It appears Canada's 'Netflix tax' could see subscribers emptying out their pockets. The federal government's recent announcement to begin taxing digital services could hit closer to home, experts believe.
In a speech from the House on Monday, Finance Minister Chrystia Freeland declared that the country has plans to tax big players, including Netflix.
Could be made in five years
Joe Micallef, a KPMG tax partner, said that Canadians will probably have to pay out of pocket for those taxes that will be recuperated by the government, according to Kelowna Now.
"Right now, the way in which they’re delivering their services, they’re not responsible for the collection," he said.
"And so, effectively, it would mean that these charges would be appearing on [their] invoices."
The tax would also apply to all foreign companies working outside of Canada who have customers from the country without paying their dues.
Apparently, since Canadian companies pay taxes it is only fair everyone outside of the country does the same.
The list could include companies like Amazon, Spotify, and even software applications.
"Canadians want a fair tax system where everyone pays their fair share so that the government has the resources it needs to invest in people and keep our economy strong," Freeland added in her speech.
What's more, this brand new tax could bring in up to $1 billion in five years, according to CBC News.