Canada plans digital tax in 2022 on global tech giants

  • 11/30/2020
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OTTAWA, Nov 30 (Reuters) - Canada plans to impose a tax on corporations providing digital services from 2022 that will stay in place until major nations come up with a coordinated approach on taxation, the finance department said on Monday. The Organisation for Economic Cooperation and Development is working on a common approach to ensure digital behemoths, such as Google and Facebook Inc, pay their fair share of taxes as the coronavirus hammers budgets. Canada said it was concerned about a delay in reaching agreement. The new tax would come into effect on January 1 2022 and remain in place until a common approach is agreed. The measure would raise federal revenues by C$3.4 billion ($2.6 billion) over five years, starting in the 2021-22 fiscal year. “Canadians want a tax system that is fair, where everyone pays their fair share,” Finance Minister Chrystia Freeland told legislators in the fall economic update. “Canada will act unilaterally, if necessary, to apply a tax on large multinational digital corporations, so they pay their fair share just like any other company operating in Canada.” ($1 = 1.2965 Canadian dollars) Reporting by David Ljunggren, editing by Amran Abocar and Steve Scherer Our Standards: The Thomson Reuters Trust Principles. MORE FROM REUTERS

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