Agreement - Order in Council 786/2018

G

gb123

Well-Known Member
TIME TO PAY MOFOS!!:razz:
Its fun to think they think it will go this way EH! ;)


Coordinated Cannabis Taxation Agreement
BETWEEN:

The Government of Canada (referred to in this Agreement as “Canada”), as represented by the Minister of Finance of Canada,

AND:

The Government of Ontario (referred to in this Agreement as the “Province”), as represented by the Minister of Finance of Ontario,

TOGETHER referred to in this Agreement as the “Parties”.

THE PARTIES AGREE AS FOLLOWS:

Part I - Interpretation
  1. The following definitions apply in this Agreement.
    “additional duty”, in respect of a coordinated province,
    means the duty in respect of the coordinated province imposed under the Excise Act, 2001 on cannabis products in addition to the federal cannabis duty.
    “additional duty rate”, at any time in respect of a coordinated province,
    means a rate of duty for, or in relation to, the coordinated province that is applicable, at that time, to determine and calculate the additional duty in respect of the coordinated province.
    “Agreement” means this coordinated cannabis taxation agreement,
    entered into by Canada with the Province under Part III.2 of the Federal-Provincial Fiscal Arrangements Act, including the Annex attached to it, and all instruments amending or restating it, or any successor agreement to it.
    “business day”
    means a day that is neither a Saturday nor a day defined as a holiday within the preamble to the definition of that word in subsection 35(1) of the Interpretation Act, R.S.C. 1985, c. I-21, as amended from time to time.
    “commencement day”
    has the same meaning as in section 152 of the Cannabis Act, being Bill C-45, introduced in the 1st session of the 42nd Parliament and entitled An Act respecting cannabis and to amend the Controlled Drugs and Substances Act, the Criminal Code and other Acts.
    “coordinated cannabis duty”
    means the federal cannabis duty and the additional duty in respect of each coordinated province.
    “coordinated province”, at any time,
    means a province that has entered into a coordinated cannabis taxation agreement with Canada under Part III.2 of the Federal-Provincial Fiscal Arrangements Act and applicable provincial legislation, if any, and that, at that time, is a province in respect of which additional duties are applicable.
    “Customs Act”
    means the Customs Act, R.S.C. 1985, c. 1 (2nd Supp.), as amended from time to time.
    “Excise Act, 2001”
    means the Excise Act, 2001, S.C. 2002, c. 22, as amended from time to time.
    “federal cannabis duty”
    means the duty payable in respect of cannabis products under the Excise Act, 2001 that applies in respect of cannabis products intended for consumption, use or sale in a province irrespective of whether the province is a coordinated province.
    “Federal-Provincial Fiscal Arrangements Act”
    means the Federal-Provincial Fiscal Arrangements Act, R.S.C. 1985, c. F-8, as amended from time to time.
    “fiscal year”
    means a period of 12 months beginning on April 1st.
    “province”
    has the same meaning as in subsection 35(1) of the Interpretation Act, R.S.C. 1985, c. I-21, as amended from time to time.
    “Provincial Sales Tax”
    in respect of a province means a retail sales tax that applies to a broad base of property or services, or a similar transaction tax that applies to a broad base of property or services, in respect of the province, including the new harmonized value-added tax system as defined in subsection 277.1(1) of the Excise Tax Act, R.S.C. 1985, c. E-15, as amended from time to time.
  2. Unless otherwise specified, words or expressions used in this Agreement have the same meaning as in the Excise Act, 2001. Where a word is defined in this Agreement or that Act, other parts of speech and grammatical forms of the same word have corresponding meanings.
  3. The Annex that is attached to this Agreement forms an integral part of this Agreement.
Part II - Implementation
  1. Subject to the requisite legislative approvals, the Parties agree:
    1. to work collaboratively and in a timely manner towards the imposition of the additional duty in respect of the Province;
    2. that Canada will make best efforts to introduce, on or before commencement day, the necessary legislative amendments to give effect to the Agreement;
    3. that the additional duty in respect of the Province will be implemented by Canada on commencement day; and
    4. that the systems necessary for the Minister of National Revenue to effectively administer and enforce the additional duty in respect of the Province, and the systems necessary for the collection contemplated by clause 33 at Canadian international borders by the Minister of Public Safety and Emergency Preparedness of Canada, will be in place as of commencement day.
  2. Unless otherwise mutually agreed upon between the Parties and subject to the terms and conditions of this Agreement,
