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ARTICLE · 26 JANUARY 2026

GST/HST On Alberta TIER Emission Offsets And Credits

Bennett Jones LLP
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The consequences of improperly charging GST/HST on sales of Alberta TIER emission offsets, emission performance credits (EPCs) and sequestration credits can be severe...

CanadaTax
John (Jay) A. Winters
John (Jay) A. Winters
Patrick Maguire
Patrick Maguire
Mark Powell
Mark Powell
Hennadiy Kutsenko
Hennadiy Kutsenko
David Wainer
David Wainer
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The consequences of improperly charging GST/HST on sales of Alberta TIER emission offsets, emission performance credits (EPCs) and sequestration credits can be severe—particularly for purchasers. The Canada Revenue Agency (CRA) has recently taken a position that, in addition to EPCs and sequestration credits, emission offsets should also be treated as "emission allowances", which differs from how many contracting parties have addressed the issue. Those who transact, or who have previously transacted, in TIER credits and offsets (and particularly emission offsets) should contact Bennett Jones to revisit their commercial agreements and discuss ways to protect themselves against negative tax assessments in respect of historical transactions and for advice on best practices for future contracts.

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