Canada won't delay digital services tax during U.S. trade negotiations, says finance minister
Canada won't put a hold on the digital services tax on big tech companies set to take effect on June 30, the finance minister said Thursday.
Pressure has mounted on Ottawa to hold off while the government is in trade discussions with the U.S., which opposes the tax.
Finance Minister François-Philippe Champagne said the legislation was passed by Parliament, and Canada is "going ahead" with the tax.
"The [digital services tax] is in force and it's going to be applied," he told reporters before a cabinet meeting on Parliament Hill.
The digital services tax will hit companies like Amazon, Google, Meta, Uber and Airbnb with a three per cent levy on revenue from Canadian users.
It will apply retroactively, leaving U.S. companies with a $2-billion US bill due at the end of the month.
A June 11 letter signed by 21 members of Congress said U.S. companies would pay 90 per cent of the revenue Canada collects from the tax.
Canadian and U.S. business groups, organizations representing U.S. tech giants and American lawmakers have all signed letters in recent weeks calling for the tax to be eliminated or paused.
It is set to take effect just weeks before a deadline Canada and the U.S. have set for coming up with a new trade deal.
The Canadian Chamber of Commerce and other organizations have warned retaliatory measures in a U.S. budget bill could hit Canadians' pension funds and investments.
Champagne said Canada isn't the only country that could be affected by those retaliatory measures.
"These are discussions at the global level," he said in French.
Champagne said there's a wider discussion going on among G7 nations about tax regimes.
David Pierce, the Canadian Chamber of Commerce's vice-president of government relations, said in an earlier interview his organization fears Canada could "aggravate an already very tricky trade discussion" if it goes ahead with the tax and the retroactive payment requirement.
The Liberals first promised the tax in the 2019 election, but it was delayed for years due to global efforts to establish a broader, multinational digital taxation plan.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
National Post
24 minutes ago
- National Post
Oilers notes: Evan Bouchard driven to seek new deal with Edmonton
While Evan Bouchard was focusing on Brad Marchand, Sam Bennett and whatever Florida Panthers player was bearing down on him in the Stanley Cup Final, trying to take the puck off him, it should be a friendlier negotiation on a new contract. Article content At least, with the term for the restricted free agent. Article content Article content The Oilers likely want him for another eight years. Article content As for the dollars, you can probably start with the number 10 after a two-year bridge deal where he was making $3.9 million a season, well under market value for his production. Article content And while he had issues defensively for stretches during this past season — when he makes a mistake it's often glaring — what an arbitrator might look at if it gets that far is a much bigger picture in terms of numbers: his age, 25, his points, 72, making the playoffs the past three years, where he led all defencemen, how much he plays, 26:12 in average ice-time this past playoff run, and being to two straight Stanley Cup Finals. 'I would definitely trade that for the Cup. The end goal is to win and we didn't get there,' said Bouchard about his personal stats. Bouchard used to be current Oilers CEO Jeff Jackson's client when Jackson was a superagent, but money talks today are now being handled by Jackson's former partner Dave Gagner, Sam's dad. Article content 'I love being here. You want to bring a Cup to Edmonton. You've put so much into the organization and you want to be rewarded, you want to reward the fans for all the times they're coming out to support us. We're so close,' said Bouchard, who admits the mission uncompleted with this group is driving him to stay on. Article content Seth Jones at $9.6 million AAV and Zach Werenski at $9.6 million AAV got that much a few years ago, and Norris trophy winner Cale Makar is underpaid at $9 million but waiting to likely be in the $12-million range when his deal ends in Colorado. The Capitals just re-upped Jakob Chyrchrun at $9 million and he's not in Bouchard's league. Article content So conservatively, Bouchard will be in the $10-million range with the cap ceiling going up to $95 million. Article content While everybody's waiting to see how long Connor McDavid signs for in his new deal, which could start July 1 — eight years or maybe four or five, if he wants to see the direction the team is going in to win — Bouchard's negotiations are more front and centre. Article content Bouchard had trouble in the early going in Game 6 against Florida, but McDavid certainly wants him here for the long haul. Article content 'He's incredibly important to the group. It's a deal that needs to get done,' said McDavid. Article content 'In the big moments he shows up. That's a skill that not everybody has,' said McDavid. 'Does he make some booboos in November? Yeah, we all have them. But, his game has been improving year after year and it seems like month after month he gets better and better. I thought he took big strides this season, taking on a penalty-killing role.'
