Guide for Completing the Application for Refund Summary and Clear Fuel Schedule 2 PRL - Loss of Product/Overpayment of Tax

Published: March 2010
Content last reviewed: March 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As announced in the 2013 Ontario Budget, the fuel tax exemption for biodiesel is repealed effective April 1, 2014, making biodiesel taxed in the same way as diesel fuel.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 Loss of Product/Overpayment of Tax Clear Fuel Schedule 2 - PRL [PDF - 232 KB]. The guide also provides information about supporting documents, records retention, time limit for applying for a refund, direct bank deposit, and will help you to determine whether you are eligible to claim a refund. The information in this guide is provided as a guideline only and does not replace the law found in the Fuel Tax Act and related regulations.

Who May Use This Form?

The refund is available to retailers and wholesalers in Ontario who paid fuel tax on product that was lost, destroyed, stolen, contaminated or used to flush a fuel dispensing system on a tank truck where the fuel became contaminated.

Supporting Documents

The refund application – Summary and Schedule must be accompanied by the following supporting documents.

  • A copy of an insurance company's settlement offer or written confirmation confirming settlement of any claim.
  • Acceptable proof that the tax amount claimed was remitted to your supplier or directly to the Ministry of Finance (ministry). A copy of a cancelled cheque, a letter from the supplier stating that payment was made in full or a receipted purchase invoices are evidence of the payment of the tax and the date of payment.
  • A copy of the incident report prepared by a Motor Fuels and Tobacco Tax inspector, if the refund is for contamination of clear fuel by coloured fuel.
  • A copy of any police report for a loss due to theft.
  • A copy of any fire marshal's report for a loss due to fire.
  • Any other information that may be required by the ministry to verify the loss, destruction, theft or contamination.

Overpayment of Tax - Ultra Low Sulphur Diesel (ULSD) Flushing

If your refund application claim is for ULSD clear fuel used in flushing include the following.

  • a detailed listing of all ULSD flushes done that lists:
    • date
    • truck number
    • quantity of the ULSD used in flushing
    • description of how the ULSD was used for the flush (e.g. ULSD flushed into a previous delivery of coloured fuel);
    • proof that an amount on account of tax was paid (e.g., purchase invoices)

For any flush which exceeds 300 litres, provide proof that such volume was required to prevent sulphur contamination, including a written description of the circumstances and equipment details such as hose length, diameter, and dispensing system capacity.

Claims under $500

If your annual claim total is less than $500, you are not required to send the supporting documentation to the ministry with your refund application. However, you must retain the supporting documentation noted in the above section, for a period of seven years and provide the information to the ministry upon request.

Change of Information (Preprinted Application Only)

When completing a preprinted form please make any required corrections by hand on the refund application before submitting.

Tax Rates

The Ontario tax rates are found on the tax rate table provided on the Application for Refund Loss of Product (PRL) Overpayment of Tax.

When completing the Application for Refund online the Ontario tax rates are automatically provided on the schedules.

Identification Number

Provide your federal business number or your MFTT reference number as your Identification No. on the Application. When communicating with the ministry, include your identification number on all correspondence and forms.

Direct Bank Deposit

For your refund to be deposited directly into your bank account, please provide a cheque marked VOID showing your name and address and attach it to your refund application or mail it to the Ministry of Finance with a letter requesting direct deposit. Remember to quote your Identification Number on your letter.

If you wish to cancel direct deposit, please send a letter to the Ministry of Finance requesting a cancellation.

Records Retention and Time Limit

The refund application must be received by the ministry, within four years from the date of payment of the tax. All records, documents and receipts pertaining to your tax refund claim must be kept for seven years for audit purposes.

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 or by calling the ministry at 1 866 ONT-TAXS (1 866 668-8297).

