In a previous blog post, we discussed the high tax rates on Wine, Beer & Spirits products and the complex legal framework surrounding them. In this 101 series, we will cover key topics, including Licensing Requirements, Audits and Assessments, and Enforcement Actions. This first installment focuses on the Licensing Requirements for producers of Wine, Beer & Spirits products. Licensing is often seen as the first step in compliance, and failure to meet these requirements can result in severe penalties, including fines, imprisonment, or both.
Wine Licence
Under subsection 62(1) of the Excise Act, 2001 (the “EA 2001”), a person is prohibited from producing or packaging wine without a Wine Licence, except in certain cases such as producing for personal use. To obtain a licence, applicants must meet specific eligibility criteria, which vary depending on whether they are individuals, partnerships, or corporations. A common requirement is that the applicant has to demonstrate sufficient financial resources to operate business in a responsible manner.