News release

Revenue Minister announces release of Advisory Committee report on Electronic Commerce

Ottawa, April 30, 1998...The Honourable Herb Dhaliwal, Minister of National Revenue and M.P. (Vancouver South-Burnaby), today released the Report of the Minister's Advisory Committee on Electronic Commerce.

The report is an important component of Canada's emerging electronic commerce strategy being developed by Industry Canada. The Honourable John Manley, Minister of Industry, joined Mr. Dhaliwal today for the report's release.

The Revenue Minister's Advisory Committee, which is made up of representatives from both the private and public sectors, examined the growth of electronic commerce in commercial and financial activities and its implications on tax administration both domestically and internationally.

"Increased use of electronic systems in commercial activities, including the Internet, makes it important that Revenue Canada review the administration of the tax system to ensure that tax laws are applied appropriately in an electronic commerce environment. The Department wants to ensure that the integrity of Canada's tax base continues to be maintained," said Mr. Dhaliwal.

The report makes a series of recommendations on what can be done to ensure that electronic commerce does not result in any undue erosion of tax revenue, and that appropriate revenues from electronic commerce activities are collected. It also calls for a progressive approach to electronic commerce, one that would see Canada build on its already recognized expertise in advanced computer and electronic data activities.

Industry Canada is presently developing a domestic and international strategy for electronic commerce which is an integral component of the Government's Connecting Canadians initiative. "We are engaged with other federal departments, provinces, territories, and the private sector on a comprehensive agenda to build trust, define the rules and provide access to the social and economic benefits electronic commerce provides," said Industry Minister John Manley.

"Taxation is one of the issues that makes up part of the domestic agenda and this report will be of great assistance in future discussions with the private sector and other levels of government" stated Mr. Manley.

The report will be the subject of ongoing consultations with industry, professional organizations, and government over the coming months. "By working closely with our partners in the private sector, we will aim to ensure that Canada derives the full benefits of electronic commerce and that it plays a leading role in establishing a proper and consistent tax environment for its growth internationally," said Mr. Dhaliwal.

From October 7 to 9, the Organization for Economic Cooperation and Development (OECD) and the Government of Canada will hold a ministerial conference on electronic commerce in Ottawa. The report will provide a good basis for discussions at the conference where governments and the private sector will have the opportunity to work on establishing a stable environment for global electronic commerce. The Ottawa conference is expected to be a major milestone in the international community's efforts to maximize the economic and social benefits offered by electronic commerce.

The Advisory Committee's report, this news release, and its accompanying background documents are available on the Internet at /ecomm.

Printed copies of these documents are available from:

Distribution Operations
Room 114
555 MacKenzie Avenue
Ottawa, Ontario
K1A 0L5

Tel: (613) 941-2406

Fax: (613) 941-6206

Written comments on the report can be sent to:

Director General
Audit Directorate
Verification, Enforcement, and Compliance Research Branch
123 Slater Street, Room 200
Ottawa, Ontario
K1A 0L5

For media information, contact:

Michel Cléroux
Media Relations
Revenue Canada
(613) 957-3504

Jennifer Sloan
Press Secretary
Minister of Industry
(613) 995-9001