this post was submitted on 19 Apr 2024
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Canada to start taxing tech giants in 2024 despite US complaints (techxplore.com)
submitted 7 months ago by 0x815@feddit.de to c/canada@lemmy.ca
5 comments fedilink hide all child comments
 

Legislation to enact the digital services tax is currently before Canada's Parliament. Once it passes, "the tax would begin to apply for calendar year 2024, with that first year covering taxable revenues earned since Jan. 1, 2022," the Finance Department said in budget documents published Tuesday.

The tax would be a 3% levy on the digital services revenue a company makes from Canadian users above C$20 million ($14.5 million) in a calendar year. It would apply only to companies with annual worldwide revenue of more than about C$1.1 billion. Alphabet Inc. and Meta Platforms Inc. are among those set to be impacted.

The government points out in the budget that at least seven other countries, including the UK, France, Italy and Spain, already have similar taxes in place.

Canada's parliamentary budget officer has estimated the tax will raise about C$7.2 billion over five fiscal years.

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[–] Donjuanme@lemmy.world 22 points 7 months ago

As a citizen of the US, fuck yeah Canada, maybe we will do the same someday... Maybe I won't cry at the cheese section some day....

[–] some_guy@lemmy.sdf.org 14 points 7 months ago

Pay up!

[–] Showroom7561@lemmy.ca 12 points 7 months ago (2 children)

Canada’s parliamentary budget officer has estimated the tax will raise about C$7.2 billion over five fiscal years.

That doesn't seem like enough. The richest individuals can make that much in a month, so having every major corporation in the digital space only generate $7.x billion in digital services tax revenue over 5 years seems like nothing. Some of these companies are worth over multiple trillions of dollars.

[–] isVeryLoud@lemmy.ca 3 points 7 months ago* (last edited 7 months ago)

"five fiscal years" is such an odd scale to me, perhaps to inflate the number versus a single fiscal year?

[–] Kelsenellenelvial@lemmy.ca 1 points 7 months ago

It’s a start, and keep in mind their value is based on global operations, but it’s only reasonable for Canada to charge tax on the Canadian portion of the business. We account for about half a percent of the world population, so if everybody else has a similar rule and proportional spending it would work out close to $300 billion per year.