    1. the Province will make a public announcement, as early as possible before commencement day, in respect of the Province’s agreement to the implementation by Canada of the additional duty in respect of the Province as of commencement day;
    2. the Province will, following the public announcement referred to in paragraph (a), table at the earliest opportunity in the Province’s legislature an instrument, in respect of the Province’s agreement to the implementation by Canada of the additional duty in respect of the Province, requesting a timely vote by the Province’s legislature to occur before June 1, 2018; and
    3. if the Province provides Canada with the proposed text of the public announcement referred to in paragraph (a) or the instrument referred to in paragraph (b), Canada agrees to review that proposed text in a timely manner.
Part III - Additional Duty Rate
  1. The Parties agree that the additional duty will be determined as the greater of a flat-rate duty and an ad valorem duty, as provided for under the Excise Act, 2001.
  2. The Parties agree that the federal cannabis duty rates for the flat-rate duty applicable to a cannabis product will be the following as of commencement day:
    1. $0.25 per gram of flowering material included in the cannabis product or used in the production of the cannabis product;
    2. $0.075 per gram of non-flowering material included in the cannabis product or used in the production of the cannabis product;
    3. $0.25 per viable seed included in the cannabis product or used in the production of the cannabis product; and
    4. $0.25 per vegetative cannabis plant included in the cannabis product or used in the production of the cannabis product.
  3. The Parties agree that the federal cannabis duty rate for the ad valorem duty applicable to a cannabis product will be 2.5% of the dutiable amount as of commencement day.
  4. The Parties agree that the additional duty rates in respect of the Province for the flat-rate duty applicable to a cannabis product will be the following as of commencement day:
    1. $0.75 per gram of flowering material included in the cannabis product or used in the production of the cannabis product;
    2. $0.225 per gram of non-flowering material included in the cannabis product or used in the production of the cannabis product;
    3. $0.75 per viable seed included in the cannabis product or used in the production of the cannabis product; and
    4. $0.75 per vegetative cannabis plant included in the cannabis product or used in the production of the cannabis product.
  5. The Parties agree that the additional duty rate in respect of the Province for the ad valorem duty applicable to a cannabis product will be 7.5% of the dutiable amount as of commencement day.
  6. Despite clauses 6, 9 and 10, the Parties agree that, in recognition of the difference between the general Provincial Sales Tax rate in respect of the Province and the highest prevailing general Provincial Sales Tax rate in Canada or of the absence of a Provincial Sales Tax in respect of the Province, the additional duty in respect of the Province will be the total of the amount that would be the additional duty as determined in the absence of this clause and 3.9% of the dutiable amount as of commencement day.
  7. If any cannabis products are not subject to the Provincial Sales Tax in respect of the Province at the general Provincial Sales Tax rate, clause 11 does not apply.
  8. The additional duty rates in respect of the Province set out in clauses 9 and 10 shall remain at the same fixed proportion to the corresponding federal cannabis duty rates and any change by Canada to a federal cannabis duty rate shall result in a proportional change to the corresponding additional duty rate set out in clause 9 or 10.
  9. If, effective on a particular day, the general Provincial Sales Tax rate in respect of the Province changes, the highest prevailing general Provincial Sales Tax rate in Canada changes or the federal cannabis duty rates change, the additional duty rate set out in clause 11 in respect of the Province shall be recalculated by Canada using the same methodology originally used to determine that rate and shall be amended accordingly, effective on, or as soon as practical (as determined by Canada) after, the particular day.
  10. If the Province distributes cannabis products at the wholesale or retail level or uses Crown corporations or agents to do so, the Parties agree that margins and mark-ups shall be reasonable and shall only be applied to cover operating costs and capital expenses and to generate a normal rate of return comparable to what would be expected in the private sector.
  11. [Intentionally omitted]
  12. The Province agrees to take, throughout the term of this Agreement, all actions necessary to give effect to the conditions related to margins and mark-ups set out in clause 15.
 
bigmanc

bigmanc

Well-Known Member
This just drove prices a little higher, 75cents on clone and seed...wonder what a clone would go for on the micro level also 75cents on items with cannabis
 
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