Description: Canada’s new Auditor General, Karen Hogan, appeared before Parliament’s Public Accounts Committee on Tuesday to discuss her Office’s 2019 report on e-commerce. In a nutshell, transactions with foreign vendors are not being taxed correctly. Not only has this placed Canadian vendors at a disadvantage, it has cost our public purse $247 million.
Date: November 18, 2020
1) Have you engaged in e-commerce with a foreign-based entity? Do you know if the proper sales taxes were charged by the vendor?
2) What do you think Canada can do to fix this problem?
3) Chapter 10 in Wiley’s Financial Accounting: Tools for Business Decision-Making talks about liabilities for various taxes. What type of liabilities should these foreign vendors be setting up on their balance sheets if they start collecting these taxes?