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

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

Just Posted

The Okanagan’s first virtual wedding fair will be held Saturday, March 27. {Paul Rodgers photo)
Okanagan to host virtual wedding fair

Okanagan wine country is No. 1 destination for weddings - online event set for March 27

Wills Hodgkinson, 10, and his mom Neeley Brimer get ready to battle round three of cancer. The community of Penticton has his back. (Submitted)
Community raises $21K to help Penticton boy battle third round of cancer

Okanoggin Barbers held the fundraiser on Saturday for 10-year-old Wills Hodgkinson

Baldy Mountain Resort was shut down on Saturday after a fatal workplace accident. (Baldy Mountain picture)
UPDATE: 70-year-old man killed in workplace accident at Baldy Mountain

The mountain closed on Saturday but has partially re-opened today (Sunday)

Send your letter to the editor via email to news@summerlandreview.com. Please included your first and last name, address, and phone number.
LETTER: Summerland affordable housing proposal opposed

“For a building that will change the dynamic of a small town, I would have expected more discussion.”

A health worker holds a vial of AstraZeneca vaccine to be administered to members of the police at a COVID-19 vaccination center in Mainz, Germany, Thursday, Feb. 25, 2021. The federal state of Rhineland-Palatinate, start with the vaccination of police officers in internal police vaccination centers. (Andreas Arnold/dpa via AP)
B.C. officials to unveil new details of COVID vaccination plan Monday

Seniors and health-care workers who haven’t gotten their shot are next on the list

(Contributed)
Kelowna flight potentially exposed to COVID-19

Third case on a local flight this month, compared to 14 through January

Vernon Search and Rescue, with help from the Air Rescue One helicopter out of Wildcat Helicopters in Kelowna, and Central Okanagan Search and Rescue, were able to transport an injured snowmobiler to Vernon Regional Airport, where he was loaded into an ambulance and taken to Vernon Jubilee Hospital with a serious, painful back injury. (Facebook photo)
Okanagan helicopter rescue teams called to retrieve injured sledder at Greystokes

Vernon and Central Okanagan Search and Rescue help load injured man into waiting helicopter

An investigation is underway after a man was shot and killed by Tofino RCMP in Opitsaht. (Black Press Media file photo)
Man shot and killed by RCMP near Tofino, police watchdog investigating

Investigation underway by Independent Investigations Office of British Columbia.

B.C. Supreme Court in Vancouver on Tuesday December 11, 2018. THE CANADIAN PRESS/Darryl Dyck
B.C.’s compromise on in-person worship at three churches called ‘absolutely unacceptable’

Would allow outdoor services of 25 or less by Langley, Abbotsford and Chilliwack churches

Jasmine and Gwen Donaldson are part of the CAT team working to reduce stigma for marginalized groups in Campbell River. Photo by Marc Kitteringham, Campbell River Mirror
Jasmine’s story: Stigma can be the hardest hurdle for those overcoming addiction

Recovering B.C. addict says welcome, connection and community key for rebuilding after drug habit

Chase RCMP held two men involved in drunken disturbances overnight in their detachment’s cells on Feb. 6. (File Photo)
Chase RCMP hold two men involved in drunken disturbances overnight

The two separate incidents took place less than an hour apart.

Kamloops Fire Rescue battled a landfill fire which belched toxic smoke into the air on Feb. 27. (City of Kamloops Photo)
Fire at Kamloops landfill sends thick black smoke into the air

Firefighters made slow progress on the fire throughout the morning.

Most Read