OTTAWA, Dec. 12, 2014 The Canadian Pharmacists Association (CPhA) is aware that the Canada Revenue Agency (CRA) has filed a judicial application for several generic pharmaceutical manufacturers to provide information regarding incentive payments and rebates to pharmacies. CRA has filed this application due to concern that some pharmacies may not be in compliance with regard to reporting such payments and rebates as taxable income.
Rebates are a normal part of many commercial businesses in Canada. They occur in various retail environments subject to provincial regulations. For community pharmacies in many parts of Canada, these resources help support patient care to meet the auxiliary health service needs of Canadians.
CPhA believes that all pharmacies need to respect the relevant tax laws and regulations of their respective jurisdictions, and it is incumbent upon each individual pharmacy to understand those laws. It is also important for the CRA to work cooperatively with the pharmacy sector to inform and educate the sector on tax reporting requirement in this area and correct any errors that may have occurred.
Canadian pharmacists across Canada deliver quality health care services and are an integral part of the health care team. Every day across Canada pharmacists are working to help Canadians live healthier lives.
SOURCE: Canadian Pharmacists Association
For further information: Jeff Morrison, Director, Government Relations and Public Affairs, 613-523-7877 ext. 386, 1-800-917-9489 ext. 386, [email protected]