The amendment EC2025-424 to the Summary Proceedings Act Ticket Regulations introduce changes to Part 28 of Schedule 2, relating specifically to the enforcement of the Gasoline Tax Act in Prince Edward Island. This update revokes the previous Part 28 and replaces it with a revised section that clearly lists specific offences under the Gasoline Tax Act alongside the corresponding penalties applicable for out-of-court settlements. The regulation aims to improve the process of ticket issuance and enforcement for violations associated with gasoline, aviation fuel, and diesel taxes, thereby ensuring better compliance with tax obligations and supporting provincial revenue collection.

Under the new Part 28, a series of offences are identified, each linked to particular sections of the Gasoline Tax Act and carrying a uniform penalty of $250 for out-of-court settlements. The offences include a purchaser’s failure to pay tax on gasoline, aviation fuel, or diesel, as well as consumers failing to pay taxes on these fuels. Also included are violations such as selling, delivering, using, or consuming gasoline, aviation fuel, or diesel without the tax being paid. The regulation addresses the misuse of tax-exempt gasoline or diesel, particularly where a purchaser either uses or permits the use of exempt fuel for unauthorized purposes or fails to report such use to the Commissioner as required. Additional offences cover permit-related violations, such as the use of marked fuel for prohibited purposes by permit holders, or the purchase, use, or consumption of fuel by individuals who lack the necessary permits.

The $250 penalty for each listed offence reflects a standardized measure intended to convey the seriousness of compliance with fuel tax regulations while maintaining fairness by offering a fixed fine that can be promptly paid to resolve violations. This serves to discourage infractions without resorting immediately to more costly or protracted legal proceedings, striking a balance between enforcement and administrative practicality. Additionally, the clear association of offences with specific statutory sections improves transparency for those subject to the Gasoline Tax Act, making it easier for individuals and businesses to understand their obligations and the consequences of non-compliance.

The amendment also underlines the importance of proper reporting and permits in the context of tax-exempt fuel usage. It is a crucial mechanism to prevent abuse of exemptions designed for particular uses, ensuring that tax exemptions are not exploited for unauthorized purposes. By mandating reporting to the Commissioner and setting penalties for failures in this regard, the regulation improves oversight and supports the integrity of the tax system. Permit holders are similarly held accountable for the use of marked fuel, ensuring that the controls on such specialized fuel are strictly enforced.

The regulation is aimed at increasing the transparency and fairness by providing a consistent penalty framework while protecting the public interest through diligent oversight of fuel tax obligations. This amendment contributes to the objective of maintaining an equitable and efficient tax system within the province, encouraging lawful behavior among purchasers, consumers, and permit holders of gasoline, aviation fuel, and diesel.

Prince Edward Island (424/2025) May 24, 2025
Disclaimer: Insights are for informational purposes only and do not reflect RRI’s official position or constitute legal opinion.