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On January 2, 2008,
changes to Regulation 54 of the Beef Cattle Marketing Act came into effect.
These
changes include:
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Ontario’s
check-off has been reduced from $2.25 to $2.00
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A
$1.00 National check-off has been introduced
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Total
check-off in Ontario will be $3.00, effective January 2, 2008
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Cattle
sold for export are only deducted the $2.00 Ontario check-off
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Dealers
are not required to pay check-off on the sale of cattle if they
have been purchased within seven business days, with proper
documentation
For
more details on the changes, please click
here to read an article from the August 2007 issue of Ontario
Beef magazine, or click
here to view a downloadable PDF.
If
you have questions, please call the OCA office at (519) 824-0334
Please
note that due to the HST introduction of 13% on
July 1, 1010, the Ontario Cattlemen’s
Association (OCA) has developed revised
check-off forms which
are applicable to all transactions made on or after July
1, 2010.
To
download printable PDFs of the new check-off forms, click on the
appropriate links below.
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REVISED:
OCA
Check-off Deduction Remittance Report for Individuals
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REVISED:
Form
101 OCA
Check-off Deduction Remittance Report for Licensed
Dealers
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REVISED:
Form
102 Seven Business Day Dealer Exemption Statement
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List
(Form) of Cattle Sellers from Whom Check-off Has Been
Deducted
CHECK-OFF QUESTIONS AND
ANSWERS
Who has to pay the check-off?
A. Every cattle seller has an obligation to pay the $3.00/head checkoff.
Cull dairy cows, bob calves and veal calves included. Exemptions exist
only for:
a. cattle sold in a public auction sale organized where all of the
cattle being sold are for the production of milk
b. the seller does not reside in Ontario
c. the Seven Day Dealer Exemption applies
Q. Isn't the check-off collected only when cattle are sold for slaughter?
A. No. The $3.00/head checkoff is payable whenever cattle are sold,
subject to the exemptions cited above.
Q. Who is responsible for collecting the checkoff?
A. Both the buyer and seller are responsible. The regulation requires
that auction market operators, packing plant operators and livestock
dealers deduct the $3.00/head check-off from the proceeds payable to
cattle sellers. The seller is responsible for remitting the $3.00/head
check-off on cattle sold by a means other than to an auction market,
packing plant or livestock dealer - this includes cattle being sold for
export or in instances where the buyer who is required to deduct the
checkoff has failed to do so.
Q. How do I remit checkoff and when is payment due?
A. In the vast majority of cattle transactions, it is the responsibility
of the buyer to deduct the $3.00/head check-off from the proceeds payable
to the cattle seller. Firms which deduct check-off are required to remit
the check-off fees which they have deducted by the 15th day of the month following the date of transaction to the Ontario Cattlemen's
Association (OCA). A seller
MUST remit the checkoff on private treaty transactions directly to the
Ontario Cattlemen's Association with a statement showing the name and
address of the seller, and the number of head sold by the 15th of the
month following the quarter in which the cattle were sold.
Example One: Private Treaty to Producer
Producer #1 sells 100 head to Producer #2 -----------> Producer #2 (No
License Fees)
In this scenario, Producer #1 Remits $3.00 plus GST per head of cattle
he sells and remits to the OCA Producer #2 has no License Fees to remit.
Example Two: Private Treaty to Livestock Dealer
Producer #1 sells 100 head to Livestock Dealer -----------> Livestock
Dealer must deduct and remit license fees.
In this scenario, the Livestock dealer receiving the cattle from
producer #1 deducts the $3.00 plus GST from monies payable to Producer
#1 and the Livestock dealer remits the collected monies to OCA by the
15th day of the month following collection.
Please Note: OCA
check-off is subject to HST.
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