On the pessimistic side, if this is really the tax law, then I don't see how the courts can do anything but reinforce it. It's the stupid tax law that needs changing.

If the government were losing money on this, you can bet it would be changed - like the Income Trust tax laws the other day. Unfortunately, the gov't is actually making money on the deal (once again without having done anything to earn it).

>>>One thing you could try would be to prepare a brief for David Emerson - the Minister of International Trade. The trickiest thing would probably be to find the right deputy minister to send it to but maybe your local MP could help you with that.
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>>The letter was sent today.
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>Hopefully, when he or one of his deputies sees that:
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>- e-commerce is a growing and high-profile industry;
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>- the present GST regime for e-commerce providers makes them uncompetitive internationally;
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>- recent court decisions have reinforced this unfortunate situation;
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>then some action will be taken.
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>It's a little unfortunate that the Alberta test case involves "adult content". Hopefully the judges and legislators involved will see beyond that.