International Fuel Tax Agreement (IFTA)

A buyer of a trucking company that runs across provincial or border lines will find IFTA in the file. Alberta describes it as an agreement that enables uniform collection and distribution of fuel taxes paid by motor carriers travelling in multiple jurisdictions. Saskatchewan defines the base jurisdiction as the province or state where you plate and insure your qualified motor vehicle under the International Registration Plan and maintain the operational control and records for the vehicle.

Licence, decals and returns

Saskatchewan’s bulletin describes an IFTA licence and decals for qualified motor vehicles, and says that a carrier files one consolidated fuel tax return with its base jurisdiction instead of separate returns for every jurisdiction. Alberta says a carrier registered there must submit returns to Alberta’s Tax and Revenue Administration on a quarterly basis, reporting fuel purchased and distance travelled for all its IFTA vehicles, and that licences renew with new decals each year. Alberta and Saskatchewan each publish their own guidance, so check the forms and deadlines with the carrier’s base jurisdiction.

What to ask in a deal

• Whether the IFTA licence is current, in whose name it is held, and where the base jurisdiction is.
• Copies of the quarterly returns, and whether any balance is owing.
• Whether the base jurisdiction has audited the carrier, and with what result.
• How the licence is handled on a sale; see what to check before buying a trucking company and the International Registration Plan.