By Denis Carmel
OTTAWA – The digital giants are shaking in their boots due to the prospect they will be subjected to a Digital Sales Tax that could be implemented as early as 2023–2024. If this sounds familiar … it is because we have been talking about it for so long (please also see here and here.)
Today, the federal government’s fall economic statement said this measure “will ensure that the largest and most profitable global corporations, including large digital corporations, pay their fair share of tax in the jurisdictions where their users and customers are located.”
“Significant progress has been made in establishing the technical rules of the new system, and the OECD has been conducting ongoing public consultations,” the statement went on. “The Inclusive Framework’s intention is to complete multilateral negotiations so that the treaty to implement Pillar One can be signed in the first half of 2023, with a view to it entering into force in 2024.”
Cynics could argue that the United States, being a member of the OECD, may be dragging their feet on this.
Imposing a new tax just before an election may irritate some voters because we talk of fairness when fairness sneaks into my bank account, it could be used by opposition parties.
Revenues from these taxes are projected to be $0.2 billion in 2022-23 and grow to $1. billion by 2027-28.
