Insurance Business Canada | How to get a CRA Excise Tax Distillery Bond
Breaking ground on a new business venture? Growing your distillery? Much like the increasing popularity of craft beers, Canadian consumers are increasingly interested in pursuing and trying craft spirits and the Canadian market is growing. Canada has rich tradition of distilling excellence. Regardless of their size, distilleries are excellent drivers of economic growth.
Across the Canadian economy, distilleries involve and help fuel numerous other sectors including:
- And more…
However, opening and operating a distillery isn’t an easy or simple process.
As you are well aware, there are numerous steps and many questions to be answered along the way. One such questions is where can I get a CRA excise tax distillery bond in Canada?
Thankfully ALIGNED Insurance can help easily answer your questions about CRA excise tax distillery bonds as well as issue a CRA excise tax bond for your distillery quickly and easily.
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Why Do I Need A CRA Excise Tax Distillery Bond In Canada?
The productions of alcoholic beverages is a highly regulated industry in Canada
The Excise Act, 2001 (the “Act”) requires a person to obtain a spirits licence in order to produce or package spirits. This memorandum provides an overview of the obligations and entitlements of spirits licensees.
In order to secure the required license to produce or package spirits capital or a CRA excise tax distillery bond needs to be provided per the below requirements.
“13. A person applying for or renewing a spirits licence is required to provide and maintain security in a form satisfactory to the Canada Revenue Agency (CRA). The amount of security required for a spirits licence is not less than $5,000 and not more than $2 million. It must be sufficient to ensure payment of all amounts for which the licensee is or will be responsible under the Act.
For information on security, refer to the following Excise Duty Memoranda:
- Security Requirements for Licensees,
- Surety Bonds and
- EDM2.2.4, Approved Financial Institutions and Acceptable Bonding Companies.”
ALIGNED business insurance experts work with each client to understand individual risks and line up the best possible coverage solutions. We work hard to give our customers across Canada both peace of mind as well as protection from commercial risk exposures. Our team will work with you to understand the details of your business and unique circumstances.
More reasons why ALIGNED stands out as the insurance business Canada choice
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And here are just a few examples why businesses decide to work with us:
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- No sales people. The ALIGNED Advocate that you initially deal with will always be accessible to you and part of your service team.
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