According to the Fraser Institute, Tax Freedom Day measures the total yearly tax burden imposed on Canadians by all three levels of government. It references the number of days Canadians work to pay all of their taxes up front. While Canadians and Canadian businesses are working hard to pay their fair share of taxes, foreign digital platforms are able to unfairly benefit from an outdated tax loophole and are therefore not required to collect and remit sales tax or pay corporate taxes on their Canadian income.
According to the Auditor General’s 2019 Spring Report on the Taxation of E-Commerce, the Canadian sales tax system is not keeping pace with the rapidly evolving digital marketplace, with estimated losses of $169 million in sales tax revenues on foreign digital products and services annually. Earlier this month, Group of 20 finance ministers agreed to accelerate efforts to close loopholes used by global tech giants and collect taxes from these digital companies with a consensus-based solution by the end of 2020. Despite the positive rhetoric around global digital taxation, we urge Canada to take action now.
It’s time for the Government of Canada to modernize its tax laws and ensure everyone is treated fairly. We all have responsibilities to contribute to the Canadian economy, and foreign-owned digital businesses should not be given a tax holiday.
Alana Baker, Director of Government Relations at the Hotel Association of Canada
Statement (ENG) DÉCLARATION (FR)To assist with forecasting for 2025, Avendra International releases its annual cost outlook, The Avendra Edge, highlighting key macroeconomic trends and supply chain solutions to as....
Read MoreThe Hotel Association of Canada (HAC) is pleased to announce the appointment of Beth McMahon, MES, as its new President & CEO, effe....
Read MoreGreen Key Global, North America’s leading sustainability certification program, has announced an exciting revamp of their ....
Read MoreGreen Key Global – the only sustainability certification designed specifically for hotels....
Read More