MJ Biz: Canada’s taxman getting more aggressive with cannabis excise debts

MJ Biz report this week

The Canadian federal government’s revenue service is ramping up pressure on cannabis producers with outstanding excise debt, MJBizDaily has learned, adding more pressure on companies that already are struggling financially.

The Canada Revenue Agency (CRA) is said to be raising the possibility of garnishment, liens on plant property and equipment, and legal action.

Excise payment debts have soared in recent years, as cannabis producers suffer from a combination of industry-wide overproduction, which is driving down prices, and high taxes at various levels of government.

Cannabis producers pay the excise duties, which are levied on a variety of products.

Roughly two-thirds of cannabis businesses regulated by the federal government had an excise deficit owed to the CRA as of September 2022 – the halfway point for the federal government’s fiscal year ended March 31, 2023.

In total, 172 licensed producers had a deficit totaling nearly 100 million Canadian dollars ($72.4 million).

https://mjbizdaily.com/canadas-taxman-targets-cannabis-excise-debts/?utm_medium=email&utm_source=newsletter&utm_campaign=INTL_20230519_NEWS_Weekly

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