A Liberal-dominated House of Commons committee is calling on the Trudeau government to make Internet giants like Netflix collect and remit sales taxes on their services. THE CANADIAN PRESS/AP/Patrick Semansky

Liberals urged to tax e-commerce services like Netflix

Trudeau has been adamant that his government wouldn’t increase taxes on online subscriptions

A Liberal-dominated House of Commons committee is calling on the Trudeau government to make Internet giants like Netflix collect and remit sales taxes on their services.

The international trade committee’s report on e-commerce issues, released today, recommends the government apply sales taxes “on tangible and intangible products” sold through online platforms, and tax the profits from those sales.

Foreign-based streaming services without a physical presence in Canada don’t have to collect or remit sales taxes, leaving it up to consumers to pay the sales tax to tax collectors — something that, in reality, rarely happens.

READ MORE: Netflix to invest $500M in Canada as part of feds’ new cultural plan

Prime Minister Justin Trudeau has been adamant that his government wouldn’t increase taxes on online subscriptions, but his finance minister has suggested the Liberals want to ensure online firms pay their fair share of taxes.

Conservatives on the committee say they want Trudeau to honour his pledge not to introduce a Netflix tax, writing in a dissenting report that such a tax would only create additional costs for consumers and hurt Canada’s small businesses.

New Democrats on the committee say the Liberals need to apply corporate income taxes on e-commerce profits earned in Canada by domestic and foreign sellers, provided the income exceeds a specific threshold.

The Canadian Press

Like us on Facebook and follow us on Twitter.

Just Posted

Maskwacis and feds sign historic education agreement

The Maskwacis Education School Commission signed an agreement setting the stage for their education

UPDATE: Puppies rescued at structure fire in Lacombe

The Bentley Fire Department assisted Lacombe in a structure fire where crews saved some puppies

Trial for man accused of 2006 Eckville murder “unreasonably delayed”

Lacombe’s Shayne Gulka is awaiting trial for the 2006 murder of Bradley Webber

Producers are already charging customers for recycle services

Fixed recycle fees are built-in to packaging rates by producers across the country.

Bringing composting to Ponoka is a simple step

For $2 extra per month, Ponoka residents can see compost collections

VIDEO: Canadians rise for early-morning Royal wedding celebrations

Canadians gathered for early-morning broadcast of marriage between Meghan Markle, Prince Harry

Las Vegas Golden Knights move on to Stanley Cup final

Improbable run continues for NHL’s newest expansion team

Oregon’s flooded recreational pot market a cautionary tale to B.C.

‘In a broader sense, we are adding legal production to an already robust illegal production’

3 survivors after airliner with 110 aboard crashes in Cuba

It was Cuba’s worst aviation disaster in three decades and its third major air accident since 2010

Individuals face 84 criminal charges related to stolen, counterfeit credit cards

Investigation and search warrant executed collaboratively by Red Deer and Sylvan Lake RCMP

Plane with 104 on board crashes on takeoff in Cuba

Boeing 737 operated by state airline Cubana crashed on takeoff from Jose Marti International Airport

UPDATED: Gunman opens fire in Texas high school, killing up to 10

Santa Fe High School which went on lockdown around 8 a.m. Friday

Coroner speaks about mix-up of Humboldt Broncos crash victims, release of name

A coroner involved says it wasn’t until an injured player woke up in hospital and said he was a different person that officials realized the mistake

‘Nowhere near close:’ U.S. rebuffs Trudeau hope for quick NAFTA deal

The United States declared the NAFTA countries were nowhere close to a deal in a statement Thursday

Most Read