Prime Minister Mark Carney cut short reporters’ questions after acknowledging Canada gained nothing in exchange for promising to repeal its $3.7 billion Google tax. “There is more to do,” said Carney as he walked away from questioning over his abrupt suspension of the Digital Services Tax Act Monday, per Blacklock's Reporter.“It doesn’t make sense to collect tax from people and then remit them back,” said Carney. “So it provides some certainty.”“Did you get anything in exchange?” asked a reporter. “It is part of a bigger negotiation. It is something we expected.”“There is more to do and we will keep you updated,” said Carney. He then walked away from reporters..UPDATED: ‘It’s achievable’ — Trump, Carney could reach trade deal within days.Parliament on June 19, 2024 passed the Digital Services Tax Act. Google, Facebook, Amazon and other large multinationals were required to register with the Canada Revenue Agency January 31 with first payments due June 30.Cabinet at 10:38 p.m. ET on Sunday issued a statement confirming it would never collect the tax hours before it was to take effect.“Finance Minister François-Philippe Champagne will soon bring forward legislation to rescind the Act,” the notice said.The federal 3% tax was to be charged on foreign companies with a minimum $20 million a year in Canadian revenue and more than $1 billion in annual worldwide revenue. The Budget Office in a 2023 report Digital Services Tax predicted Parliament would collect $3.7 billion in the first two years..G7 leaders draft statement on Israel-Iran conflict, Trump yet to sign.The measure appeared doubtful since February 13, when President Donald Trump called it an anti-American trade barrier that would draw retaliation.“Only America should be allowed to tax American firms,” said a White House Fact Sheet.“Trading partners hand American companies a bill for something called a digital services tax. Canada and France use these taxes to collect over $500 million per year from American companies.”Cabinet first detailed the tax in a 2021 Ways And Means Motion tabled by then-Finance Minister Chrystia Freeland. The tax was “good for Canada’s bottom line,” she said at the time.“It will prevent the current international race to the bottom on corporate taxation and will ensure the world’s biggest companies pay taxes where they do business,” said Freeland.“This is an important deal. Canada is very committed to doing it and we’re working hard on it right now.”NDP leader Don Davies taunted the prime minister over his reversal.“Rescinding the digital services tax is pure caving into Trump and his billionaire friends,” he said.“Canada is a sovereign country with the right to make our own taxes.”“Abandoning fair taxation of tech giants is unacceptable appeasement.”
Prime Minister Mark Carney cut short reporters’ questions after acknowledging Canada gained nothing in exchange for promising to repeal its $3.7 billion Google tax. “There is more to do,” said Carney as he walked away from questioning over his abrupt suspension of the Digital Services Tax Act Monday, per Blacklock's Reporter.“It doesn’t make sense to collect tax from people and then remit them back,” said Carney. “So it provides some certainty.”“Did you get anything in exchange?” asked a reporter. “It is part of a bigger negotiation. It is something we expected.”“There is more to do and we will keep you updated,” said Carney. He then walked away from reporters..UPDATED: ‘It’s achievable’ — Trump, Carney could reach trade deal within days.Parliament on June 19, 2024 passed the Digital Services Tax Act. Google, Facebook, Amazon and other large multinationals were required to register with the Canada Revenue Agency January 31 with first payments due June 30.Cabinet at 10:38 p.m. ET on Sunday issued a statement confirming it would never collect the tax hours before it was to take effect.“Finance Minister François-Philippe Champagne will soon bring forward legislation to rescind the Act,” the notice said.The federal 3% tax was to be charged on foreign companies with a minimum $20 million a year in Canadian revenue and more than $1 billion in annual worldwide revenue. The Budget Office in a 2023 report Digital Services Tax predicted Parliament would collect $3.7 billion in the first two years..G7 leaders draft statement on Israel-Iran conflict, Trump yet to sign.The measure appeared doubtful since February 13, when President Donald Trump called it an anti-American trade barrier that would draw retaliation.“Only America should be allowed to tax American firms,” said a White House Fact Sheet.“Trading partners hand American companies a bill for something called a digital services tax. Canada and France use these taxes to collect over $500 million per year from American companies.”Cabinet first detailed the tax in a 2021 Ways And Means Motion tabled by then-Finance Minister Chrystia Freeland. The tax was “good for Canada’s bottom line,” she said at the time.“It will prevent the current international race to the bottom on corporate taxation and will ensure the world’s biggest companies pay taxes where they do business,” said Freeland.“This is an important deal. Canada is very committed to doing it and we’re working hard on it right now.”NDP leader Don Davies taunted the prime minister over his reversal.“Rescinding the digital services tax is pure caving into Trump and his billionaire friends,” he said.“Canada is a sovereign country with the right to make our own taxes.”“Abandoning fair taxation of tech giants is unacceptable appeasement.”
