Monday’s report of the Alberta Government’s so-called Property Tax Accountability Strategy Working Group had lots of big ideas about how to recover unpaid taxes “from companies that are still operating and reducing future unpaid taxes.”
Seventeen recommendations in all, according to the government’s news release, which also quoted Municipal Affairs Minister Dan Williams piously explaining that “unpaid taxes put an unfair burden on Alberta taxpayers, who end up footing the bill or seeing their services reduced.”
Seeing as there’s something like $250 million in municipal property taxes unpaid by Alberta oil and gas companies, that’s a lot of burden on the taxpayers of the province’s rural municipalities.
The working group’s big ideas include making property taxes part of the Alberta Energy Regulator’s mandate and “enabling the regulator to act faster and with stronger tools when companies fail to meet their tax obligations.” Plus, the release said, “they also call for improved data access for municipalities and increased data collection to better monitor the issue,” whatever that actually means.
But the real news, it’s said here, was Mr. Williams’ admission, and that of Energy Minister Brian Jean, that those municipalities are never going to see the money they’re owed – it’s gone with the wind, too bad, so sad, forget about it!
Companies are legally obligated to clean up the messes they’ve made, right? “We appreciate that a lot of that isn’t going to come forward, isn’t going to be paid back to the province or municipalities,” Mr. Williams told a news conference at the Rural Municipalities of Alberta’s spring convention in Edmonton on Monday. But don’t worry, the CBC reported, he’s passionate about fixing the mess.
Mr. Jean, with astonishing frankness, further explained: “What happens at the end of a life cycle of some of these oil fields or gas fields that are not producing the wealth that they used to produce, is that the leaders of those companies often strip off the value and find ways to pay what they prioritize to pay.” That explanation is so cute! One thing they don’t prioritize, obviously, is their debts, at least to the citizens of the municipalities where they used to operate.
But Mr. Jean’s comment includes another worthwhile point, it’s often the same companies that aren’t paying their taxes that also aren’t cleaning up their messes. Others agree.
“While most oil and gas property taxes are paid in full every year, unpaid taxes remain a real and persistent problem that the province is committed to addressing,” the anonymous author of the government’s press release signed off. “Alberta’s government will be reviewing the report’s recommendations and evaluating the next steps over the coming months.”
OK, then!
Surely we all understand, though, that this government is unlikely to be any more committed to making oil and gas companies of the type described by Mr. Jean pay their taxes or clean up their messes in the future than the UCP has been since its inception.
More than 20 O&G companies that exceeded Alberta’s limit on tax arrears have been allowed to acquire new wells since 2023, the Investigative Journalism Foundation reported in February.
Acknowledging this aloud, it must be noted, invites a hostile reaction on certain social media sites, including from a number of accounts that look suspiciously like bots. It would be interesting to know who’s running those.
Still, it’s fair to say that every day is Tax Freedom Day for Alberta O&G operators if they choose to operate that way, and polluter pay is not really a thing in here, and likely never will be.
And it’s quite reasonable to expect nothing is going to change in the coming months, or probably the coming years, no matter what the latest working group report or news release says.
RCMP come knocking in ‘procurement irregularities’ investigation
Last night The Globe and Mail reported that the “RCMP have executed search warrants as part of their investigation into procurement irregularities at Alberta’s health authority, a controversy that has dogged Premier Danielle Smith’s government for more than a year.”
Needless to say, this is a highly significant story that has the potential for major repercussions for the provincial government. Earlier in the day, the Globe published another major story on a dispute between two companies involved in building addiction recovery facilities for the Smith Government. It contained some pretty startling allegations made about the businessman at the centre of the long-running procurement controversy.
Frequently, when such a development breaks, Premier Smith is suddenly overcome by an irresistible urge to travel, with or without the assistance of an attentive Saudi Arabian flight crew. Unfortunately, notwithstanding the current price of oil, now is probably not a good moment for a quick trip to the capitals of the Middle East. They say Vancouver is lovely in the springtime, though, so perhaps a shorter jaunt could be arranged.
Meanwhile, I’m sorry to have to refer readers to news stories that are behind a paywall, but Alberta media for a variety of reasons have been hesitant to cover this story, leaving it to the Globe to do the heavy lifting. With luck, perhaps some un-paywalled media organization will have joined the coverage by later today.
