OTTAWA — Canada’s hotels are demanding the Liberals force digital competitors like Airbnb to collect and remit sales taxes.
The Hotel Association of Canada estimates the federal government is losing out on some $100 million in tax revenues from Airbnb alone, not including other online rental services.
The group has been lobbying the federal government for more than a year to make the services collect and remit sales taxes, but says nothing has happened so far.
Airbnb agrees to collect provincial taxes on short-term rentals in Quebec and B.C., and the company has previously said it would be willing to work with governments on further tax collection agreements.
Hotel association president Susie Grynol says she would like to see the various platforms be proactive in either collecting sales taxes, or helping tax collectors identify those who don’t pay their fair share.
A Liberal-dominated Commons committee has urged the Trudeau government to make online service providers based outside the country collect and remit sales taxes on as part of a series of recommendations to help Canada’s small businesses compete online.