Canada's Netflix Tax

It's not called a levy this time


Wed, Jan 18th, 2017 11:00 by capnasty NEWS

Albeit last year the Harper government stated that it "would never tax Netflix," the current Liberal government is reviewing if it should enforce some form of payment from "digital services Canadians buy from foreign-based firms over the internet." The argument is that Bell is forced to charge its customers taxes on the services they buy, Netflix should as well in order to keep things competitively fair. Bell, unsurprisingly, is the company that filed the complaint.

"Our government has said there will be no Canadian-content levy on Netflix," Annie Donolo said in an email.

"At the same time, we are committed to ensuring that Canada's tax system is fair and supports the objective of an economy that works for everyone. In that vein, Finance Canada regularly assesses the tax system to ensure it is fair, efficient and fiscally responsible."

In a November submission to the federal government, BCE Inc. called on the Liberals to implement sales taxes on foreign suppliers of digital content, such as Netflix, "or remove the obligation to charge sales tax for Canadian owned and controlled … services to allow for competitive parity."

Asked for comment, Netflix provided CBC News a short statement through its Toronto-based public-relations firm, Environics: "Netflix collects and remits tax wherever we are legally obligated to do so."



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