A new tax on tech giants could bring in “billions” for Canada – but businesses say it’s a bad idea.
Global News’ Post
More Relevant Posts
-
Journalist Photo/Graphic/Video - Journalism Teacher & Internship Coordinator at the University of Montreal | Passionate about premium journalism, innovation and artificial general intelligence.
🤑 Is Canada's Tech Tax Setting the Stage for Economic Conflict with the U.S.? Canada is set to implement a 3% tax on the digital services revenue of major tech companies starting in 2024, targeting firms with annual worldwide revenue over about C$1.1 billion. Despite U.S. objections and threats of trade reprisals, Canada proceeds with the tax, citing delays in a global tax treaty through the OECD. U.S. officials have warned of immediate retaliation if Canada moves forward, sparking tensions between the two nations. Finance Minister Chrystia Freeland has said Canada would not enact the tax if a global tax treaty through the Organization for Economic Co-operation and Development is implemented, but so far that treaty has not been ratified by the U.S. The tax, estimated to generate C$7.2 billion over five years, is part of Canada's efforts to align with other countries like the UK and France already having similar taxes. The tax, affecting companies like Alphabet Inc. and Meta Platforms Inc., will apply to revenues above C$20 million from Canadian users. #Canada #US #Tax #Tech #Companies #Threats #Retaliation #Strategy
Canada to start taxing tech giants in 2024 despite US complaints
techxplore.com
To view or add a comment, sign in
-
The latest from the Globe and Mail's business commentary, by Michael Geist: There’s a global plan to tax Big Tech. Why did Canada act alone with digital services tax?. A new Digital Services Tax targeting Big Tech is a high risk move by the Canadian government, which had abandoned an international plan.
There’s a global plan to tax Big Tech. Why did Canada act alone with digital services tax?
theglobeandmail.com
To view or add a comment, sign in
-
The Canadian government recently imposed a 'digital services tax' on the big guy which will hurt the little guy. It has become a recent global trend in the digital economy for countries to impose taxes on multinational tech companies based on their digital presence rather than physical presence in a certain jurisdiction. So Canada decided to join the party. The tax came into effect last week, but it will be backdated to be effective starting in 2022. Retroactive taxes is a crazy concept in itself. Canada's new tax is imposed on digital service revenued earned by the large multi-national foreign technology companies. It's a 3% tax based on revenue earned from each company's Canadian users. The primary companies impacted are the large U.S. tech companies (Google, Facebook, Amazon, etc.). Many expect the U.S. government to retaliate by imposing large tariffs on Canadian goods exported to the U.S. This will negatively impact Canadian small businesses and consumers. Advertising on these platforms will cost more. The tax will be passed on to the consumer. This tax needs to be repealed. It seems to hurt mostly everyone, other than the government of course.
Canada defies U.S. retaliation threat, enacts digital-services tax
financialpost.com
To view or add a comment, sign in
-
I write about the disruption of the Nation-States by the Internet, and how to transform from a Mono-Country to a Netizen Without Borders
The #Internet is reshaping tax landscapes, causing governments to scramble. A 0.1% tax hike in Norway led to a millionaire exodus, draining substantial tax revenues, because people have never been so mobile. Big Tech like #Google leverages global footprints to minimize taxes, while countries struggle to catch up with outdated tax laws that stop at borders, while the Internet doesn't. Case in point: France chased Google for €1.6B in back taxes, only to face defeat in court. Why? Outdated laws met digital behemoth. E-commerce has also opened a Pandora's box of VAT fraud on physical products, creating a taxing puzzle for governments worldwide. The hurdle of collecting tax debts across borders is a silent battle many nations face, tightening the fiscal squeeze. Only 4 EU countries manage to collect more than 10% of the sums claimed by another member state. Even in a tight union, performance is abysmal. From Norway's millionaire migration to Google's French tax feud, the narrative is clear: the internet is a game-changer in tax collection. The taxpayers have grown wings Delve deeper into how the digital realm challenges tax norms, and what this means for nations globally. Must-read for digital nomads and people interested in the Internet's disruption of governments! https://lnkd.in/dvAtE2dP #TaxOptimization #TaxCompetition#TaxFraud #VATFraud #TaxCollection #DigitalDisruption
Where it hurts most: how the Internet makes it harder for governments to collect taxes
disruptive-horizons.com
To view or add a comment, sign in
-
