The Department of Environment, Energy and Forestry and the Canada Revenue Agency (CRA) signed a Memorandum of Understanding today designed to provide both agencies with information on the Island’s Ground Hemlock sector. The MOU commits both agencies to sharing information regarding the harvest and sale of Ground Hemlock in order to ensure the sustainability of the resource and industry compliance with federal tax laws.
With the new Ground Hemlock training course and the licensing of harvesters and buyers implemented in 2006, the Island’s Ground Hemlock industry has become a leader in sustainability. This MOU is designed to ensure the open exchange of information related to the Ground Hemlock concerns of both levels of government and will help us to ensure industry compliance and the sustainability of the resource.
Ground Hemlock is actually a member of the Yew family. It is a common forest shrub in many Island woodlots, and its foliage and bark can be collected and used to create several cancer fighting drugs. In 2003 and 2004, demand for the plant led to wide spread problems with theft, trespass and unsustainable harvest practices. Many Island land owners expressed serious concern about the damage to their forest, loss of income and the future of the resource, so in 2006, the Province enacted regulations under the Wildlife Conservation Act requiring mandatory training and creating harvest standards for the industry.
The CRA emphasized the importance of maintaining a level playing field for all involved in the industry. When conducting books and record audits of Ground Hemlock buyers and agents to ensure compliance with federal income tax and goods and services tax laws, CRA employees will also determine if the records comply with provincial acts and regulations. As well, the CRA will continue to participate in the Ground Hemlock training programs.
The agreement outlines what types of information the CRA will provide to the province and vice versa. The intent of this MOU is twofold – to ensure that government’s respective efforts are coordinated and effective and that they do not interfere with the harvest or land owners’ ability to generate income from their lands. The provincial and federal governments are working together to see that the industry operates in a fair and open manner which guarantees both the rights of land owners and the sustainability of the resource.
The MOU comes into effect immediately and copies are being sent to licensed and registered Ground Hemlock buyers. Additional copies can be obtained by calling the Forests, Fish and Wildlife Division at 902 368 4700 or online at www.gov.pe.ca/go/taxus1