Harvesters of Prince Edward Island’s ground hemlock will find their work under both federal and provincial scrutiny through a new deal between the province and Canada Revenue Agency (CRA).
The provincial environment, energy and forestry department and CRA signed a memo of understanding Thursday on information sharing, a deal the province said will help make sure the hemlock resource is sustainable and the industry complies with federal tax law.
Ground hemlock, a member of the yew family of conifers, is a common shrub in many of the province’s woodlots. Its foliage and bark are collected for use in several cancer-fighting drugs.
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Demand for the plant led to widespread problems with theft, trespass and unsustainable harvest practices in 2003 and 2004, leaving many Island landowners concerned over damage to their woodlots, loss of income and the future of the resource, the province said in a release.
The P.E.I. government stepped in with regulations in 2006 under its Wildlife Conservation Act requiring mandatory training and creating harvest standards for the industry, including a licensing system for both harvesters and buyers.
With an eye on “maintaining a level playing field for all involved in the industry,” CRA said, when auditing ground hemlock buyers and agents for compliance with federal income tax and GST laws, the agency’s employees will also make sure records comply with provincial acts and regulations.
CRA will also continue to participate in the province’s ground hemlock training programs, the agency said.