17 August 2018

In April, a Commons committee made Ottawa require from online service providers located outside Canada, to remit sales taxes as part of the recommendations aimed at supporting Canada’s small businesses.

According to federal officials, they are considering the ways to regulate online service providers, but it seems they don’t understand how to do it.

According to the Hotel Association of Canada, it’s necessary to require online businesses to also provide all the data about home-renting activity. That way tax authorities will be able to force those with high incomes to pay taxes just like hotel chains.

However, the industry group doesn’t think the rules should focus on home owners who rent out a room or unit for only a few nights a year. It’s more important to pay attention to those who rent out several homes or units for months in a row as part of a larger commercial transaction.

“We are not against Airbnb or competition. We believe competition is good. We want to reach fairness and a level playing field,” – noted Alana Baker, the association’s director of government relations.

According to Airbnb, almost 80,000 people offer places to rent in Canada, and the average income is about $5,500 per year.