Monday’s fiscal update saw the federal government take the next steps in its efforts to effectively tax digital giants.
“Canadians want a tax system that is fair, where everyone pays their fair share, so the government has the resources it needs to invest in people and keep our economy strong,” said Finance Minister Chrystia Freeland, in a speech in the House of Commons.
“That is why we are moving ahead with implementing GST/HST on multinational digital giants, and limiting stock option deductions in the largest companies.”
In addition to the sales tax, the federal government is also looking to apply a broader corporate tax on revenue generated in Canada be international tech giants, such as Facebook and Google.
The Organization for Economic Cooperation and Development (OECD) is working on a common approach to ensure these tech giants pay their fair share.
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