Government of Canada / Gouvernement du Canada
Symbol of the Government of Canada

Search

Cannabis Fees Order (SOR/2018-198)

Full Document:  

Regulations are current to 2020-05-17 and last amended on 2020-01-22. Previous Versions

Marginal note:Statement of cannabis revenue

  •  (1) The holder of one or more licences set out in column 1 of Schedule 2 with respect to the same site must, no later than April 30 of a fiscal year, submit to the Minister a statement of the cannabis revenue for the preceding fiscal year with respect to those licences, including the amount received from the sale of cannabis and the amount paid for the purchase of cannabis that were used to determine the cannabis revenue.

  • Marginal note:Reconciliation

    (2) The holder must pay the following fee, not later than September 30 following the fiscal year during which the licence with the earliest effective date was issued with respect to the same site, if the amount is positive:

    • (a) if the person holds only one licence set out in column 1 of Schedule 2 with respect to the site, an amount equal to the difference between the fee determined in accordance with column 2 of Schedule 2 with respect to the licence, based on the cannabis revenue set out in the statement of cannabis revenue for the fiscal year during which the licence was issued, for the applicable licence set out in column 1 and the fee paid under paragraph 7(1)(a); or

    • (b) if the person holds more than one licence set out in column 1 of Schedule 2 with respect to the site,

      • (i) in the case where one of the licences is a licence for sale for medical purposes, an amount equal to the difference between the lowest applicable fee determined in accordance with column 2 of Schedule 2 with respect to the licences that the person holds, based on the cannabis revenue set out in the statement of cannabis revenue for the fiscal year during which the licence with the earliest effective date was issued and the fee paid under subparagraph 7(1)(b)(i).

      • (ii) in all other cases, an amount equal to the difference between the highest applicable fee determined in accordance with column 2 of Schedule 2 with respect to the licences that the person holds, based on the cannabis revenue set out in the statement and the fee paid under subparagraph 7(1)(b)(ii).

Marginal note:Accounting standard for statements

 Statements that are submitted to the Minister for the purposes of this Order must be prepared in writing in accordance with the generally accepted accounting principles established by the Accounting Standards Board, the primary source of which is, in Canada, the CPA Canada Handbook — Accounting, and must be accompanied by a written document signed by the person responsible for the financial affairs of the holder of the licence certifying that the records were prepared in accordance with the standards.

Marginal note:Exemptions — sale for medical purposes

  •  (1) The holder of a licence for sale for medical purposes and any other licence set out in column 1 of Schedule 2 , if any, is not required to pay the applicable fee referred to in subsection 7(1) and paragraphs 7(2)(a) and (b) and (3)(a) and (b) and subsection 8(2) for a fiscal year and for the same site if

    • (a) all the cannabis sold during the applicable fiscal year under those licences is sold in Canada to a person that is a client or a named responsible adult or to which an exemption has been granted under section 140 of the Act for a medical purpose and in relation to the cannabis or class of cannabis that is sold;

    • (b) the holder signs and submits to the Minister a written document indicating that the holder intends to sell all cannabis during the applicable fiscal year only in Canada to a person that is a client or a named responsible adult or to which an exemption has been granted under section 140 of the Act for a medical purpose and in relation to the cannabis or class of cannabis that is sold

      • (i) in the case of the fee referred to in subsection 7(1), within 30 days after the earliest effective date of the licences, and

      • (ii) in any other case, not later than April 30 of every fiscal year; and

    • (c) the holder submits to the Minister, not later than April 30 following the applicable fiscal year, a statement of the cannabis revenue for the applicable fiscal year with respect to those licences, including the amount received from the sale of cannabis in Canada and the amount paid for the purchase of cannabis that were used to determine the cannabis revenue, accompanied by a written document confirming that all those sales were made to a person that was, at the time of the sale, a client or a named responsible adult or to which an exemption had been, at the time of the sale, granted under section 140 of the Act for a medical purpose and in relation to the cannabis or class of cannabis that was sold.

  • Marginal note:Exemption — separate sites

    (2) The holder of a licence for sale for medical purposes with respect to a site and any other licence set out in column 1 of Schedule 2 with respect to another site is not required to pay a fee referred to in subsection 7(1) and paragraphs 7(2)(a) and (b) and (3)(a) and (b) and subsection 8(2) for a fiscal year and for any of the licences that the person holds if

    • (a) the holder does not hold any other licence set out in column 1 with respect to the site referred to in the licence for sale for medical purposes; and

    • (b) the holder meets the conditions set out in paragraphs (1)(a) to (c).

  • SOR/2020-8, s. 1

Marginal note:Retention of documents and information

 The holder of a licence set out in column 1 of Schedule 2 must retain the following for not less than seven years after the day on which they are prepared and in a manner that will enable an audit to be made in a timely manner:

  • (a) documents or information stating the amount received from the sale of cannabis, the amount paid for the purchase of cannabis and the name of the person from which cannabis was purchased; and

  • (b) if section 10 applies to the holder, documents or information confirming that all sales of cannabis under the licence were made in Canada to a person that was, at the time of the sale, a client or a named responsible adult or to which an exemption had been, at the time of the sale, granted under section 140 of the Act for a medical purpose and in relation to the cannabis or class of cannabis that was sold.

  • SOR/2020-8, s. 2(E)

Marginal note:Coming into Force

 This Order comes into force on October 17, 2018.

 
Date modified: