OTTAWA—Heritage Minister Steven Guilbeault is hinting that changes to Canada’s broadcasting and telecom rules could include making online streaming giants like Netflix and Amazon pay sales taxes and requiring them to invest in Canadian programming.
On Jan. 29, an expert panel delivered a report to the federal government recommending sweeping new powers and responsibilities be given to the Canadian Radio−television and Telecommunications Commission, including oversight of foreign streaming services like Netflix, Amazon, and Apple.
Speaking at a broadcasting industry conference in Ottawa on Jan. 30, Guilbeault promised legislation to reform Canada’s broadcasting and telecom rules within a matter of months, but offered few details on what the proposed changes will be.
Later, when pressed by reporters, he suggested there were a few of the panel’s particular recommendations that he agreed with, including one saying Ottawa should immediately require streaming companies to start collecting and remitting GST/HST.
“I think that’s about fairness. Everybody is paying the GST in Canada, I don’t see why some of the richest companies in the world shouldn’t pay GST in Canada,” Guilbeault said.
He also noted that Prime Minister Justin Trudeau said in a recent interview that a measure to tax online streaming services could be coming in the federal budget.
The federally appointed review panel headed by former Telus executive Janet Yale delivered its 235−page report on Jan. 29, which includes 97 recommendations for changes.
Some of those are relatively simple, such as renaming the Broadcasting and Telecommunications Acts as well as the CRTC.
Others would require major shifts in policy, including one that would require online streaming companies to invest in Canadian content, as domestic broadcasters are already required to do.
The panel suggests the CRTC should be responsible for a new registration process for internet companies such as Netflix that distribute media content in Canada, whether the provider is domestic or foreign.
The new registration regime would require online streaming services that benefit from operating in Canada to invest in Canadian programming.
On Jan. 30, Guilbeault suggested the government favours a move in this direction.
“They are already spending money in Canada, all we will be asking them to do is to do it in a more organized way and to ensure that we have Canadian cultural content that is available for Canadians and for audiences around the world,” Guilbeault said.
“We’re not asking them to do more, we’re just putting in place a system to ensure that it’s done well.”
He said the government will take time to study the panel’s report in−depth before making any concrete commitments for possible reforms. Some changes will come through legislation, Guilbeault said, adding that this could be tricky, as it will require support from opposition parties to pass in the minority Parliament.
That’s why government is also looking at possible regulatory changes that could be decided and implemented more quickly, as such changes would only require the approval of cabinet.
