Digital services and taxation | The tax will come into force in 2024, maintains Freeland

(Ottawa) Canada will go ahead with its digital services tax in January 2024 despite strong protests from the United States.


Federal Finance Minister Chrystia Freeland confirmed the decision had not changed during a conference call on Tuesday.

“It is in our national interest,” she pleaded several times from the airport in New Delhi, India, where she was attending the meeting of the G20 countries.

“Our partners understand our approach,” assured the great silversmith.

Ottawa’s decision to go ahead with a digital services tax displeases some countries, including Washington.

And US Trade Representative Katherine Tai briefed Canadian International Trade Minister Mary Ng.

She “urged Canada to refrain from imposing a digital services tax,” reads a transcript of a one-on-one a few days ago.

The 3% tax targets foreign companies that derive revenue from the engagement, content or data of Canadian users.

Canada stands apart in the Organization for Economic Co-operation and Development (OECD).

It’s that Ottawa has chosen to stay the course, even if the countries that had adopted the tax have agreed to suspend its application for at least one more year.

Minister Freeland on Tuesday declined to reveal the nature of the foreign objections.

“It’s up to the other countries to explain their position,” said the one who is also deputy prime minister, saying she hopes there will be an agreement.

“I really hope that it will be possible to find a solution that will, on the one hand, preserve Canada’s national interest, and on the other, allow the international agreement to move forward. ‘before,’ she expressed.


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