The Canadian government is deciding whether to enforce a digital tax, also known as the  “Netflix tax”, on digital services offered by foreign providers such as Netflix, Amazon, and iTunes.


Many online companies currently do not apply federal or provincial sales taxes to the bills of Canadian customers.


Failing to collect these taxes creates a significant loss in regards to tax revenue for the government and also makes it difficult for Candian companies to compete in terms of pricing. 

Although this digital “Netflix tax” has been undertaken in several other countries, including Australia, New Zealand, and Japan,  enforcing the tax has been fraught with difficulties.

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