The good, the bad, and the quirky!🤓 Let's Compare Corporate Tax Rates within the EU 🌍💼 The corporate tax landscape varies greatly from one country to another. Lower rates can attract business investment and promote economic growth, but each nation has its unique tax structure and advantages. 🇩🇪 Germany: As Europe's economic powerhouse, Germany offers a competitive market and a skilled workforce. Germany is famous for its 'Mittelstand' - a thriving mid-sized business sector. Downside: The corporate tax rate is the second highest in the EU at 29.9%. 🇳🇱 Netherlands: With its business-friendly policies, the Netherlands is a logistics and connectivity hotspot. Fun Fact: It's home to one of the world's busiest ports! The corporate tax rate is above the EU average of 21.7% and hence an impediment for entrepreneurs. 🍀 Ireland: The vibrant tech ecosystem in Dublin, often referred to as the 'Silicon Docks,' is home to the European headquarters of many tech giants. Insight: Did you know, Ireland is home to the world's second-largest exporter of computer and IT services? Known for its 12.5% corporate tax rate, Ireland is a low-tax haven in the EU. #CorporateTaxes #TaxStrategies #GlobalBusiness"
To view or add a comment, sign in
-
July 27, 2023 - Canada’s update on digital tax. This article explains three points: global pressure on Canada to back down from its plan for a digital sales tax; other factors making this a complex issue; and Finance Canada’s resolve to stay on course. #internationaltaxation #transferpricing #taxaudit
Canada’s plans for digital services tax could break 'fragile' global deal: experts
nationalpost.com
To view or add a comment, sign in
-
Meta, Google face digital tax in New Zealand beginning in 2025 | For all your international tax needs, contact the professionals at MKS&H today! #MKSH #InternationalTax
Meta, Google face digital tax in New Zealand beginning in 2025
deccanherald.com
To view or add a comment, sign in
-
International Sales & Market Development B2B - Market positioning - Research of first customers - International Trade Shows & Fairs
Canada’s promised digital services tax targeting the world’s biggest tech and social media giants will bring in double the amount of revenue as previously estimated, according to the Parliamentary Budget Officer. In a report released Tuesday morning, the PBO said the tax would “increase federal government revenues” by $7.2 billion over five years. Previous estimates put that number at $3.4 billion over five years. The U.S. has warned of retaliation if Canada goes ahead with the digital services tax before an OECD deal is in place. But it’s unclear whether that stance will change now that the United States confirmed Monday it will itself miss the OECD-set deadline to sign the treaty. #Canada #tax #digital #services #could #generate #up #to #7billions #over #five #years
Canada's tech tax will 'increase federal government revenues' by $7.2 billion
nationalpost.com
To view or add a comment, sign in
-
The Government of Canada recently shared a comprehensive document explaining the proposed Digital Services Tax Act. Although no legislation has been passed yet, the government is providing guidance on how the potential law would be interpreted if it comes into effect next year; and has received criticism from business groups and the U.S. government because it proposes a retroactive 3% tax affecting a broad spectrum of businesses. While the digital services tax (DST) is often portrayed as a tax on large tech companies, the Canadian version extends beyond just companies like Google and Meta (Facebook), potentially affecting major Canadian retailers as well. https://lnkd.in/evcCwhtM
Canada Moves Forward With New Tech Tax
https://www.nytimes.com
To view or add a comment, sign in
-
The New Digital Services Tax Controversy Countries like the U.K. and France already have a #Digital #Services #Tax (DST) in place, generating revenue to support their citizens, so why would Canada lag behind? Government announced back in 2020 that a digital services tax will be implemented by 2024, and finance Minister Chrystia Freeland now emphasized that the federal government remains committed to the controversial measure. Freeland faces criticism over the implementation this tax, and though she has not confirmed the original Jan. 1 start date, she notes that Canada's preference is to be part of an international tax framework, with a commitment not to wait beyond 2023 for implementation. Freeland introduced a ways and means motion on Tuesday, to advance a suite of measures from the fall economic statement that includes the digital services tax. The motion allows the government to determine the tax's entry-into-force date. The 3% tax will affect foreign digital services companies profiting from Canadian audiences, specifically the ones with "Canadian digital services revenue" of more than $20 million in a fiscal year. However, the tax has faced backlash in the United States, where critics argue it unfairly targets the U.S. tech sector. Netflix, Google, Amazon, anyone? Members of Congress and the U.S. ambassador to Canada, David Cohen, urge Ottawa to pause the tax, giving the Organization for Economic Co-operation and Development (OECD) more time to establish a global taxation framework. Goldy Hyder, president and CEO of the Business Council of Canada, expresses concerns over the tax's impact on Canada-U.S. relations. In a letter to the prime minister, Hyder suggests that Canada should align with the overwhelming OECD consensus and temporarily suspend the tax to avoid a detrimental trade war. How will the controversy surrounding Canada's digital services tax affect our diplomatic relations with some of our key trading partners? It remains to be seen, but it seems like the government faces a challenge to maintain balance between implementing its own beneficial fiscal measures and harmonious diplomatic relationships. Read more here: https://lnkd.in/gSCpP9z3 How will this tax affect the Canadian taxpayer? Take a guess. Add your comments below. #taxmechanic
To view or add a comment, sign in
-