Alberta government forces oil & gas companies to pay owed taxes

The Alberta government is cracking down on oil and gas companies that have not been paying any taxes owed to municipalities.

In a statement Monday, Alberta Energy Minister Pete Guthrie issued the ministerial order under the Responsible Energy Department Act.

It states the Alberta Energy Regulator must receive evidence that “municipal taxes have been paid when approving licence transfers or new licences.”

Companies will be blocked from acquiring licences on wells or other assets if their unpaid taxes exceed the “maximum threshold allowed.”

“While most companies pay their taxes regularly and on time, there are a few delinquent companies that owe overdue property taxes,” Guthrie said.

“That is why we’re putting in place this ministerial order – to continue building on our recent work. Our goal is to reduce unpaid taxes throughout the province.”

The regulator said in a release that once the threshold has been made, companies that don’t meet it will be targeted for collection.

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Peter McLaughlin, the president of Rural Municipalities of Alberta, says this is a positive step toward holding oil and gas companies accountable.

“Although only a small number of companies avoid their property tax payment obligations, this issue has had major fiscal impacts on rural municipalities across Alberta,” McLaughlin’s statement reads.

“As 41 per cent of unpaid taxes are owed by companies that are currently operating, we are optimistic that this change will have an immediate positive impact in rural Alberta.”

Rural Municipalities Alberta has said energy companies owe the municipal districts they operate in a total of $268 million.

-With files from The Canadian Press