California Internet tax bill breakdown by Stephanie Robogeisha (CC BY-NC-SA 2.0) https://flic.kr/p/9YoqbP

Digital Tax

Taxes by Blink O'fanaye https://flic.kr/p/8Px1Xk (CC BY-NC 2.0)

The Broadcasting Act Blunder, Day 9: Why Use Cross-Subsidies When the Government is Rolling Out Tech Tax Policies?

The Broadcasting Act blunder series continues with a slight tangent to consider the implications of yesterday’s Government of Canada Fiscal Update for the claim that reforms are needed to ensure that foreign Internet companies make appropriate contributions to the Canadian market. Canadian Heritage Minister Steven Guilbeault emphasized the issue when discussing Bill C-10 in the House of Commons, talking about payments being a “matter of fairness” and concerns that foreign Internet streamers “make money off the system with no obligation to give back.”

Finance Minister Chrystia Freeland yesterday outlined the better way to ensure equality of treatment and payments into Canada, namely tax policy.

December 1, 2020 — 6 comments — News

Monopoly Income Tax Ver1 by Chris Potter http://www.ccpixs.com/ (CC BY 2.0) https://flic.kr/p/dAufY9

Forget Link Licensing and Cross-Subsidies: When it Comes to Tech, Canada Should be Focused on Competition Law and Tax Policy

Canadian Heritage Minister Steven Guilbeault was recently asked about his plans to mandate licensing of links to news articles on social-media sites such as Facebook. While the policy is often referred to as a link tax, Mr. Guilbeault insisted that it was not a tax, stating “some people think every time the government acts, it’s a tax. What I’m working on has nothing to do with tax.” Instead of a government tax scheme, Mr. Guilbeault explained that he intends to have the Copyright Board of Canada set a fee for the links to articles, backed by government power to levy fines for non-payment.

Leaving aside the semantic debate over what constitutes a government tax, my Globe and Mail op-ed argues that the comments are notable because when it comes to addressing the concerns associated with the large technology companies, Canada should be working on taxation. Mr. Guilbeault has said his top legislative priority is to “get money from web giants,” yet rather than focusing on conventional tax policy, his preference is to entrench cross-subsidy programs that keep the money out of general tax revenues and instead allow for direct support to pet projects and favoured sectors.

October 16, 2020 — 2 comments — Columns

Stand Google News Initiative by Associação Brasileira de Jornalismo Investigativo https://flic.kr/p/KorcJ2 (CC BY 2.0)

Why “Taking On” Google and Facebook Isn’t the Cure for the Media Sector’s Ills

Canadian media organizations face difficult challenges in an age of virtually unlimited Internet competition, a dramatic shift toward digital advertising, and an unprecedented global economic and health crisis. That has led media groups to urge the federal government to “take on” Google and Facebook by requiring them to fund local media. Prime Minister Justin Trudeau has thus far declined to do so. That may spark criticism in some quarters but claims that government-mandated payments from Internet companies will solve the sector’s ills are unconvincing.

My Financial Post op-ed notes that everyone agrees the media sector is more competitive than ever. News organizations such as the New York Times and Washington Post, digital media companies like The Athletic and The Logic, podcasters competing with mainstream media audio offerings and the CBC’s continued digital expansion all offer compelling and competitive news alternatives. This breadth of choice for Canadian news consumers isn’t the fault of Google or Facebook. It is a reflection of low barriers to market entry and a proliferation of services that often do a better job than many established media companies of serving specialized content.

May 13, 2020 — 3 comments — Columns

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After the Tech-Lash: Digital Policy Priorities in the Post-Pandemic World

In the months before the coronavirus outbreak, numerous governments around the world enthusiastically jumped on the “regulate tech” train. Digital tax proposals, content regulation requirements, national digital spending mandates, as well as new privacy and data governance rules were viewed by many as essential to respond to the increasing power and influence of digital giants such as Google, Facebook, Netflix, and Amazon.

My Globe and Mail op-ed notes the pandemic has not only sparked a massive shift in economic and health policy priorities, but it is also likely to reorient our views of the tech sector. Companies that only months ago were regarded as a threat are now integral to the delivery of medical equipment, critical to the continuing function of workplaces in a work-from-home world, and the platforms for online education for millions of students. Billions of people rely on the sector for entertainment, communication with friends and family, and as the gateway to health information.

May 6, 2020 — 4 comments — Columns

Image by Simaah from Pixabay https://pixabay.com/photos/cbc-interview-people-outdoors-4729171/

CBC Leads Call for New Government Regulations to Support “Trusted” News Sources

Last month, the Broadcast and Telecommunications Legislative Review Panel report sparked an immediate outcry as it recommended that the CRTC identify “trusted” news sites and require news aggregators to link to them:

We recommend that to promote the discoverability of Canadian news content, the CRTC impose the following requirements, as appropriate, on media aggregation and media sharing undertakings: links to the websites of Canadian sources of accurate, trusted, and reliable sources of news with a view to ensuring a diversity of voices; and prominence rules to ensure visibility and access to such sources of news.

In fact, notwithstanding Canadian Heritage Minister Steven Guilbeault’s attempts to walk-back initial comments that regulating news websites and services was “no big deal”, the reality is the regulatory structure envisioned by the panel also empowers the CRTC to require these organizations to disclose financial information, consumption data, and algorithmic information. It would also be given the power to regulate commercial negotiations between news providers and these sites and services.

Notwithstanding the public backlash against the proposals (including a House of Commons petition), there is another lobbying effort to get the government to regulate in support of “trusted” news sources. Led by the CBC, the initiative has succeeded in bringing the Toronto Star, Postmedia, Winnipeg Free Press, La Presse, Le Devoir, and others on board.

February 19, 2020 — 11 comments — News