Frequently Asked Questions about unverifiable losses — Fuel Tax and Gasoline Tax
Is there a method to recover taxes paid on fuel or gasoline losses that cannot be accounted for?
An unverifiable loss may exist where an amount of fuel or gasoline cannot be accounted for by collectors registered with the Ministry of Finance.
Available inventory is the amount of fuel that must be accounted for. It is the total opening fuel or gasoline inventory plus additions to inventory during a selected period, less the closing inventory. A person’s unverifiable loss is that portion of the available inventory which cannot be shown, to the satisfaction of the Minister of Finance, to have been sold, lost, stolen, destroyed, contaminated, consumed or distributed.
Thresholds for acceptable losses have been prescribed. Any loss of fuel or gasoline which exceeds the applicable threshold is an excess loss and a penalty may be assessed.
The prescribed threshold for:
- an unverifiable loss of fuel is 0.125% (one-eighth of one percent)
- an unverifiable loss of gasoline is 0.25% (one-quarter of one percent).