Digital platforms, like Netflix, Airbnb, and Uber, operate in Canada earning millions of dollars from Canadian consumers without contributing a single dollar to the federal treasury. Commercial operators – those renting multiple units or entire homes on platforms like Airbnb – are acting like hotels without the same responsibilities to taxation, health and safety standards, business licenses, and insurance. These digital platforms need to comply with Canadian tax laws if they operate in Canada even without a substantial physical presence in our country. We need the government to keep up to date with new digital innovations and industry disruptors, in order to ensure that digital businesses contribute their fair share of tax revenue to the Canadian government
What BCHA is Doing To Help
We are recommending that the Government of Canada ensure all corporations that operate in Canada through a digital presence pay corporate income tax on Canadian earnings. We seek a committed effort from the government to require short-term rental platform companies operating in Canada to charge GST/HST to hosts and guests on all fees. In addition, the Government should amend the Income Tax Act to require short-term rental platform companies to issue an annual information slip on gross earnings to hosts and implement an information and enforcement program through the Canada Revenue Agency to encourage voluntary compliance for the short-term rental industry.