National Post
24 minutes ago
- National Post
LEAFS SNAP SHOTS: There's a history of top-scoring Leafs leaving early
Unless Mitch Marner has a dramatic change of heart in the next 10 days, the Maple Leafs will own a dubious Original Six NHL record. Article content Marner, set to walk as a free agent July 1, would be the fifth of five franchise leading point producers in Toronto to finish their careers with another team. At least one and as many as four members atop the list of Montreal, Boston, Detroit, Chicago and the New York Rangers all stayed through their retirement. Article content Article content Not here, where Marner, with 741 points, will likely join Mats Sundin (987), Darryl Sittler (916), Dave Keon (858) and the late Borje Salming (768) as agreeing to trades or leaving as UFAs. Article content For all but Sundin, the grounds for divorce was owner Harold Ballard's ruinous reign in the 1970s and 1980s, short-changing the future Hall of Famers on contracts or in Salming's case, giving no hope of winning a Stanley Cup. Sundin refused a trade in belief the 2007-08 Leafs would make the playoffs, but eventually departed the next season for no return, signing with Vancouver. Article content Marner, currently 14 points ahead of Auston Matthews on the franchise list, has not commented since the Leafs' ninth straight early playoff elimination, in which the nimble right winger began hinting in the past tense about his hometown future. Article content There's growing evidence of his frustration at being scapegoated for playoff woes despite great regular season numbers. General manager Brad Treliving has stated the Leafs DNA must change to emulate Florida's post-season success and the quick fix is channeling Marner's long-term contract dollars into multiple players on the market or via trades. Article content TAXING TIMES Article content John Tavares's dispute with the Canada Revenue Agency might not be through as quickly as indicated earlier this week. Article content While an adjournment is in effect after the Tax Court wanted the CRA to disclose key internal records, a spokesperson for the government department e-mailed Postmedia this week to clarify the stay is not to be interpreted as a sign the matter will be dismissed. Article content 'The court only adjourned relating to a procedural matter involving document production, not the case itself. The appeal remains active.' Article content At issue is $15.25 million US, the signing bonus in Tavares's seven-year, $77 million deal with the Leafs in 2018. The CRA considers the bonus a salary, to be taxed at 50 per cent. Tavares's camp has countered the rate should be 15 per cent, per a tax treaty with the U.S. covering income earned by non-residents when the long time New York Islander agreed to provide 'services in Canada'.
CTV News
39 minutes ago
- CTV News
Ottawa graduates taking part in spring convocation ceremonies as unemployment rates rise
Graduates from Algonquin College's School of Business and Hospitality are set to enter an uncertain job market. CTV's Natalie van Rooy reports. Graduates from Algonquin College's School of Business and Hospitality are set to enter an uncertain job market. CTV's Natalie van Rooy reports. Thousands of graduates are taking part in spring convocation ceremonies this week, but they are entering a tough job market. The youth unemployment rate continues to rise but students in one sector may have more luck than others. Beaming and proud, hundreds of graduates crossed the stage to get their diploma during spring convocation. 'They get that sense of joy and satisfaction that they've completed their program,' said Cory Haskins, Algonquin College School of Business and Hospitality Dean. 'Their faculty, their family, and their friends are all here to support them in this amazing time.' Armed with diplomas and certificates, the group from the Algonquin School of Business and Hospitality are ready to tackle the job market. Tourism continues to boom in Canada, in 2023, the industry generated $124 billion in tourism revenue, up 18.5 per cent from 2019. 'Many of the students who go through our hospitality programs, specifically in the culinary baking side, already have jobs that they've been doing throughout their time with a part-time employment and are leaving and going into full-time positions right now,' Haskins said. But not every graduate is as lucky. There are challenges in the youth job market. The unemployment rate for people between the ages of 15 and 24 grew to 14.2 per cent in May. Convocation Algonquin College students pose for photos at Spring Convocation on June 19, 2025. (Natalie van Rooy/ CTV News Ottawa) 'I will be doing an internship in project procurement analysis,' said Eunice Doumbe. 'I'm hopeful to you further my career in the field.' Loved ones are here to support those hoping to start a new career. 'My words of advice is always look ahead. Be positive. Everything you've done is worth it and well deserved,' said Matthew Chandran, who was attending the convocation. 'Don't ever think of the negatives because that's all in the past so just keep looking forward.'
