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Canada to tax legal digital music downloads
Friday, October 19, 2007 - 01:11 PM EST

"Canadians may soon pay a small tax on every legal music store download, says a new measure sanctioned by the Copyright Board of Canada. Requested by the Society of Composers, Authors and Music Publishers of Canada (SOCAN), the tax would apply at least 2.1 cents to every individual song download and 1.5 cents per track for complete albums. Subscription download and streaming services would themselves be charged between 5.7 and 6.8 percent of a user's monthly fees. Minimum fees would also apply for every larger download or subscription," MacNN reports.

"The surcharge would help compensate artists for piracy, according to SOCAN's reasoning. The publishing group draws similarities between this and a 21-cent fee already applied to blank CDs in the country; the right to copy a song from an online store demands the same sort of levy applied to copying a retail CD, SOCAN argues," MacNN reports.

"The tax may have a significant impact for online stores such as iTunes and Canada-based Puretracks, which will have to factor the amount both into future and past sales. The new tax would be retroactive to January 1st, 1996," MacNN reports.

More in the full article, including links, here.

MacDailyNews Take: Hosers, eh?

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Oct 19, 07 - 12:16 pm Comment from: mac user 47

Canadian taxes not high enough yet?

Oct 19, 07 - 12:17 pm Comment from: Canadian

This is F****ING STUPID.
If people are buying the songs off iTunes, they're NOT PIRATING.
This is making the honest pay for the cheap P2Pers.
Idiots.

Oct 19, 07 - 12:17 pm Comment from: Terrance and Phillip

Oh Phillip?

Yes Terrance.

Why do us Canadians who play by the rules have to pay for those who break the rules?

Sort of encourages the honest people to steal doesn't it Terrance?

Let's go tell the Prime Minister about this injustice.

How will we get there Terrance?

The fart mobile of course Philip!

Oct 19, 07 - 12:17 pm Comment from: coolfactor

Yay for us. Boo.

I still find it ironic how some people justify illegal downloading because of the fee paid on recordable media. That just doesn't add up in my brain.

Oct 19, 07 - 12:18 pm Comment from: flec65

A big F**k You SOCAN!
So I chose to buy my digital download - with DRM must I insist - and now I'll have to pay a tax on these because of those who don't? What? This tax is retroactive to 1996? This is a joke isn't it? You want me to go back to Limewire or what?

Oct 19, 07 - 12:20 pm Comment from: Jeff from Canada

OK so punish the people that actually purchase the music, WTF :-(, when will these frigtards get a clue?

Oct 19, 07 - 12:26 pm Comment from: MACanadian

This is BS. As if we are not already hampered enough by the CRTC now SOCAN wants to push their weight around? Utterly stupid as it'll drive people to pirate if you charge legitimate buyers a tax for their music.

Oct 19, 07 - 12:27 pm Comment from: starving socan member.

as a starving socan member i approve.

Oct 19, 07 - 12:31 pm Comment from: Jack

What is the big deal? iTunes charges sales tax on downloaded content.

Oct 19, 07 - 12:32 pm Comment from: Bunson Honeydew

That sucks, eh!

What Hosers!

Oct 19, 07 - 12:33 pm Comment from: Bunson Honeydew

(sorry, missed the MDN take)

Oct 19, 07 - 12:37 pm Comment from: Randian

Apple (and others?) will have to pay this tax RETROACTIVELY back to 1996!

1996!

Haul up THOSE records!

Oct 19, 07 - 12:37 pm Comment from: KA

Copyright laws here in Canada are so messed up. The blank media levy has to be one of the most illogical and unfair taxes we north of the 49th have to bear. This proposition is even more ridiculous. A piracy tax on legally purchased media? Come on.

Oct 19, 07 - 12:39 pm Comment from: McFly

Did Queen Elizabeth approve this?

Oct 19, 07 - 12:41 pm Comment from: Subculture

SOCAN can suck my balls. I pay for my music. If you want to charge me again, I'll walk. Then you get no money.

MW: low, as in SOCAN is a bunch of lowlifes.

Oct 19, 07 - 12:46 pm Comment from: KA

starving socan member
Are you starving as a result of piracy or because nobody wants to listen to your music? If you are starving because of piracy, then there must be a better way to solve the problem besides taxing your honest fans for the criminality of others. Laws like this as well as the blank media levy only allow those who pirate music to justify their actions. "I paid for the music when I bought a stack of blank CDs".

Oct 19, 07 - 12:47 pm Comment from: Flynn

This is brilliant, a new income stream. Think of the possibilities.

Car tax because of auto theft.
Clothes tax because of Shoplifters.
Food tax because fat people eat too much.

Oct 19, 07 - 12:48 pm Comment from: Ray

Welcome to Hilary Clinton world!!! Where socialism is a bad word (wink, wink).

In this world the innocent suffer because of a few bad people.
People steal music?....Have the honest ones pay taxes. Need to raise money for free illegal immigration....go after smokers!!!!
Yes in Hilary world everything is politically correct and your checking account is for temporarily holding governement funds**.

