nanog mailing list archives

Re: Qu??bec Sales tax


From: Alain Hebert <ahebert () pubnix net>
Date: Wed, 28 Mar 2018 17:45:26 -0400

    Same deal as Paypal and EBay.

    Netflix dropping their services in CDN/QC only serve <Yuo know who> attempt at making yet another market grab.


    At the end Netflix may just charge the Tax and funnel it to the govt.  They'll still be making a bundle.

        ( And with all the hardware already deployed locally at the many exchanges ... )


    Now if we can only break that damn 1930's licensing scheme so that we can gain access to more content...  Kinda annoyed that <You know who> is hogging all the content with their vertical licensing agreements.

-----
Alain Hebert                                ahebert () pubnix net
PubNIX Inc.
50 boul. St-Charles
P.O. Box 26770     Beaconsfield, Quebec     H9W 6G7
Tel: 514-990-5911  http://www.pubnix.net    Fax: 514-990-9443

On 03/27/18 18:21, Ken Chase wrote:
If Netflix has no physical presence in Quebec, what the lever are they going
to use to force this? A lawsuit in <state of netflix incorporation> in the
US? What court is going to entertain a foreign jurisdiction's tax claim in
their court? And how would that be then enforced?

Canada has tried this before:

https://www.ctvnews.ca/business/u-s-judge-puts-halt-to-canadian-court-order-for-google-to-delist-search-results-1.3663055

Court file: https://scc-csc.lexum.com/scc-csc/scc-csc/en/item/16701/index.do

Im a big fan of Canada standing up for its sovereignty (I live here), but nice
try.

/kc


On Tue, Mar 27, 2018 at 06:10:51PM -0400, Jean-Francois Mezei said:
   >Not quite networking but probably relevant.
   >
   >The Canadian province of Qu??bec just introduced a new budget with
   >basically the intent to force foreign digital companies who sell
   >services to Qu??bekers to collect the local value added sales tax and
   >remit those to the QC government.
   >
   >The goal is to capture tax from Netflix who has so far escaped taxation
   >in Canada by having no legal/physical presence in Canada, no cache
   >servers of its own etc. Netflix does not currently collect province
   >information from customers (or any address info for that matter).
   >
   >They based many of their arguments on an OECD study (which ironically
   >the Canadian federal government says is not completed yet (as excuse for
   >not proceeding with similar tax).
   >
   >So foreign digital services will be required to require subscibers enter
   >AND VALIDATE their address so that they have an accurate province field
   >(validation remains to be finalized), and IF they sell more than $30,000
   >to Qu??bec residents, will be required to self register with QC
   >government to collect local sales tax (and remit to QC government).
   >
   >The Qu??bec budget expects that validation of address will be based on IP
   >address geolocation or custoemrs send paper bills to prove place of
   >residence.
   >
   >(Although requiring full address/phone number and sendint this to credit
   >card network for authorization might constitute a better means to
   >validate address).
   >
   >I suspect the big winners will be VPN services in the USA :-)
   >
   >Because many ISPs span multiple provinces, IP geolocation generally
   >points to their HQ address, not necessarily the province of the
   >subscriber. (This is especially true for DSL in bell Canada wholesale
   >where currently a single point of connection between Bell and ISP allows
   >full reach of all of its DSL territory in QC/ON. For Cable, ISPs require
   >different IP pools for Rogers in Ontario and Vid??otron in Ontario (with
   >a couple of exceptions where Vid??otron has service in a couple fo
   >Ontario towns). In Western Canada, things are harder as Shaw serves BC,
   >AB, SASK and MB.

--
Ken Chase - math () sizone org Guelph Canada



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