Mark Carney said that the decision to give up tax on digital services, which the Canadian government undertook on Monday morning, is “part of wider negotiations” and added that “is something we expected (…) that it will be part of the final arrangements” – Canadian media cited on Monday evening.
The prime minister added that he talked by phone with Trump on Sunday and decided that the negotiations would continue with the assumption that the agreed end date would be met, July 21.
The Canadian Press agency cited Carney, who said that “there is no point in collecting tax and then [jego] Returning “. Nevertheless, the agency said – some of the companies whose tax was to concern, decided to pay tax, although it was not yet transferred to the Canadian tax office, Canada Revenue Agency.
Thaw in Canadian-American negotiations
In a statement of the government published on Sunday night, it was written that “The Canada government conducts complex negotiations from the USA about the new partnership in economic and security matters (…) As part of support for these negotiations, the Minister of Finance François-Shippe Champagne stated that Canada would suspend digital services in anticipation of mutually favorable broad commercial agreement with the USA “. The Minister of Finance” will soon present legislation repealing the act on digital tax tax “-added in a message.
The Canadian parliament returns to work on September 15 this year.
The tax was announced as early as 2020, due to the fact that many international companies operating on digital platforms do not pay tax in Canada from the income obtained from the sale of their services to Canadians. Canada wanted such issues to be regulated in an international agreement, but until this agreement was reached, the Act on Digital Services tax, which entered into force in June 2024 was to ensure tax collection.
The Minister of Finance announced in mid -June that Canada would not suspend the introduction of tax on digital services. Trump's conversations were broken less than an hour after Bloomberg said last Friday that the Canadian Ministry of Finance would not give up tax collection plans.
Billions would go to the Canada budget
Canadian tax on digital services was to be 3 percent. revenues obtained from Canadian users of digital platforms and is similar to used by, among others Great Britain and France. The tax concerned the companies that earn revenues in Canada in the amount of $ 20 million in Canadian dollars. Until Monday, these companies were to complete the tax declaration, the tax was to be induced backwards, from 2022 and concern companies such as Airbnb, Amazon, Google, Meta and Uber.
At the end of June American companies had to pay the equivalent of USD 2 billion – they reported Canadian media. According to estimates, the tax was to bring the budget to 7.2 billion Canadian dollars in five years.