Look out for Hilary world coming soon to you!!!

**Hilary world brings one king size jar of K-Y Jelly and a pamphlet on how to clean and care for your anus after tax season.

Just my $0.02

Oct 19, 07 - 12:49 pm Comment from: 2 Cents

Never underestimate the stupidity of governments. Perhaps the citizens of Canadian should fund a remedial course in Economics 101 for their government officials: The higher the price, the lower the demand, and the lower the price, the higher the demand. So, if you increase the price of legal downloads vs. the FREE price of illegal downloads, guess how much more money you will be raising for the record companies? Lets all help them out and say it together... NONE! Or less than none. Meanwhile you will be the cause of more people justifying their decisions to download music illegally. Ah but this is typical government in action. I am sure a few officials got some payola for this.

Oh, and don't tell me this is going to the artists - the record companies give almost nothing to them, it all stays in their greedy-pants wallets.

Oct 19, 07 - 12:52 pm Comment from: FUDsucker Proxy

@Flynn

How about a smart tax to pay for idiots like you?

Oct 19, 07 - 01:00 pm Comment from: Bandit Bill

"The tax may have a significant impact for online stores such as iTunes and Canada-based Puretracks"

...but it will have little or no impact on the number of illegal downloads.

Oct 19, 07 - 01:02 pm Comment from: Hoser

Dear SORCAN,
This new tax law on legal music downloads (i.e. from legitimate distributors such as iTunes and Puretracks) is disgusting.
Why should I be made to pay for illegal downloads committed by someone else?
I'm buying music legally, and I assume the distributor and music publishers are paying royalties to the artists. Why do I have to now pay twice with this new tax???
This is a real legitimate consumer rip-off what you're done and I can't see how anyone would support such idiocy.
From now on, I should just steal the music...
Thanks for helping to destroy the emerging, Canadian digital music download industry!

Oct 19, 07 - 01:03 pm Comment from: en

I just do not see how you can tax for past sales. The tax is to the person not to the supplier. So is Apple to send bills to every past canadian sale????

Also, the song tax on blank cds. This must really suck for companies and people that buy cds for data backup. !!!

Wait, if I sell cds that are not finalized but have one byte of data on them, then would the tax not apply??? See the cd would not be blank. grin

en

Oct 19, 07 - 01:09 pm Comment from: Tony

I guess they're trying to provide a little less motivation to buy legal DRM-laden tracks?

Oct 19, 07 - 01:26 pm Comment from: Hilken

Ok, back to pirating for me!

Oct 19, 07 - 01:37 pm Comment from: Craig

That is pure insanity.

Oct 19, 07 - 01:38 pm Comment from: Macintosh Sauce

Am I ever glad I left Canada - land of the perpetually taxed. hmmm First the Canadian Government puts a tax on blank CD-R/RWs and DVD+-R/RWs. Now they want to tax LEGAL downloads? That is bloody asinine!

The Canadian Government can kiss my Royal Canadian Ass!

Oct 19, 07 - 01:49 pm Comment from: Beryllium

Compensate artists for piracy? More likely the big label companies. And isn't it brilliant to punish the law abiding for the crimes of the scofflaws? That's a good way to encourage piracy! Fools!

Oct 19, 07 - 01:55 pm Comment from: @KA

contrary to popular belief, not all socan members are rock stars (or wannabe rockstars) who are trying to "make it big" with a "cd"

perhaps i work for an orchestra?
Or any number of other non-cd related lines of work
in the Canadian "Music" business.


Needless to say, there are already taxes like this on other
things in Canada, this was inevitable.

Oct 19, 07 - 01:56 pm Comment from: Big Al

This is what SOCAN wants, not what the Canadian Government will do.

As a music lover and tax payer, a tax payer that pays way more than my fair share, I want $0.25 per track, $2.50 per album, DRM free, digital downloads from iTunes at 256 kbps AAC.

SOCAN is not going to get what it wants, anymore than I'm going to get what I want.

SOCAN wants the money to offset piracy.

It's only fair.

I want the cheap downloads to offset the absolute loads of crap that SOCAN members produce.

It's only fair.

Oct 19, 07 - 01:59 pm Comment from: Danno Bonano

First off, the Canadian gov't already taxes me on how many times I visit the restroom in a day.

Second, it would be 15 cents per album or 2.1 cents per song (based on 10 songs per album @ current 21 cent CD tax = 10/.21 = 2.1). Apple will most likely absorb this cost to keep the price at $0.99 per track and $9.99 per album.

Not unexpected as this has happened on all our music we've bought on tape or CDs.

The other incorrect part of the article is the "retroactive" tax back to 1996. First, the net started in 1994. Don't think there were many digital downloads back then. Second, the govt generally can't go back more than 7 years. Third, they can't just impose a back tax. The music digital distribution companies would have need to be notified that the tax could be imposed. Then from THAT point forward, it would be possible there could be back taxes. Fourth, If Apple had been notified, they would have already been setting that fee aside. Consumers would not be responsible to pay. Only Apple. Bogus bogus bogus unless the Canadian government notified Apple previously OR if Apple has violated any EXISTING tax laws.

