ITI: Canada’s 5% Tax Targets U.S. Companies, Threatens U.S.-Canada Economic Relationship
WASHINGTON – Today, global tech trade association ITI reacted to Canadian Radio-television and Telecommunications Commission (CRTC) announcement (s’ouvre dans un nouvel onglet) requiring streaming providers – including music, video, and other multimedia forms – to contribute five percent of Canadian revenues to fund Canadian content creation without being able to access these funds in the same manner as broadcasters.
“While Canada’s measure is intended to encourage domestic content, in practice, it will stifle Canada’s policy goals and regional collaboration amid a troubling regulatory environment,” said ITI Senior Director of Telecommunications Policy Katie McAuliffe. “Importantly, CRTC must provide clarity on what legally constitutes Canadian content and assess the value of contributions to Canadian content global streaming companies already make before instituting a new revenue structure. This development, in addition to the Digital Services Tax (s’ouvre dans un nouvel onglet) and the Artificial Intelligence and Data Act (AIDA), unfairly targets U.S. companies and seriously threatens the U.S.-Canada economic relationship. We call on Canada to engage with the Office of the United States Trade Representative and industry in a meaningful way before this measure advances in the regulatory process.”
Read more on CRTC’s announcement here (s’ouvre dans un nouvel onglet).
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