This is a big reason why municipal property taxes in Alberta are going up. There are people who will still blame municipal leaders for this, which is false. What else do you expect from the UCP?
Unpaid local taxes have been an issue for years, so I would have hoped we would have gotten past the studying recommendations stage a long time ago, but it doesn’t seem to have been a priority for Smith and the UCP who seem preoccupied now with who is getting or not getting the order of Canada. Suspending these companies operating licences until the tax arrears were arranged to be paid would probably be a good way to get them to give it their more prompt attention, just a thought.
Stories about well connected AHS private facilities contractors do not seem to be going way and new aspects keep popping up. So yes, probably time for Smith to go on an out of province trip again to try avoid embarrassing questions for which she may not have good answers. Given all the world conflict, Vancouver might be a safer choice now. Her predecessor Kenney seemed to like it, to occasionally get away from the political heat here. However, she should probably avoid luxury plane travel paid for by someone else, particularly anyone who has private contracts with AHS. If she is hard up, maybe she can ask the Aga Khan to help if allowed under Alberta’s ethics rules. Just another thought.
Got to keep up those valuable Middle Eastern connections by accepting their hospitality. Who knows when we will need to quickly buy pain medication there again, although the pain now may be mostly political, so not sure if it works for that. Perhaps the Saudis will offer a better deal than Turkey.
Unbelievable. (well, believable.). The capture of the provincial government by O&G is not a surprise in Alberta, but this level of corruption is.
Not only are these bad actors getting away without paying taxes, but now in the budget $46m is going to profitable oil companies to clean up their pollution. It is no longer “Polluters Pay”, but “Polluters Get Paid” by this UCP government. Totally outrageous.
https://www.eralberta.ca/media-releases/alberta-invests-46-million-to-advance-tailings-and-mine-water-technologies-across-the-oil-sands/
Yup. For all Albertans who don’t like sales tax, carbon tax, or any tax, you are getting hosed by your own (purportedly) tax-averse government. But hey, at least it’s not Trudeau.
Why is it that whenever I see a photo of Dan Williams, I immediately think – ‘Mr. Bean!!!!!’
The difference being one is funny in a way that makes you laugh and the other is funny in a way that makes you cringe.
These issues — municipal tax and reclamation liabilities, health care corruption and incompetence — are not amenable to the UCP government’s usual South Park strategy: “Blame Canada!” Expect creative contortions from Smith and her PostMedia cheerleaders, and Dave should put a Polymarket bet on his disappearing-premier prediction.
So why do these Rural Albertan Morons continue to keep these Reformers in power if they don’t like how they are being treated? “ We Only Vote Conservative” one told me a few years ago that’s how stupid they are, isn’t it? They aren’t even smart enough to figure out that there is nothing conservative about them.
“to better monitor the issue”.
“Alberta’s government will be reviewing the report’s recommendations and evaluating the next steps over the coming months.”
Three of the most used, and least meaningful words in political ‘discourse’ of my lifetime” monitor, reviewing, evaluating.
Translation: absolutely nothing will ever be considered, never mind acted upon.
Rural people and rural municipal governing groups are left out to dry in the wind during a rain storm.
UCP MLAs actually, deliberately TOLD THE TRUTH?! Surely, the End Times are Nigh!
Regulatory capture has been described as “the process and effect of regulated entities or entire industries systematically redirecting regulation away from the public interest and toward the private, special interests of regulated parties themselves.”, or the way businessmen are successful in their various conspiracies against the public is when they are given protection by the necessary government regulation, with their considerable input, of course.
That is a factual reality in the Alberta petro-state, along with the political/corporate revolving door culture and a Premier that is little more than an acting VP of communications/lobbyist for the oil and gas industry.
Where we are now is the stage of laying the groundwork for the seemingly inevitable next step and announcement predicated upon what is now both publicly known and publicly admitted by the revolving door oil and gas industry political representatives, that is,
“But the real news, it’s said here, was Mr. Williams’ admission, and that of Energy Minister Brian Jean, that those municipalities are never going to see the money they’re owed – it’s gone with the wind, too bad, so sad, forget about it!”
