The Globe and Mail reports in its Friday edition that Netflix's commitment to build a production facility in
Canada involved no quid pro quo on the part of the Canadian government to make the U.S.-based streaming giant exempt
from taxes or potential regulations, Heritage Minister Meanie Joly says. The Globe's Susan Krashinsky quotes Ms. Joly as saying:
"There was no negotiation about a tax exemption. That was not part of our discussions. The production house will be paying its income taxes in Canada. There
was no discussion of whether we should or not, legislate digital platform entities. This was not part of the conversation." Ms. Joly has found herself on
the defensive since she announced her vision for the evolution of Canadian cultural policy two weeks ago. A large part of the criticism has focused on the fact that Netflix is not required to pay sales taxes on revenue it draws from Canadian customers,
and that it is not required to dedicate a portion of its revenues toward the creation of Canadian content the way that domestic
broadcasters are. The issue has provided ammunition to the federal NDP, which said this week that it would impose sales taxes on foreign
on-line companies, including Netflix.
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