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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.

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