Ottawa extends consultation on potential elimination of deferred cash tickets

The federal government is extending the comment period for its proposal to potentially eliminate the deferred cash ticket option for grain sales.

The department of finance, on Tuesday, announced the consultation period that was originally scheduled to end May 24th will remain open beyond seeding season, until July 24.

When delivering a listed grain (such as wheat, oats, barley, rye, flaxseed, or canola), producers have long had the option of asking a licensed elevator operator to issue a deferred cash purchase ticket, allowing income from the delivery to be reported in the following year. It’s a tool used by many farmers to manage cash flow for tax purposes and their grain sales timing.

The change was proposed in the federal budget back in March, with the finance department noting that “over time, changes in the economy have made a number of provisions in Canada’s tax statutes less relevant than when they were first introduced.”

“It is for this reason that Budget 2017 launched a consultation on the ongoing utility, and potential elimination, of the income tax deferral…”

In an informal poll on RealAgriculture, 88 percent of respondents said they use deferred cash purchase tickets.

Comments to the federal government can be submitted via email to [email protected]

Related: Poll: Do You Use Deferred Cash Tickets To Manage Taxes?

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