Canada cancelled its digital services tax. What was it and why did the U.S. hate it?

a year ago by Grappling7155 to c/canada

OTTAWA — Tech giants such as Amazon and Google will not have to shell out close to $2 billion as expected today, as Canada moved to cancel the controversial digital services tax on Sunday, just one day before the first payment was due.
grte 41 points a year ago

Boy, the moment this guy didn't have an election to win he tied those elbows right to his sides, huh?

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cyborganism 36 points a year ago

The tax was announced in 2020, but the legislation to enact it didn't pass until last year. While it has been in effect for a year, the first payment, retroactive to 2022, was to be submitted on June 30.

The government intended it to overcome what Canada saw as a tax loophole, with big tech companies operating in Canada digitally, making money off Canadian users and data, but not paying tax on it in Canada.

The tax was to apply to companies that operate online marketplaces, online advertising services and social media platforms, and those that earn revenue from some sales of user data.

It meant companies such as Amazon, Google, Meta, Uber and Airbnb, would pay a three-per-cent levy on revenue from Canadian users.

The tax was only to cover large companies, those that have worldwide annual revenues greater than 750 million euros per year and Canadian digital services revenue greater than $20 million per year. The parliamentary budget officer had estimated it would bring in $7.2 billion over five years.

That seemed fair. He cancelled it to appease Trump, clearly. This is extremely disappointing. And we're also losing $7.2 billion in revenue over 5 years. This could have helped fund Canadian cultural projects, artists, or finance our struggling media industry.

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xyro 22 points a year ago

This make us look desperate, this is disappointing

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justOnePersistentKbinPlease 16 points a year ago

Because Carney is a fucking traitor.

If he hasn't surrendered on the DST, the wealthy tax or the global minimum tax rate, he wouldn't have had to cut anything to increase the military budget.

I dread to see what he surrenders to the US in his trade "deal".

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grey_maniac 15 points a year ago

Surrenders to the US, or to the demands of Canadian billionaires and corporations? We have our own oligarch and monopolist issues, they're just slightly quieter about it. At least we have fewer religious nutbars, but they do try.

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Kichae 1 point a year ago

This. The DTS was not a tax on American or foreign digital services, but all of them. Home grown digital services companies were certainly lobbying to get this killed, too.

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jaemo 11 points a year ago

Ok. This Canadian just cancelled his digital services.

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zqwzzle 5 points a year ago

So about that military budget.

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justOnePersistentKbinPlease 2 points a year ago
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