Stuart Bollefer is a Toronto, Ontario, CA, tax consultant who practices with Aird & Berlis, LLP, and provides knowledgeable advice to a wide range of clients. Stuart Bollefer’s focus includes new Canada Revenue Agency (CRA) rules that impact both individuals and businesses.
As reported by Reuters, one major development is Canada’s plan to levy a tax on digital services providers from 2022 on (or until a coordinated international OECD taxation regime is put into place). This includes foreign-based vendors that do not have a physical Canadian presence. From 2022, they will need to collect Canadian sales taxes on products ranging from streaming services to mobile apps. In implementing the new tax, Canada’s Finance Minister noted that multinational digital corporations are not contributing a “fair share” of taxes for revenues they generate through Canadian transactions. This new tax regime is expected to generate approximately C$3.4 billion ($2.6 billion US) over a 5-year span. In a related move, Ottawa will now require those who rent out short-term accommodations via digital rental platforms to collect sales taxes. This is described as a way of balancing the scales for tax-paying hotels that are at a disadvantage. The bottom line is that digital consumers should expect to see higher prices on a variety of services as CRA policy shifts to reflect new cross-border digital realities.
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AuthorExperienced Toronto Attorney Stuart Bollefer. Archives
September 2022
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