In B.C.’s forestry sector, logging and trucking operators are facing increased scrutiny over how they use and report fuel, particularly coloured (marked) fuel intended for off-highway operations. While Motor Fuel Tax rules haven’t changed, recent enforcement has prompted many businesses to reassess long-standing practices — especially in mixed-use scenarios where trucks operate mostly on forest roads but travel short distances on public highways. Even minimal highway use can trigger reassessments, with auditors sometimes applying the full tax to entire fuel purchases.

These assessments can be substantial, often covering multiple years and reaching hundreds of thousands of dollars, with payment required upfront even during an appeal. Forestry contractors in the Interior and northern B.C. appear to be seeing increased audit activity. The best defence is detailed documentation — including purchase records, route maps, and usage logs — that clearly shows how and where fuel is used. Businesses can reduce risk by switching to clear fuel (and applying for off-highway rebates) or proactively disclosing past ineligible use. In a tightening enforcement climate, early action and organized records can mean the difference between a manageable adjustment and a costly reassessment.