The federal government has quietly backed down from its plans to implement a new digital services tax as of January 2024 that the Parliamentary Budget Officer estimated would generate billions in revenue. It did not make the headlines or receive much promotion, but after months of insisting that a digital services tax would take effect in Canada in January 2024, the government has now removed that implementation deadline in the Fall Economic Statement. The battle over the proposed tax had sparked increasing anger between Canada and the U.S., with dozens of U.S. Senators and Representatives signing letters urging the government to delay its plans. The Canadian plan remains to establish a retroactive three percent tax that will hit a wide range of businesses, but given fears moving ahead now would jeopardize a global agreement that is designed to address the digital services tax issue, Canada has seemingly faced the obvious reality and backed down.
Archive for November 23rd, 2023
Recent Posts
The Age Verification Bill That Won’t Die: How Bill S-209 Complicates the Government’s Bill C-34 Online Safety Plan 
The Law Bytes Podcast, Episode 280: A Fall Update on Where Things Stand on Canadian Digital Policy Reforms 
The Wrong Ban: The Heritage Committee Backed a Targeted Ad Ban for Kids and Stopped Short of a Social Media Ban, Yet the Government Chose the Reverse 
Regulator First, