CRA Has Forgiven $4 Million in Taxes Owed by Cannabis Dealers

November 28, 2024 TruthUSA

The Canadian Revenue Agency reports that it has had to forgive millions of dollars in unpaid taxes owed by cannabis dealers.

This information was revealed in response to Conservative MP Tako van Popta’s inquiries about the number of cannabis industry members who owed taxes, as first disclosed by Blacklock’s Reporter.

The CRA responded in writing to the queries in September, and this response was presented to the House of Commons on Nov. 18.

According to the CRA, over $4 million has been deemed irrecoverable from cannabis companies that are unable to pay the excise tax.

“To manage the outstanding debt effectively, the CRA may designate certain debts as uncollectible when all collection avenues have been exhausted,” stated the document. “From the introduction of the Excise Tax on cannabis until Sept. 21, 2024, a total of $4,718,514 has been written off as uncollectible.”

The CRA specified that all cannabis companies with tax debts that required write-off were located in Ontario.

Popta also inquired about the number of dealers with tax debt who applied for bankruptcy, but the CRA stated that it did not gather that information.

The Cannabis Council of Canada, representing licensed producers in the industry, claimed that marijuana businesses are burdened with high taxes, leading many to struggle. In the 2023 Budget, the government announced a shift to quarterly tax payments instead of monthly.

In 2023, the Competition Bureau conducted a thorough examination of the industry and reported that 66 percent of cannabis businesses had not paid their taxes.

The report also indicated a growing number of industry businesses falling behind in tax payments since legalization.

Source link