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Taxation

The Dilemma of Taxing Online Purchases

When Canadian consumers buy goods or services from retailers located outside their province, or outside Canada, it is very difficult to collect sales taxes on these transactions. Taxes on a certain portion of such purchases in other provinces and countries therefore go uncollected. The fact that these purchases are less expensive puts local online retailers, as well as brick-and-mortar retailers, at a disadvantage, as they are faced with a kind of unfair competition. Governments are also deprived, at first glance, of substantial revenues.

Viewpoint – Investing in Montreal: A Tax Burden That Ranks among Canada’s Highest

When a company seeks a place to invest, it needs to take into account the investment-related tax burden to be sure of choosing the most favourable location. Taxes that are too high in one city will lead companies to turn to other cities, bringing with them the new jobs and economic spillover that accompany their investments. Does the City of Montreal do everything it can to entice investors?

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