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

Seniors in the Interior Health region can book their COVID-19 vaccinations starting Monday, March 8, 2021 at 7 a.m. (File photo)
Seniors in Interior Heath region can book COVID-19 shots starting Monday

Starting March 8 the vaccination call centre will be open 7 a.m. to 7 p.m. daily

A Coldstream resident who found an owl struggling on her property in March 2021 is now spreading awareness of about the knock-on effects of rodent poisoning. (Kathy Renaud photo)
Coldstream owl ‘fighting for her life’ after ingesting rat poison

Coldstream resident warns against the use of rodenticide due to risk of secondary poisoning in raptors

Vernon residents can breathe a little easier now that a dust advisory has ended in the area. (Brendan Shykora - Morning Star)
Dust advisory lifted in Vernon

Changing meteorological conditions have improved regional air quality

The City of Vernon is looking for input into its Climate Action Plan. (Jennifer Smith - Morning Star)
Vernon voices wanted on climate action plan

Community engagement sought on city plan

Displays and programming have continued at the Vernon Public Art Gallery despite pandemic restrictions. (Lianne Viau file photo)
Support keeps Vernon art groups’ lights on

Despite pandemic restrictions, art gallery and others sustaining the storm

The James C Richardson Pipe Band marches in a Remembrance Day parade on Nov. 11, 2019 in Chilliwack. Wednesday, March 10 is International Bagpipe Day. (Jenna Hauck/ Chilliwack Progress file)
Unofficial holidays: Here’s what people are celebrating for the week of March 7 to 13

International Bagpipe Day, Wash Your Nose Day and Kidney Day are all coming up this week

Kelowna General Hospital (File photo)
Second COVID-19 outbreak declared at Kelowna General Hospital

One patient and one staff member on Unit have tested positive for the virus.

Victoria man Brett Andersen is asking for people’s help to secure him one of eight free tickets to the moon. (Screenshot/@brettandersen Instagram)
Victoria man wants your help securing a free ticket to the moon

Japanese billionaire offering eight people a trip to the moon

The Conservation Officers Service is warning aquarium users after invasive and potentially destructive mussels were found in moss balls from a pet store. (BC Conservation Officers Service/Facebook)
Aquarium users in B.C. warned after invasive mussels found at pet store

Conservation officers were told the mussels were found in a moss ball from a Terrace pet store.

Hockey hall-of-fame legend Wayne Gretzky, right, watches the casket of his father, Walter Gretzky, as it is carried from the church during a funeral service in Brantford, Ont., Saturday, March 6, 2021. HE CANADIAN PRESS/Nathan Denette
Walter Gretzky remembered as a man with a ‘heart of gold’ at funeral

The famous hockey father died Thursday at age 82 after battling Parkinson’s disease

Fire ripped through a mobile home on Boucherie Road in West Kelowna on March. 6. (Phil McLachlan - West Kelowna News)
‘My whole life just went up in smoke’; Fire consumes Okanagan mobile home

RCMP confirmed that there were no injuries due to the fire

Donald Alan Sweet was once an all star CFL kicker who played for the Montreal Alouettes and Montreal Concordes over a 13-year career. Photo courtesy of Mission RCMP.
Ex-B.C. teacher who was CFL kicker charged with assault, sexual crimes against former students

Donald Sweet taught in Mission School District for 10 years, investigators seek further witnesses

During a press event on March 6, Const. Alex Berube, media relations officer for the West Shore RCMP, addressed a deadly shooting that occurred in Metchosin the night before. (Devon Bidal/News Staff)
VIDEO: One man shot dead on Vancouver Island in ‘targeted incident’

Highway 14 reopens following multi-hour closure for investigation

Personal protective equipment is seen in the COVID-19 intensive care unit at St. Paul’s hospital in downtown Vancouver. THE CANADIAN PRESS/Jonathan Hayward
$16.9 million invested to improve worker safety, strengthen B.C.’s food supply chain

Money to be used for social distancing, personal protective equipment, cleaning, and air circulation

Most Read