Freedom of Information

Personal information contained within the Application for Refund 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  L1H 8H9

Mailing Address and Enquiries

Ministry of Finance
Motor Fuels and Tobacco Tax
33 King Street West, PO Box 625
Oshawa ON  L1H 8H9

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

Website ontario.ca/finance

PLEASE NOTE:

  1. An application for refund includes the Application for Refund Summary – Page 2 form and an Application for Refund Schedule(s).
  2. Separate applications must be submitted for each incident of loss and each type of loss (Stolen, Destroyed, Contaminated, Loss (e.g. vehicle accident) or for ULSD flushing claims.
  3. When completing the refund application online, you will be automatically taken from the application summary to the schedule(s) and back. The calculation of your entries and carry forward of totals are usually performed automatically.
  4. When completing the refund application by hand, carry forward the totals from the schedule(s) to the Application for Refund Summary – page 2 form.
  5. The Application for Refund Summary – page 2 form must be signed. Please mail the completed application to the ministry.

DETAILED INSTRUCTIONS

Step 1 Completing the Upper Portion of the Application for Refund - Summary

  • When completing the application manually, provide your legal name and address along with your identification number. If preprinted, verify information and make the necessary corrections on the application.
  • When completing the application online, provide your legal name and address along with your identification number and this information will be carried forward throughout the application process.
  • Select the Fuel – clear fuel box for the Product type.
  • Below the Schedule # Name, select box 2 as the Schedule to be completed. When completing the application online you will be taken to the schedule automatically.

Step 2 Completing Application for Refund - Schedule Loss of Product (PRL) – Clear Fuel Schedule 2

  • When completing the application manually, provide your Identification number. If preprinted, verify information and make the necessary corrections on the application.
  • When completing the application online, your identification number will be carried forward from the Application of Refund – Summary Page 2.

Are Biodiesel blend purchases included in this calculation? If so, indicate the percentage of Biodiesel in the blend and the number of litres of Biodiesel excluded in the calculation of refundable litres. Include a separate sheet that shows the calculations.

Step 3 Application for Refund – Schedule Loss of Product (PRL) – Clear Fuel Schedule 2

[A] Loss Of Product/overpayment of tax

  • A separate schedule must be completed for each incident/date of loss of product or for ULSD flushing claims.
  • Enter the date of the loss, except for ULSD flushing claims.
  • Check the type of loss/overpayment. If selecting 'ULSD flushing' enter the dates of the first and last flush being claimed.
  • If the claim is for fuel flushing, enter the number of flushes which are included in the claim period.

Step 4 Application for Refund - Schedule Loss of Product (PRL) – Clear Fuel Schedule 2

[B] Refund Calculation

Complete lines 1 to 4.

Group the invoices by date that fall within the same tax rate period. If there is a tax rate change, complete a separate refund claim form.

Line 1. Litres Purchased
The total clear fuel volume purchased during the claim period. The invoices which accounting for tax being claimed on product lost due to theft, destruction, contamination or loss or for ULSD flushing are included in this total.

Line 2. Total Refundable Litres
Enter the total litres lost for the date of loss that you have recorded in section [A] on the Application for Refund Schedule.

Line 3. Ontario Tax Rate
Enter the applicable Ontario tax rate per litre. This is the tax rate in effect for the invoices supporting the refund claim. Refer to tax rate table found on the Application for Refund – Page 1.

Line 4. Refund Amount
Multiply Total Refundable Litres (line 2) by Ontario tax rate (line 3). Carry forward this Refund Amount to Line B of the Application for Refund Summary – Page 2. When completing this application online the amount will be calculated and transferred automatically.

When you have completed Schedule 1 return to the Application for Refund – Summary.

Step 5 Completing the Lower Portion of the Application for Refund - Summary

  • When completing the application manually, carry forward the refund amount calculated on Line 4 – Refund amount ($) of the Application for Refund – Schedule to line B of the Application for Refund – Summary.
  • On line A Invoice dates, enter the date of the first invoice and the date of the last invoice that are being submitted in support of the refund claim.
  • When completing the application online print 2 copies of the Application for Refund – Summary and Application for Refund – Schedule.
  • Complete the Certification section of the Application for Refund – Summary including an authorized signature and date.
  • Mail one completed Application for Refund – Summary and Schedule along with all supporting documentation to the ministry at the address shown at the top of the Application for Refund – Summary Loss of Product (PRL) / Overpayment of Tax
  • Maintain one copy for your records.

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