News: Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies & ForexEconomic EventsCryptocurrenciesCybersecurityPress Releases

Canada still prepared to impose digital services tax - finance ministry

12/14/2021 | 04:02pm EDT

OTTAWA, Dec 14 (Reuters) - Canada is still prepared to impose a tax on corporations providing digital services, the finance ministry said on Tuesday in an announcement set to irritate the United States.

Canada first unveiled the proposed measure in the April budget, saying it would stay in place until major nations come up with a coordinated approach on taxing digital giants such as Alphabet Inc's Google and Facebook Inc.

The Organisation for Economic Cooperation and Development has agreed a common approach to ensure such firms pay their share of taxes, but a treaty to enforce this has yet to be implemented.

In a fiscal update, the finance ministry said the new tax would be imposed as of January 1, 2024, but only if the international treaty had not come into force by that time. In that event, the tax would be payable on revenues earned as of Jan 1, 2022.

"It is the government’s sincere hope that the timely implementation of the new international system will make this unnecessary," the update said.

(Reporting by David Ljunggren, editing by Julie Gordon)

© Reuters 2021
Stocks mentioned in the article
ChangeLast1st jan.
ALPHABET INC. -0.16% 2116.1 Delayed Quote.-26.96%
ASE 1.11% 883.04 Delayed Quote.-3.35%
BANK OF MONTREAL -0.21% 132.77 Delayed Quote.-2.51%
GREAT-WEST LIFECO INC. 0.29% 34.01 Delayed Quote.-10.41%
INTACT FINANCIAL CORPORATION -0.03% 180.59 Delayed Quote.9.83%
MANULIFE FINANCIAL CORPORATION 1.11% 22.7 Delayed Quote.-5.85%
META PLATFORMS, INC. 1.41% 183.83 Delayed Quote.-45.35%
NATIONAL BANK OF CANADA 0.32% 94.58 Delayed Quote.-1.93%
NETFLIX, INC. 4.15% 187.83 Delayed Quote.-68.82%
ROYAL BANK OF CANADA -0.05% 128.55 Delayed Quote.-4.25%
SUN LIFE FINANCIAL INC. -0.24% 62.43 Delayed Quote.-11.33%
THE TORONTO-DOMINION BANK 1.45% 93.76 Delayed Quote.-3.32%
Latest news "Economy & Forex"
06:43aChina's Lenovo says supply issues to hit shipments, revenue growth slows
06:40aUK launches BBC review focussed on impartiality, staff diversity
06:38aRussia says Western reporters to be expelled if YouTube blocks foreign ministry briefings
06:35aSingapore's central bank imposes extra capital requirement on OCBC
06:34aWorld Economic Forum reverts to January for 2023 Davos meeting
06:34aTexas official identified bodies of classmate, friends' kids
06:34aFactbox-What is a windfall tax and when has Britain used it?
06:31aGold drops as policy minutes confirm Fed's tightening path
06:23aBlinken to say China strategy is about rules-based order, not 'new Cold War'
06:21aOil climbs on tight supply, prospect of EU ban on Russian supply
Latest news "Economy & Forex"