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As a Canadian registrant, one way you might legally avoid this silly March Hare is to explicitly state on your website and invoice that use of such intangible personal property in Canada is prohibited (or requires an additional fee and the payment of G.S.T.).
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There's an interesting social phenomenon researchers have discovered in online interactions. They've found people often change their standards of politeness and diplomacy when a conversation is happening online, versus face-to-face.
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