Cannabis Businesses are heavily taxed. What happens to that tax if the product is stolen?
During this pandemic and the protest that are taking place, many businesses have suffered losses due to break-ins or destruction in their businesses. As a Cannabis Business Owner, you may have already paid taxes on the merchandise that is for sale in your store, and that merchandise was either stolen or destroyed. Is it possible to recover any of those taxes?
What are some of those taxes? Cultivation Tax is collected once it passed testing and moved into the market. If the product is stolen, there is no relief from paying Cultivation Tax.
Excise Tax, on the other hand, may not be due since the product was stolen, however, if the retailer paid the tax and the product was stolen then a request for a refund can then be made to the distributor. This requires lots of documentation and the ability to track and trace the product. This is why it is important to keep accurate books to ensure you have all of this information available when filing your claim or refund.
If you have been in any of these situations or would like to discuss the best strategies available for your Cannabis Business, schedule a free consultation today.