“At the recent Rural Municipalities of Alberta convention, she says Alberta Premier Danielle Smith told attendees that those millions in unpaid taxes are unlikely to ever be collected.”
https://thenarwhal.ca/alberta-energy-regulator-ignores-order/
“When oil and gas companies are unable, or unwilling, to pay their land rent, the provincial government will pay it for them. More than 99% of the time, the government never gets its money back”
https://thenarwhal.ca/alberta-oil-and-gas-unpaid-rent-2024/
What is the seemingly inevitable next step, i.e., “there is no alternative”, in a long process of both habituating and psychologically preparing an easily misled and constantly bamboozled public?
Answer: More private personal profit and more publicly socialized losses. See for example,
“So wait, is this on top of the billions of dollars in oil and gas well cleanup fees? The regulator’s own internal figures, obtained by the media in 2018, show the problem could exceed $100 billion — $260 billion including the oilsands and pipelines — and the number has been continually revised upward since more accurate monitoring of cleanup costs began.”
https://thenarwhal.ca/alberta-surface-lease-explainer/
Sure Dani, fly right into an active war zone to meet your oil buddies.
Pretty sure Iran ain’t sparing the American Oiligarchs at this point, but have at ’em, hoss.
Just to let ya know Dani, if anything untoward happens? We ain’t rescuing you.
The Tyee (no paywall) has a report today written by Charles Russnell covering the same scandal reported in the Globe and Mail.
Without question a really good article. A must read for all that are following the corrupt care scandal that now extends way beyond Tylenol and PPE. I can see why the RCMP are looking into this one, as they should.
https://archive.ph/2026.03.18-154244/https://www.theglobeandmail.com/canada/article-alberta-construction-company-alleges-sam-mraiche-played-hidden-role-in/ A little bird sent me this. Keeping tabs on this fella is like playing a game of whackamole!
Looks like they didn’t get around to replacing the RCMP with a provincial police force of gangsters errr loyalists I mean !
I have to admit I was a bit taken aback that Yankee Doodle Dani was flying around on a jet owned by one of the most dictatorial regimes in the world, headed by a man who, checks notes, beheaded his cousin in an international embassy, and was a close confidant of JE.
Has anyone checked the Epstein files for links to the Calgary school of public policy?
Can’t be bothered to scroll through the predictable comments!
I will forever say ; that Alberta is a petro state ; owned and governed by Tarsands!
When the Petro industry convinced Canada that Tarsands/Bitumen was actually oil the writing was on the wall and the die set!
Now if only the farmers can convince everyone a field of rye is a field of whiskey then we will be ok ?
TB
Come on Smitty, pick up the tab for oily pals, reimburse all the municipalities, it is the least you could do to show you have Albertans in part of your bought and paid for heart. We all know your oil puppeteers are gonna grease you well when you get turfed.
After reading this, I am not surprised. This has been going on for years and just like Health Care and Education and … nothing gets resolved or taken serious even when they are lucky with oil at $100 dollars a barrel. After all reducing taxes to the oil companies as well as the royalties are always their priority.
MAGA mentality added to this incompetency and of course we, the low level beings will pay for everything and keep smiling and voting them in. I am glad I am old and soon to be part of the other side of this misery we are building for ourselves and our descendants. I am ashamed of being part of this society.
Just insanely irresponsible: “More than 20 O&G companies that exceeded Alberta’s limit on tax arrears have been allowed to acquire new wells since 2023, the Investigative Journalism Foundation reported in February.” The least – the absolute very least – that the provincial government could do and should do to show fiscal responsibility and respect for the law (and taxpayers) is to withhold approval of new projects for such companies until arrears are paid. The next thing they can do (instead of shrugging their shoulders) is to sue the bastards to get the money that is owing. They could also, I suppose, put a halt to extraction right now on projects already approved for companies that still owe arrears, pending payment. There doesn’t seem to a lack of options, only a lack of integrity and political will.
The utter uselessness of the O&G owned uselessness clown party……corporate welfare socialism is strong with this polital farce……pot holes and underfunded public institutions while money flows up……is this the trickle down economics that the cons always push?????