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Toronto Sun
8 hours ago
- Business
- Toronto Sun
Calls mount for pause on Canada's digital services tax targeting tech giants
Published Jun 18, 2025 • 2 minute read A man is seen as a silhouette as he checks a mobile device whilst standing against an illuminated wall bearing YouTube Inc.'s logo in this arranged photograph in London, U.K., on Tuesday, Jan. 5, 2016. Photo by Chris Ratcliffe / Bloomberg OTTAWA — Ottawa is under pressure to pause digital services tax legislation that directs large tech companies to make a big retroactive payment by June 30. This advertisement has not loaded yet, but your article continues below. THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY Subscribe now to read the latest news in your city and across Canada. Unlimited online access to articles from across Canada with one account. Get exclusive access to the Toronto Sun ePaper, an electronic replica of the print edition that you can share, download and comment on. Enjoy insights and behind-the-scenes analysis from our award-winning journalists. Support local journalists and the next generation of journalists. Daily puzzles including the New York Times Crossword. SUBSCRIBE TO UNLOCK MORE ARTICLES Subscribe now to read the latest news in your city and across Canada. Unlimited online access to articles from across Canada with one account. Get exclusive access to the Toronto Sun ePaper, an electronic replica of the print edition that you can share, download and comment on. Enjoy insights and behind-the-scenes analysis from our award-winning journalists. Support local journalists and the next generation of journalists. Daily puzzles including the New York Times Crossword. REGISTER / SIGN IN TO UNLOCK MORE ARTICLES Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account. Share your thoughts and join the conversation in the comments. Enjoy additional articles per month. Get email updates from your favourite authors. THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK. Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account Share your thoughts and join the conversation in the comments Enjoy additional articles per month Get email updates from your favourite authors Don't have an account? Create Account Canadian and U.S. business groups, organizations representing U.S. tech giants and members of U.S. Congress have all signed letters calling for the tax to be eliminated or paused. The Canadian Chamber of Commerce and other organizations say retaliatory measures in a U.S. spending and tax bill could hit Canadians' pension funds and investments. A portion of U.S. President Donald Trump's 'big, beautiful' bill could increase withholding and income tax 'on any holding of an American asset by a Canadian or the U.S. operations of a Canadian-parented company,' the groups warned in an open letter Friday. 'The negative impact of this measure cannot be understated for the Canadian economy,' the letter added. 'Every pension fund, retirement fund, investment account, and deeply interconnected investment funds with American holdings, held by the likes of teachers, municipal workers, elected officials, and regular everyday Canadian families, are at risk.' This advertisement has not loaded yet, but your article continues below. Canada's digital services tax 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 tax, which will hit companies like Amazon, Google, Meta, Uber and Airbnb, imposes a 3% levy on revenue from Canadian users. It's expected to bring in an estimated $7.2 billion over five years and the first payment is retroactive to 2022. A June 11 letter signed by 21 members of Congress says that first payment will cost U.S. companies $2 billion US. It says U.S. companies will pay 90% of the revenue Canada will collect from the tax. A separate letter from U.S. industry associations and the U.S. Chamber of Commerce sent earlier in the month called the retroactive requirement an 'egregious overreach.' The office of Finance Minister Francois-Philippe Champagne declined to answer when asked whether the government is considering putting the tax on hold. Read More NHL Canada Soccer Canada Toronto Maple Leafs
Winnipeg Free Press
11 hours ago
- Business
- Winnipeg Free Press
Calls mount for pause on Canada's digital services tax targeting tech giants
OTTAWA – Ottawa is under pressure to pause digital services tax legislation that directs large tech companies to make a big retroactive payment by June 30. Canadian and U.S. business groups, organizations representing U.S. tech giants and American members of Congress have all signed letters calling for the tax to be eliminated or paused. The Canadian Chamber of Commerce and other organizations say retaliatory measures in a U.S. spending and tax bill could hit Canadians' pension funds and investments. A portion of U.S. President Donald Trump's 'big, beautiful' bill could increase withholding and income tax 'on any holding of an American asset by a Canadian or the U.S. operations of a Canadian-parented company,' the groups warned in an open letter Friday. 'The negative impact of this measure cannot be understated for the Canadian economy,' the letter added. 'Every pension fund, retirement fund, investment account, and deeply interconnected investment funds with American holdings, held by the likes of teachers, municipal workers, elected officials, and regular everyday Canadian families, are at risk.' Canada's digital services tax 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 tax, which will hit companies like Amazon, Google, Meta, Uber and Airbnb, imposes a three-per-cent levy on revenue from Canadian users. It's expected to bring in an estimated $7.2 billion over five years and the first payment is retroactive to 2022. A June 11 letter signed by 21 members of Congress says that first payment will cost U.S. companies $2 billion US. It says U.S. companies will pay 90 per cent of the revenue Canada will collect from the tax. A separate letter from U.S. industry associations and the U.S. Chamber of Commerce sent earlier in the month called the retroactive requirement an 'egregious overreach.' The office of Finance Minister François-Philippe Champagne declined to answer when asked whether the government is considering putting the tax on hold. This report by The Canadian Press was first published June 18, 2025.
