Finance is not going forward with changes to the cash-purchase ticket system for grain deliveries.
After consulting with taxpayers over the summer, Finance has concluded that the system should remain as-is and that farmers can continue to receive cash-purchase tickets as a form of deferred compensation for deliveries of listed grains. They will be allowed to use these cash purchase tickets to defer their income tax on those grain sales.
Finance announced in budget 2017 that it would begin consultations on changes to the system and consider whether the current program should be changed or eliminated. Interested parties were able to give Finance their feedback on this form of income tax deferral during a consultation period that ended July 24, 2017.
Cash purchase tickets are often issued to farmers who sell listed grain (i.e., wheat, oats, barley, rye, flaxseed, rapeseed or canola) to licensed grain elevator operators. If a grain operator pays a farmer with a cash ticket that the farmer can only redeem after the end of the taxation year that the grain was delivered in, it is called a deferred cash purchase ticket. Farmers who are paid with a deferred cash purchase ticket can wait and include the amount of the ticket in their income in the year they redeem the ticket for cash, resulting in an income tax deferral.
For more information, contact your KPMG adviser.
Information is current to November 14, 2017. The information contained in this publication is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's National Tax Centre at 416.777.8500