shown on line 6 of the return will not exceed the Product Purchased/Received from Non-Collectors in Ontario Schedule GT/FT5 for the current or previous reporting period. The Return is based on the fuel you actually consumed. If you did not consume the entire amount shown on your schedule then you cannot report it on the Return.
Line 7 Ontario tax paid on clear fuel used in unlicensed/auxiliary equipment: If you own unlicensed diesel powered equipment and you fueled the unlicensed diesel equipment with clear fuel on which you paid the Ontario tax at the regular clear fuel tax rate you can apply for a refund of the tax (provided you cannot use coloured fuel in the equipment) by completing this line.
Line 8 Adjustment amount: If you are making an adjustment, enter the amount in line 8 and attach your completed Adjustment Schedule GT/FT8.
Note: In Ontario, biodiesel is not taxable under FTA. If you have included litres of biodiesel or blended diesel with clear fuel in the tax calculation lines above, calculate the amount of litres of biodiesel, multiply by the current tax rate and enter the amount in line 8.
Line 9 Net Tax Due: To calculate the Net Tax Due, subtract line 6 and 7 from line 5, then add or subtract line 8. Indicate with a check mark whether this amount is a credit or if tax is due. If tax is due check the Tax Due box and this will represent the amount of your remittance that must accompany your Return. If a credit is due then check the Credit box and you will receive a refund of tax.
If you are not filing your return through ONT-TAXS online then the Return must be signed and dated by an authorized signing officer. The information contained in the return must, to the knowledge of the authorized signing officer, be true, correct and complete.
If this Return is signed by a third party (such as your accountant or solicitor) the ministry needs your authorization. A properly completed Authorizing or Cancelling a Representative form [PDF - 407 KB] must be returned to the ministry. Forms are available on the Ministry of Finance internet ontario.ca/finance (enter webpage number 113 into the 'Find page' field at the bottom of the website) or forms.
The name and title of the person signing the Return must also be printed in the space provided.