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Globe says federal taxes are coming for Amazon, others

2023-11-29 08:43 ET - In the News

See In the News (C-AMZN) Amazon.com CDRs (CAD Hedged)

The Globe and Mail reports in its Wednesday edition that Finance Minister Chrystia Freeland tabled a package of tax measures Tuesday that includes provisions for a Digital Services Tax, a plan that is strongly opposed by business groups and the White House. The Globe's Bill Curry writes that the Liberal government first proposed a Digital Services Tax, or DST, three years ago but has been delaying its implementation in the hope that an international deal would be reached that would determine how on-line-based multinationals should be taxed in the digital economy. Ms. Freeland tabled a ways-and-means motion Tuesday, which is a precursor to a government bill that will implement parts of last week's fall economic statement and remaining elements from the March budget. The DST would be a 3-per-cent tax on revenue earned by large businesses from specific digital services. It is primarily aimed at large digital service providers such as Amazon, Google, Netflix and Spotify. The motion does not specify when Canada will impose the DST, but Ms. Freeland's comments to reporters Tuesday strongly suggested the government intends to have the tax take effect on Jan. 1, 2024. Ms. Freeland still hopes for a global arrangement.

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