Tax dispute over sale of 'coloured gas' remains before the court

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Kidd Ventures Ltd. on the hook for $221,495.85 in uncollected revenue, interest and penalty, the provincial government alleges

The B.C. government has not given up on its effort to collect more than $220,000 in allegedly foregone tax revenue, interest and penalty from the sale of "coloured fuel" at a Prince George gas station.

Also known as "marked" or "dyed" fuel, it is reserved for farmers and recreational boaters and for purposes related to logging, mining, oil and gas and road building. A tax of three-cents per litre is levied by the provincial government on the fuel compared to 7.75 cents per litre for regular gas. Over the course of the next two years, an inspector selected three test months to determine compliance and concluded there was "pervasive non-compliance." The inspector estimated that KVL did not obtain the required declarations for 86 per cent of the 981,943 litres of coloured diesel sold, working out to $101,078.46 in unpaid tax, and for 72 per cent of the 1,110,378.75 litres of coloured premium sold, for a further $91,840.53 in uncollected tax.

Source: Law Daily Report (lawdailyreport.net)

 

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