April 15, 2024

Courtroom paperwork present the RMWB is accusing Sunshine Oilsands of owing almost $25 million in unpaid taxes. The corporate denies the allegations, which haven’t been confirmed in courtroom.

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The Regional Municipality of Wooden Buffalo says it’s owed $38.8 million in taxes from eight oilsands firms.

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For privateness causes, a municipal spokesperson couldn’t identify which firms are accusing of owing taxes. Nonetheless, a lawsuit from the RMWB alleges Sunshine Oilsands owes the municipality almost $25 million. The corporate denies the allegations, which haven’t been confirmed in courtroom.

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The cash owed to the municipality has grown lately. On the finish of 2022, the RMWB claimed roughly $30 million in unpaid property taxes from oilsands firms. In 2021, it was $24.6 million.

This progress has occurred even after council forgave greater than $4 million in tax debt owed by an bancrupt oilsands firm on a facility northeast of Fort McMurray. In January, Greenfire Sources Working Corp. informed council they needed to purchase the location, however the excellent tax invoice was too giant for them. With out aid, they might not purchase the property.

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Council was informed if nobody buys the property, the power would go to the Alberta authorities’s orphan nicely program and the municipality would get no income from the location.

Oil and gasoline firms in Alberta owe rural municipalities roughly $251.8 million in unpaid property taxes, based on the Rural Municipalities of Alberta (RMA).

The RMA  say power firms are benefiting from what it calls the Alberta Vitality Regulator’s (AER) “hands-off strategy to regulation,” which it says permits sure firms with no plans to develop to keep away from paying property taxes.

The RMA mentioned the AER has taken a “hands-off strategy to regulation” and McLauchlin accused the regulator of being a “cheerleader” as an alternative of a regulator.

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“Firms proceed to revenue from Alberta’s sources whereas ignoring their group obligations and funnelling earnings to executives and shareholders,” Paul McLauchlin, president of the RMA, mentioned in an announcement.

The RMA desires a phased strategy to imposing property tax payments that may lead to compensation timelines linked to an organization’s degree of threat.

The AER in the meantime says candidates for a nicely license can’t owe greater than $20,000 in municipal taxes as of final Might. The regulator says it’s working with native governments to establish which oil firms owe property taxes. Nonetheless, the regulator provides municipalities are chargeable for municipal taxes.

In an announcement to Postmedia, Vitality Minister Brian Jean’s workplace mentioned it’ll think about the RMA’s strategies.

“Alberta’s authorities will think about the RMA’s strategies and proceed working with them on methods to resolve this ongoing difficulty. Most firms pay their taxes, however we perceive why municipalities are pissed off by overdue property taxes owed by some oil and gasoline firms,” Jean’s workplace wrote.

-with reporting from Matt Scace

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