OTTAWA — In December, the Hotel Association of Canada (HAC) called on the federal government to follow through on the Standing Committee on Finance’s Pre-Budget Consultations Report, which included several recommendations aimed at levelling the playing field in regards to tax fairness.
“Corporations that operate in Canada through a digital presence should be obliged to pay corporate income tax on their Canadian profits like any other brick-and-mortar corporation operating in Canada,” says Alana Baker, director of Government Relations, HAC. “Online short-term-rental platforms should have the same taxation responsibilities as all other Canadian businesses. With this report, the Government of Canada is on the right path to creating a fair, competitive environment for all businesses operating in Canada.”
As part of the Pre-Budget Consultations Report, Recommendation 21 would strengthen the Income Tax Act to address abusive tax avoidance and compel disclosure. Short-term rental platform companies should be required to issue an annual information slip on gross earnings to hosts, with a copy sent to the Canada Revenue Agency.
The report also shows a commitment to addressing labour shortages, as well as the Canadian tourism industry as a whole. Recommendations 38, 39, and 44’s promotion of tourism careers and training — particularly in under-represented labour pools — will help create long-term, sustainable jobs for Canadians.
“Budget 2019 will hopefully follow through on these recommendations and foster a fair, competitive playing field for all,” Baker adds.