Want to know how to get CRA excise tax surety bonds as a licensed cannabis producer? Read this.
Part of the Canadian government’s motivation to legalize and regulate the sale of cannabis in Canada was to increase the tax base. This includes administering and enforcing a tax framework.
More specifically, Bill C-74 includes amendments to the Excise Act, 2001 which “impose duties that … generally apply to cannabis products sold for both medical and non-medical purposes. Cannabis products … include dried and fresh flowering material (flower), dried and fresh non-flowering material (trim), cannabis oils, as well as vegetative cannabis plant (seedling) and viable seeds (seeds) for home cultivation”.
As such, to apply for or renew a cannabis license under the Excise Act, applicants are required to provide a minimum of $5,000 and a maximum of $5,000,000 in security to the Canadian Revenue Agency.
Security for licensed cannabis producers can be met in a number of ways. Here are some…
- Certified Cheque
- CRA excise tax surety bond for licensed producers of cannabis
- Transferable bond issues by the government of Canada
Why choose a CRA Excise Tax Surety Bond?
Quite simply, the benefit of securing a bond through ALIGNED Insurance is that it doesn’t tie up a licensed producer’s cash/capital as CRA excise tax surety bonds for licensed producers of cannabis is relatively inexpensive.
How can licensed cannabis producers secure an appropriate surety bond?
Securing a CRA excise tax surety bond for licensed producers of cannabis is easy. Simply request one here or call an ALIGNED broker today.