In July 2013, the government adopted the Marihuana for
Medical Purposes Regulations (the MMPR),
superseding the 2001 regulations on the same subject matter. The
MMPR became fully implemented on March 31, 2014, dramatically
changing the rules of supply of medical marihuana, from a cottage
industry in which approved patients grow their own or buy from
small producers, to a free-enterprise system with no limits on the
number the large-scale growers charging what the market will bear.
It is expected that the new regime will create a
private industry eventually worth some $1.3 billion in sales
annually with perhaps up to half a million customers. This industry
may potentially grow even bigger if one day recreational marihuana
becomes legal, as Liberal Leader Justin Trudeau calls for its
The market participants clearly see the growth potential in this
area. According to some news reports, Health Canada has been
swamped with more than 1,100 applications from firms interested in
commercial production and distribution of medical marihuana to
thousands of Canadians who use it for medical purposes. While the
majority of the applicants are small private companies, some of the
larger licensees such as Aphria Inc., Bedrocan Cannabis Corp., Mettrum Health
Co. and OrganiGram Holdings Inc.have gone public to
raise capital for their medical marihuana business. Others may
follow suit if their applications get approved by Health Canada and
business grows as expected. The industry may also see some mergers
and acquisitions activity in the future.
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Under the Income Tax Act, the Employment Insurance Act, and the Excise Tax Act, a director of a corporation is jointly and severally liable for a corporation's failure to deduct and remit source deductions or GST.
Under the Income Tax Act, the Employment Insurance Act, the Canada Pension Plan Act and the Excise Tax Act, a director of a corporation is jointly and severally liable for a corporation's failure to deduct and remit source deductions.
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