A penalty will be imposed on any person that is engaged in the interprovincial or international transportation of passengers or freight across member jurisdictions under the International Fuel Tax Agreement (IFTA) and is guilty of any of the following infractions:

• failure to file fuel tax returns regarding the fuel used for travelling through all jurisdictions that are members under the Agreement;
• failure to file returns by the prescribed deadline;
• failure to pay the balance of tax due in full.

The penalty is equal to $50 or 10% of the unpaid taxes, whichever is greater.

Note that no credit in reserve can be used to reduce the balance due on which a penalty is calculated.