This Aug. 13, 2020 photo shows a logo for Netflix on a remote control in Portland, Ore. Netflix Inc. THE CANADIAN PRESS/AP/Jenny Kane

This Aug. 13, 2020 photo shows a logo for Netflix on a remote control in Portland, Ore. Netflix Inc. THE CANADIAN PRESS/AP/Jenny Kane

PBO says taxing services like Netflix could yield feds $1.3 billion

The report goes on to say that consumers may change their habits if they start facing higher costs

A new report from the parliamentary budget officer says the government may be slightly underestimating how much revenue it could receive from taxing online services like Netflix.

As it is, foreign-based online services can sell their goods and services in Canada without charging federal sales taxes, leaving it to individuals to pay the outstanding amounts to the Canada Revenue Agency.

But they rarely do.

The Liberals announced in November’s economic statement that they planned to make foreign-based services collect and remit the Goods and Services Tax or Harmonized Sales Tax, depending on the province.

The fall economic statement estimated that the government would reap revenues of over $1.2 billion over five years starting this year.

The parliamentary budget officer estimates the bump in tax revenues could be over $1.3 billion over the same time frame.

The PBO report notes there is some uncertainty in the estimate because it based the figure on annual earnings reports from companies and survey data. The office also assumed all companies will comply with the policy.

The report goes on to say that consumers may change their habits if they start facing higher costs from newly taxed services, and switch to other digital products and services.

The report is one of two put out by budget officer Yves Giroux’s office today.

The second report estimates that the federal government will have to pay dairy, poultry and egg producers $786 million in the 2021-2022 fiscal year in compensation for lost income as a result of the new North American free trade deal.

The government vowed in November’s spending update to compensate producers in supply-managed sectors who lost market share under the United States-Mexico-Canada Agreement, but didn’t attach a dollar figure to the promise.

The Canadian Press

Entertainmenttaxes

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Alberta Premier Jason Kenney said Thursday that the province may consider a regional approach to loosening COVID-19 restrictions if numbers continue to decline. (photo by Chris Schwarz/Government of Alberta)
Province further easing health restrictions

Numbers of people hospitalized and in intensive care has dropped dramatically, says premier

Eric Rajah, co-founder of A Better World. (Photo Submitted)
Two Lacombe residents recieve award from Governor General for chairty work

Eric Rajah and Brian Leavitt co-founded A Better World, a charity which started in Lacombe in 1990

File photo
Alberta’s central zone has 670 active cases

301 new cases identified Sunday

Alberta has 1,910 active cases of COVID-19 as of Wednesday. Red Deer is reporting five active cases, with 108 recovered. (File photo)
Red Deer reports 25th COVID-19 death

415 new cases identified provincially Saturday

4-H Alberta Logo
Rimbey 4-H Club holds virtual public speaking event

Club members submitted their speeches and performances in video format for judging this year.

A ” Justice for Jeff” T-shirt. (Photo submitted)
Rally to be held outside Red Deer courthouse for slain Ponoka man

Sentencing for accused charged with manslaughter with a firearm set for March 4

THE CANADIAN PRESS/Jeff McIntosh
Time to check the mail: Every household to receive a Canada Post postcard this spring

Postcard can be mailed for free to any address in Canada

A cross-country skier glides along the banks of the Ottawa River in Ottawa on Thursday, Feb. 25, 2021. Canadians across the country can look forward to a mild spring peppered with the odd winter flashback throughout the first part of the season, according to predictions from one prominent national forecaster. THE CANADIAN PRESS/Sean Kilpatrick
Mild spring with some wintry blasts predicted for most of Canada: Weather Network

Weather Network is forecasting a slower than average start to spring in British Columbia

AstraZeneca’s vaccines are ready for use at the vaccination center in Apolda, Germany, Sunday, Feb.28, 2021. (Michael Reichel/dpa via AP)
Feds hoping for AstraZeneca shots this week as Pfizer-BioNTech prepare next delivery

The first of those doses could start to arrive in Canada as early as Wednesday

People line up outside a vaccine clinic as seniors wait to get the COVID-19 vaccine in Edmonton Alta, on Friday February 26, 2021. THE CANADIAN PRESS/Jason Franson
Alberta Health Services head sorry for glitches in vaccine booking system for seniors

AHS president said technical issues have been fixed and a virtual waiting room is in place

Vandalism is shown on Alberta NDP MLA Janis Irwin’s constituency office in Edmonton in this handout photo on Saturday, February 27, 2021. Alberta Premier Jason Kenney quickly condemned vandalism at an Opposition legislature member Janis Irwin’s Edmonton office after the MLA posted pictures showing her front window spray-painted with the words “Antifa Liar.” THE CANADIAN PRESS/HO, Janis Irwin *MANDATORY CREDIT*
Alberta Premier slams vandalism after slur painted on MLA’s office window

Edmonton MLA Janis Irwin posted pictures showing the front window spray-painted with the words ‘Antifa Liar’

A helicopter flies past a mountain near McBride, B.C., on Saturday January 30, 2016. THE CANADIAN PRESS/Darryl Dyck
Avalanche warning for backcountry users in North and South Rockies

Avalanche Canada is urging backcountry users to always check their regional avalanche forecasts

Most Read