The news was definitely good for Harborside
A subsidiary of California-based, Canada-listed Harborside Inc. (CSE: HBOR) owes about $11 million in aggregate tax deficiency, according to the U.S. Tax Court. That’s good news for Harborside, the cannabis company said Monday, as the IRS originally demanded $25 million more.
According to the IRS, Patients Mutual Assistance Corporation, owner of the Harborside Oakland cannabis dispensary, was deficient on taxes owed between 2007 and 2012.
The company said the sum — $36 million in taxes and penalties — reflected legitimate federal deductions mistakenly assumed under Section 280E of the IRS tax code, which prohibits cannabis companies from claiming federal deductions.
In 2018, the company unsuccessfully urged the court to exempt state-legal marijuana companies from Section 280E.
To Read The Rest Of This Article On Benzinga, Click Here