Harper hits Twitter to pan Netflix tax

In our inaugural edition, we look at comments Stephen Harper made in a Twitter video Wednesday where, after expressing his love for Breaking Bad (we won’t ask which character he identified with) he went on to talk about Netflix. “I’m 100 per cent against a Netflix tax – always have been, always will be”. “Every time he promises not to tax something that’s actually a clue that’s something he is going to tax”.

During a campaign stop in Toronto on Thursday, Mulcair said the NDP have no plans to usher in a Netflix tax.

Nevertheless, a Netflix tax has indeed been on the drawing board in some corners of Canada – not least from the Harper government itself.

Meanwhile the other parties are not sure what the hubub is about as they have never suggested they would tax such services.

What is a ‘Netflix tax, ‘ anyway?

Canadian online services such as Shomi and Crave, however, are obligated to.

Unlike Netflix, Canadian TV channels and radio stations are mandated to broadcast a minimum of Canadian content, and to provide payments to producers of Canadian media.

The CRTC doesn’t regulate the wildly popular television streaming service, which doesn’t charge HST or GST when Canadians sign up and pay the monthly fee. The government also sought input into whether it should enforce mandatory collection.

Both the Liberals and the NDP have repeatedly denied they support such a tax and pointed out the Conservatives’ 2014 budget included a call for consultation on collecting sales tax on online products sold by foreign companies.

Michael Geist, the Canada Research Chair in internet and e-commerce Law at the University of Ottawa, wrote in March that the Ontario government was one of those making the case for a levy on Netflix.

“It is irresponsible of the Harper Conservatives to intentionally mislead the public on this”. So even the Conservatives, effectively, “opened the door” to that tax.