Post Tagged with: "netflix tax"

Pay No Tax Ever sign, duty free, sign, Pearson Airport T3, Toronto, ON, Canada by Cory Doctorow (CC BY-SA 2.0) https://flic.kr/p/nuuRgK

Trudeau Puts An End to the Netflix and ISP Tax Debate: “Consumers…Pay Enough for Their Internet”

For the past two years, the prospect of creating a Netflix tax or Internet tax has been the digital policy issue that would not die in Canada. The Standing Committee on Canadian Heritage called for an Internet tax last June, the province of Quebec remains anxious to pay digital sales taxes (there is nothing stopping them from doing so now), and many creator groups continue to the call for mandated contributions on Netflix to “level the playing the field” (the level playing field argument is misleading). The uncertainty surrounding Netflix and ISP taxes has not been helped by the reopening of the issue at the CRTC after the release of the government’s digital Cancon strategy and Canadian Heritage Minister Melanie Joly’s occasionally leaving the door open to the possibility.

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February 8, 2018 9 comments News
GST/HST Return, CRA, https://www.canada.ca/content/dam/cra-arc/migration/cra-arc/E/pbg/gf/gst59/gst59-17e.pdf

Think There Should be a Netflix Tax?: Why There is Nothing Stopping Canadian Subscribers From Paying Today

The ongoing furor over Netflix taxes remains one of oddest and most poorly understood public policy debates in recent memory. Part of the problem is that a “Netflix tax” has long been used to mean different things to different people. When first raised by the Conservative government, the issue had nothing to do with sales tax. Rather, a “Netflix tax” was a reference to a mandated contribution to help fund Canadian content, a position supported by various cultural groups and some provincial governments. The no-Netflix tax position took hold, however, and all three major parties adopted the position that they would not mandate contributions from online service providers such as Netflix.

More recently, the debate has shifted to Netflix tax as a sales tax with the goal of creating a “level playing field.” I tried to debunk the level playing field claims in this post and on Canadaland, but the claims of the need for a level playing field and sales tax continues. Yesterday, the NDP stated:

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October 11, 2017 3 comments News
What Is it to Be Human in the Fourth Industrial Revolution? by World Economic Forum (CC BY-NC-SA 2.0) https://flic.kr/p/Q2JwZA

Joly’s Challenge: Digital Cancon Without New Digital Tax Dollars

After months of public consultation and debate, Canadian Heritage Minister Mélanie Joly will unveil the government’s plan for Canadian content in a digital world this week. Joly launched the digital Cancon consultation in the spring of 2016 by emphasizing that all policy options were on the table, but the choices have narrowed considerably in recent months.

My Globe and Mail op-ed notes that a potential Netflix tax was a non-starter due to a 2015 election campaign commitment, Prime Minister Justin Trudeau eliminated the possibility of an Internet tax in June, and the government has steadfastly (and rightly) defended net neutrality, meaning there will be no mandated prioritization of Canadian content on the Internet.

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September 27, 2017 2 comments Columns
Tax by Phillip Ingham (CC BY-ND 2.0) https://flic.kr/p/wysZd

Not Exactly a Netflix Tax: Where Canada Stands on a Digital Sales Tax

The CBC’s report that the Canadian government is considering extending goods and services sales taxes to foreign-based digital services has sparked yet another round of articles and coverage of a possible “Netflix tax.” Some Conservative MPs were quick to pounce with claims the Liberals are pursuing a Netflix tax, yet the reality is a bit more complicated. At issue is not the culture contributions payment that is often called a Netflix tax. Despite calls for that form of Netflix tax, Canadian Heritage Minister Melanie Joly has been consistent in saying that the government will not extend mandatory Cancon contributions to Netflix.

In fact, this proposal is not targeted specifically at Netflix at all. Rather, it envisions the possibility of extending GST/HST to foreign-based digital services that are currently exempt from collecting and remitting sales taxes. While the law technically requires Canadian consumers to self-declare the sales tax they owe on those purchases, few are aware of the requirement and presumably even fewer actually do it.

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January 18, 2017 7 comments News
Premier Kathleen Wynne and Eleanor McMahon by Ben More Assynt (CC BY 2.0) https://flic.kr/p/mUDNLy

Ontario Government Tells Ottawa It Is Open to New Internet Tax to Fund Cancon

The Canadian Heritage consultation on Canadian content in a digital world recently concluded and the department has now posted the responses. There are few surprises with many creator groups supporting Netflix and Internet taxes, while Internet providers and consumer groups oppose them (my submission can be found here). The Ontario government was the only provincial government to file a response. The Ontario Ministry of Tourism, Culture and Sport’s submission acknowledges that there is “no evidence of an overall Cancon policy failure that would justify revolutionary policy reform”, but leaves little doubt that the government is open to new Internet taxes to fund Canadian content.

The Ontario government previously worked toward a Netflix tax as part of the CRTC’s Let’s Talk TV consultation. Given the controversy that generated, it is a bit more cautious this time but its support is not difficult to discern. Its starting point is that all industry players in the Canadian media market be required to contribute to Cancon. The submission states:

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December 15, 2016 7 comments News