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On tax deadline day, hotels urge Ottawa to tax Airbnb

Hotel Association of Canada says taxing online rental company could bring in $100 million a year
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Susie Grynol, president of the Hotel Association of Canada, speaks at a news conference calling on the federal government to take action on tax avoidance by digital platforms such as Airbnb, on Parliament Hill in Ottawa. (Justin Tang/The Canadian Press)

Canada91裸聊视频檚 hotels are asking the federal Liberal government to take a heavier hand with online rental services like Airbnb and force the platforms to collect and remit sales tax.

The Hotel Association of Canada has been lobbying the government for more than a year to make online rental services collect and remit sales taxes, estimating the cost of not doing so to be some $100 million in revenues annually from Airbnb alone, not including other rental services.

Two provinces and several Canadian cities have already taken steps to regulate such businesses.

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But while federal officials have been receptive to the idea and are 91裸聊视频渃ritically aware91裸聊视频 that there is an issue they need to tackle, they are struggling to find ways to tax digital services, said association president Susie Grynol.

91裸聊视频淭he government has a responsibility to keep up with the times and other governments around the world have done so, so it91裸聊视频檚 time for Canada to take some action as well,91裸聊视频 Grynol told a news conference Monday.

Pressure from domestic businesses has been building on the Trudeau government to apply sales taxes to online services providers like Airbnb and Netflix, arguing that different tax treatments create an unequal playing field.

Last week a Liberal-dominated Commons committee urged Ottawa to make online service providers based outside the country collect and remit sales taxes on as part of a series of recommendations to help Canada91裸聊视频檚 small businesses compete online.

The international trade committee91裸聊视频檚 report on e-commerce issues recommended the government apply sales taxes 91裸聊视频渙n tangible and intangible products91裸聊视频 sold through online platforms, and tax the profits from those sales.

During question period Monday, Finance Minister Bill Morneau said Canada was working with other OECD countries to co-ordinate tax policies so internet giants are appropriately taxed.

Airbnb agrees to collect provincial taxes on short-term rentals in Quebec and B.C., and the company has previously said it would be willing to work with governments on further tax collection agreements.

In the rest of the country, it is up to hosts to collect sales tax and provide it to the federal government. The company has partnered with the Canada Revenue Agency to increase tax compliance, last year providing statements of earnings and educational materials to its more than 55,000 hosts.

Grynol said she would like to see the various platforms be proactive in either collecting sales taxes.

Ahead of this year91裸聊视频檚 budget, the company asked the Commons finance committee to recommend the Liberals 91裸聊视频渁pply a light regulatory touch91裸聊视频 to the online rental sector, noting that most of its hosts 91裸聊视频渁re home sharing on an occasional basis.91裸聊视频

As for taxation, the committee submission asked the Liberals to take a 91裸聊视频減rogressive and forward-looking approach.91裸聊视频

91裸聊视频淎irbnb helps to democratize revenue by generating new tax revenue through hotel and tourist taxes that governments can dedicate to existing critical services, or governments can work with us to develop funding and tools to support new programs that help their middle-class citizens and address local social challenges.91裸聊视频

Jordan Press, The Canadian Press

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