Quebec wants Netflix to pay provincial sales tax

If QuebecFinance MinisterCarlosLeitaohas his way, streaming giant Netflixcould soon have to collect Quebec's sales tax (QST) from its customers.

But Leitao says before that can happen, he first needs to know the details of the deal that Ottawa has struck with Netflix.

• Joly tries to reassure Quebec on Netflix deal

Last week, the online entertainment company agreed to spend$500 million over five yearson Canadian content, in exchange for not having to charge its customers the federal goods and services tax (GST).

"We need to know why the federal government may exempt this one company:what kind of an agreement was reached with this company?" Leitao said.

He saidit's very odd that Ottawa would exempt acompany from paying atax that all companies are expected tocollect.

Quebec politicians of all stripes agree with the Liberal finance minister.

A vote in the National Assembly Tuesday on a motion demanding that all foreignweb-based companies collect QST from theircustomers passed unanimously.

Artists in Quebec are also unhappy with the move.

Sophie Prgentof the Union des Artistes said Heritage Minister Mlanie Joly didn't realize the angerher deal with Netflix would cause, especially among the country's artistic class.

"Maybe she underestimated the furor in the industry, on the ground," she said.

"I think (Joly) genuinely thought the deal with Netflix would assuage our concerns, but it did the opposite. The fire has spread all over."

The Union des Artistes represents roughly 13,000 French-speaking artists across the country.

President of retail giant Simons agrees

Peter Simons, president and CEOof theQuebec City-based retail chain Simons, said passing that motion is a first step towardmaking online companies collect taxes, just like all other retailers.

Simons saidallowing foreign app-based companies to operate without doing so makes no sense and is unfair.

"If everyone has to collect sales tax in the old economyand that's how we've chosen to finance infrastructure, education for our childrenthen everyone has to do it," he said.

He saidone way to get customerson board might be to lower federal and provincial sales taxes.

Simons saidthe current discussion around the fiscalresponsibility of web-basedcompaniesis a good timefor the government to adapt its financial regulations tothe reality of the newonline economy.

"We really have to ensure we're taxingwhere consumption is happening," Simons said. "Our tax laws were formed about 100 years ago, and I really think it's a moment for a lot courage and vision to look forward into the 21st century."

Simons saidoperating in Canada is a privilege, and online companies shouldn't be allowed to skirt their responsibilities due to outdated fiscal policies.