TerrAscend Corp. is making waves in the cannabis industry by announcing plans to stop paying taxes owed under Section 280E of the Internal Revenue Code, potentially paving the way for a $26 million refund. This bold move has put them in the spotlight alongside other major players in the market who are challenging traditional tax obligations.
Executive Chair Jason Wild and Chief Financial Officer Keith Stauffer have revealed that TerrAscend has reclassified its tax liabilities, marking a strategic shift in its approach to tax payments. By filing amended returns for 2020, 2021, and 2022, the company is setting a precedent for tackling tax challenges head-on.
TerrAscend’s decision to challenge 280E obligations aligns with a broader trend in the industry, with companies like Trulieve Cannabis Corp. and Ascend Wellness Holdings also pursuing similar tax refund strategies. As more cannabis businesses explore creative solutions to tax hurdles, the landscape of the industry is evolving rapidly.
The company’s recent financial results underscore its strong position in the market, with significant revenue growth despite facing net losses. TerrAscend’s innovative approach to taxation reflects a larger shift in the cannabis sector towards challenging conventional norms and exploring new avenues for growth and sustainability. By taking a proactive stance on tax obligations, TerrAscend is positioning itself as a trailblazer in the ever-changing landscape of the cannabis industry.
