Canopy Growth Corp (WEED)

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Canada’s unpaid cannabis taxes soar 72% to almost CA$300 million

How can someone that is betting their savings on a Company that cant even pay their Bills???

A growing number of Canadian cannabis producers continue to rack up tax debt, which could lead to “a meaningful number” of companies going out of business if they’re unable to make those payments, according to the latest tax data and industry analysts.

Federally licensed cannabis producers owed the Canada Revenue Agency (CRA) 273.4 million Canadian dollars ($202 million) as of Dec. 29, 2023, marking a 72% increase compared to the figure from about one year earlier, MJBizDaily has learned.

The number of delinquent companies has grown sharply in recent years.

Roughly 259 licensees were behind on their tax commitments as of Dec. 29, the CRA told MJBizDaily.

The tax levies could be for excise duty, Canada’s Harmonized Sales Tax, payroll tax or corporate income tax.

According to CRA data, cannabis businesses behind on their tax commitments in other years were:

12 in March 2019.
33 as of March 2020.
68 in March 2021.
141 companies in March 2022.
213 as of March 2023.
The snowballing situation might have been what prompted the CRA to embark on an unprecedented crackdown.

Last week, citing provincial and industry sources, MJBizDaily reported that the CRA had ordered at least three government-owned wholesalers to garnish payments from licensed producers that were delinquent on their tax commitments.

The three wholesalers – in British Columbia, Ontario and Quebec – account for almost three-quarters of all legal cannabis sales in Canada.

The CRA wouldn’t confirm those garnishment orders, saying the disclosure of such information could compromise confidentiality provisions of Canada’s taxation laws.

The tax-collection agency also declined to say how many companies were affected.

Beena Goldenberg, CEO of Toronto-headquartered cannabis operator Organigram Holdings, said the excise tax rate needs to be lower.

But she also said the industry needs a level playing field to continue to mature.

“We all want players in this industry to succeed, and a level playing field is critical to the development of a successful and sustainable industry in the long term,” she said in an interview with MJBizDaily.

https://mjbizdaily.com/canada-unpaid-cannabis-taxes-soar-to-almost-ca300-million/