The Liberal government in Canada is planning to implement a digital service tax for big tech companies but has not set a date for it to come into effect. The tax would impact big firms that provide digital services like e-commerce and social media. It’s been delayed to give time for an international treaty to settle how the tax will be structured. The tax would impose a three per cent rate on companies with annual revenues of more than 750 million euros and “Canadian digital services revenue” of more than $20 million. The government hopes to impose the tax in lockstep with its allies but will move on its own if necessary. The plan also includes other initiatives like a tax credit for investment in carbon capture and storage and giving the Competition Bureau power to subpoena information from companies. This plan has faced some criticism from the U.S.-based National Foreign Trade Council, who says it doesn’t allow companies to plan how to pay the tax. On the other hand, a Canadian expert suggests one benefit of the tax would be to show that Canada is willing to stand up to big tech companies.
>>Join our Facebook Group be part of community. <<