Oct 19, 07 - 02:58 pm Comment from: jeffr

it seems SOCAN know exactly what they are doing, the last time I looked of the over $80 million collected from media tax they had disbursed less than $10 million, and the vast majority of that wentr to the likes of Celine Dion and Nickleback and not the starving artist they say it's to support. These guy's are looking after themselves as they get to keep a percentage of what they collect, tell me again the motivation for this?

jr

Oct 19, 07 - 03:10 pm Comment from: Galloway

Wow. The ever stupid politician never ceases to amaze. Instituting a tax to compensate for piracy that will, well, inevitably <increase> piracy. That's fucking brilliant.

"Two things are infinite: the universe and human stupidity; and I'm not sure about the the universe."
-Albert Einstein

Oct 19, 07 - 04:02 pm Comment from: Brau

Only our myopic Canadian copyright board would agree to tax those who are already freely making a choice to pay for what they could otherwise get for free on any P2P. I am a SOCAN member, but only because I simply must to have my content copyrighted; it's like joining a union to get a job - you have no choice.

Oh, and to those "starving artists" who agree .... There's a reason nobody's ever heard of you - you're not good enough for people to even want to steal your music. There are no cases of any song becoming hugely popular while the artist starves. I do however know of one musician friend who sold over 700,000 records and ended up with $0 thanks to record companies. Who's the real thief?

Oct 19, 07 - 05:56 pm Comment from: GizmoDan

"Canadians may soon pay a small tax on every legal music store download," . . .

If you can figure out a way to download a store, more power to you.

Oct 19, 07 - 05:56 pm Comment from: nobodi

Lucky for us Yanks that the U.S. Constitution specifically forbids retroactive taxes.

Although that hasn't stopped some from trying.

Oct 19, 07 - 06:07 pm Comment from: nobodi

And another thing...

How do you tax something before it even existed? Just how many legal, digital music download sites existed in 1996? And, more importantly, how many of them are still around to actaully pay any such tax.

Not many, I'll bet.

Just one more example that politics (regardless of national origin or party affiliation) is the provenance of the brain dead.

Oct 19, 07 - 06:47 pm Comment from: The Other Steve

Time for someone to dump some tea into the harbor.

Canada, it's your turn!

Oct 19, 07 - 08:01 pm Comment from: neomonkey

I'm sure glad conservatives are in charge in Canada. They even want to start arresting evil dope smokers. Where is Dominic DaVinci when we need him?

Oct 19, 07 - 09:47 pm Comment from: macbones

Retro active tax? Wow. That makes me want to do business in THAT country. NOT.

Oct 20, 07 - 09:35 am Comment from: MacSheikh

"The surcharge would help compensate artists for piracy, according to SOCAN's reasoning."

Are you kidding me? Can these people really get away with this stupid crap? Ridiculous...

Oct 20, 07 - 09:50 am Comment from: Mungo

Most industries that I know of make up the cost of stolen goods by raising their prices, not by getting their governments to levy a tax.
This reminds me of the various stupid "blank tape" taxes that have been levied over the years by various governments on behalf of the entertainment industry. It's special interest BS.

Oct 20, 07 - 12:05 pm Comment from: alansky

Retroactive to 1996??? They can't be serious!!!

Oct 20, 07 - 12:26 pm Comment from: Swing Geezer

Point 1: What the heck does Mrs. Clinton have to do with this? Only in the US would someone as conservative as Hillary be called Liberal. I have the utmost love and respect for Americans but, boy, you folks really need to give your collective heads a shake. Both polical stripes are living in a climate of fear of each other and you are really not very far apart in ideologies!
Point 2. SOCAN - don't get me started - Oops too late:
*large meeting room full of lawyers and accountants* "OK folks, I have an idea to make money. Let's convince all the restaurants record stores, shopping malls, and music clubs that they have to pay us money which we will distribute to musicians. After we have paid ourselves, of course" - "Nudge Wink Nudge Wink Nudge Wink!! "Oh and we'll sue for non-payment and pay ourselves the legal fees." Pretty Cool Eh?

*Rant Mode* Toggle Off! grin

Oct 20, 07 - 07:28 pm Comment from: socan sux

Well....this just proves how unprogressive Canada actually is...I mean...copyright laws in Canada do not make it a crime to download from Limewire or Kazaa....does Socan know that....? They are a bunch of stupid dumb farmers who live off of government grants...

Oct 23, 07 - 01:30 pm Comment from: Andy C.

Um, as some have already pointed out, this is not being passed into law, it's merely a request that is being put forth. I highly doubt it will actually be passed into law, especially the part about retroactive charges.

I agree with everyone who thinks this is the stupidest idea ever.

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