Supreme Cannabis Company Inc. (The) T.FIRE

Sales Taxes

[theTransporter]

Here's a quicke education for those of you who think sales tax is deducted from revenue.... it's not!

If Supreme sells a product at $5 per gram, the invoice generated to their customer is $5 + taxes.  That tax is collected from the customer and remited to the government.  We as customers see a price where taxes are included, thus if let's say taxes are 10% (for the sake of easy math), Supreme sells their gram at $5.50 to a supplier, who then may mark it up $1 then sell it to a customer or retailer for $6.60 (taxes included).  Their revenue line item is only $6 and teh $0.60 is a flow through.

Sales taxes  DO NOT get deducted from anyone's revenue.  It's charged on top of the revenue.  It's a flow through.  It's simple accounting 101.

Only tax that is paid are corporate taxes on PROFITS.

[theTransporter]

Forgot to mention that at the end of the day, it's the end user (customer) that pays out of pocket for the sales tax.  All the other steps within the chain from the manufacturer to the retailer just collect that tax on behalf of the government.

[MoneyTalks7]

100% true Transporter, and the government can't get this tax soon enough. This is a welcomed cash cow to the government and they want this industry to grow substantially.

[watchmeplz]

In my opinion, nobody ever mentioned sales tax. The tax I'm implying is a special cannabis tax the provincial, federal, and municipal govts levy. Provincial is 15%, then there's a federal stamp act it's $1/g and municipal tax, that's all before income tax, yes we fully understand sales tax moves from the purchaser to the govt, this has nothing to do with that, you both should

[MoneyTalks7]

The taxes varies from province to province and all that information can be found in their website. A complete guideline from producer to consumer. 

[theTransporter]

The tax you are describing is still a sales tax.  HST/GST/PST are not the only types of sales taxes.  What you describe is paid for by the consumer at the end, not the supply chain. No different than gasoline or cigarettes and even booze.  You think the alcohol distellers or wine producers pay the taxes inlcuded in the sale of alcohol?  Or the petrolium refineries pay for the

[watchmeplz]

In my opinion, Liar lair pants and stock on fire. Go checkout from bc cannabis store or any other provincial website and tell me if you see anything other than pst/gst/hst. Nice try. 

[watchmeplz]

  https://ibb.co/vLFxcvD lies. 

[PRedictIVEai]

This post has been removed in accordance with Community Policy

[theTransporter]

You're actually proving my point and disproving your own.   Each province varies, but in the example you have provided for BC, they charge PST and GST on top of the sale price.  This tax is paid for by the consumer and NOT the producer.  As per https://www2.gov.bc.ca/assets/gov/taxes/sales-taxes/publications/pst-141-cannabis.pdf, there are no other sales taxes on

[vulcan123456789]

your correct trans maybe he will understand you can use accumulated capital losses to offset a future capital gains.. so in a sense when supreme makes profit it will be tax free for some time due to past losses. makes the point of profit sweeter.. atleast for a time

[watchmeplz]

In my opinion, you keep referring to SALES tax, gst/pst/hst. I however, am referring to the provincial 15% special cannabis tax, the $1/g federal special cannabis tax, and special cannabis municipal tax, all which you DO NOT see on top of the sale which I posted in my picture, which indicates the COMPANY pays not the consumer. So stop lying  

[Method]

Are you referring to the excise taxes captured between the gross revenue and net revenue line? The $5/g pricing they received last quarter was based on net revenue.

[watchmeplz]

In my opinion, are you talking about this line from the financials?  "while the average selling price per gram for recreational sales in Q4 2020 was $5.00" Selling price which is referring to top line sales revenue, not gross profit, not net profit.  

[Method]

Your opinion was wrong this time. I was referring to this footnote on page 17 of the 2020 AR: "Average selling price indicates price per gram equivalent, net of excise tax and discounts and returns provisions." And again selling price as this line refers to is not talking about top line revenue which is described as "Gross Revenue" in the Income Statement. It refers to net