Softwood Refunds Carry Levy

By 250 News

 
Companies wanting to get their softwood duty refund will have to  pay Ottawa 19% of their refund cheque. That is the only way  they will get their refund.

David Emerson, Trade Minister says the duty refunds will be paid out by Export Development Canada and they will assume the job of collecting from the US Customs.

Companies who have signed on to the deal, can expect to begin to receive their share of the pie within four to eight weeks. Those that opposed the deal will also have to sign on in order to receive their share of the $4.4 billion dollars US that will be available.

About 1500 soft wood lumber producers were involved in the settlement many had not signed on and by introducing this special 19% charge, the government will reduce the amount of taxes the producers will pay and at the same time will be able to bring those in line who have not bought into the agreement by making it a requirement to apply to the federal government for their returns.

The US could take up to 2 years to return the levies collected at the border to the individual companies. 

Under the new deal the Federal Government will be able to control the flow of the cheques to all of the producers. In effect, to most companies, the 19% levy is a break from the normal federal taxes they would have paid  on the refund and was a means of getting everyone on side.  

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