Post Tagged with: "internet tax"

State of Washington Tax Commission Sales Tax Token by Curtis Perry (CC BY-NC-SA 2.0) https://flic.kr/p/dHn6my

Making Sense of the Canadian Digital Tax Debate, Part 1: Digital Sales Taxes

Digital tax has emerged as one of the most contentious Canadian digital issues with groups advocating for a wide range of new enforcement or policy measures including digital sales tax, taxes on online video services, income taxes on digital companies, tax measures in support of media organizations, Internet access taxes, and digital device taxes. Unfortunately, the debate is often muddled by the use of the same terms, creating considerable confusion. For example, references to “Netflix taxes” have been used with regard to digital sales tax on Netflix, mandated Canadian content contributions for Internet services such as Netflix, and income taxes payable by Netflix.

This blog series will attempt to unpack digital tax debate. The series begins with digital sales taxes, which was back in the news earlier this month when Finance Minister Bill Morneau confirmed that Canada is awaiting an international agreement on digital sales taxes before implementing any domestic reforms. Morneau indicated the government would support a quick resolution of the issue – the current deadline is 2020 – but that a provincial digital sales tax in Quebec will not spark a matching federal tax until the global issues are resolved.

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October 24, 2018 7 comments News
California Internet tax bill breakdown by Stephanie Robogeisha (CC BY-NC-SA 2.0) https://flic.kr/p/9YoqbP

Canadian Music Group Calls For Copyright Tax on Broadband Data Use

The hearings into Canadian copyright have resumed at both the Industry and Canadian Heritage committees with witnesses making the case for a wide range of reforms. While Bryan Adams received the lion share of attention last week for his proposal to assist creators with quicker reversion of their rights, another proposal from the Screen Composers Guild of Canada (SCGC) deserves some scrutiny as an illustration of how many groups want new taxes or fees imposed on Internet services and technologies. I’ve written in the past about the music industry’s call for a tax on iPhones and other devices as well as its proposal for a $40 million per year taxpayer handout in until an iPhone tax can be implemented. This week the SCGC introduced a new proposal that would subject broadband data use to a copyright tax.

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September 28, 2018 32 comments News
Stop ACTA 21 by Martin Krolikowski (CC BY 2.0) https://flic.kr/p/bs3Yxp

Regulate Everything: The CRTC Goes All-In on Internet Taxation and Regulation

For two decades, a small collection of cultural groups have been pressing the CRTC to regulate and tax the Internet. As far back as 1998, the CRTC conducted hearings on “new media” in which groups argued that the dial-up Internet was little different than conventional broadcasting and should be regulated and taxed as such. The CRTC and successive governments consistently rejected the Internet regulation drumbeat, citing obvious differences with broadcast, competing public policy objectives such as affordable access, and the benefits of competition. That changed today as the CRTC released “Harnessing Change: The Future of Programming Distribution in Canada“, a difficult-to-read digital-only report (as if PDF is not digital) in which the CRTC jumps into the Internet regulation and taxation game with both feet.

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May 31, 2018 27 comments News
Here is the Internet by Wolfgang Stief (CC0 1.0)  https://flic.kr/p/7k6W5j

Government Rejects Call for an Internet Tax: “Conflicts With Principle of Affordable Access”

The federal government yesterday released its response to the Standing Committee on Canadian Heritage report on local media released last June. The most controversial recommendation in that report – one swiftly rejected by Prime Minister Trudeau – was a call for a new Internet tax to help fund Canadian media and the creation of Cancon. As I wrote at the time, the proposal is a terrible idea that runs counter to important policy objectives of fostering affordable network access for all Canadians.

The government response, signed by Ministers Joly, Bains, and Morneau, rightly notes that “access to affordable broadband Internet, particularly in rural and remote regions, is essential to the participation of the Canadians in the digital economy.”  In light of this policy priority, the government firmly rejects the Internet tax proposal, grounding its decision in the principle of affordable access:

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October 19, 2017 Comments are Disabled News
failcampmtl 2014 - 141 by Eva Blue (CC BY 2.0) https://flic.kr/p/kphFrX

Melanie Joly Can’t Seem to Quit the Idea of an Internet Tax

Canadian Heritage Minister Melanie Joly seemingly put the prospect of an Internet tax to bed when she launched her Creative Canada report last month. Throughout the year-and-a-half consultation, there were persistent rumours that an Internet tax was being considered as a mechanism to help fund Cancon. Yet when the Prime Minister rejected an Internet tax last June minutes after it was proposed by the Standing Committee on Canadian Heritage, the policy initiative promoted by some cultural lobby groups seemed dead. Joly’s comments at her policy launched suggested much the same:

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October 10, 2017 Comments are Disabled News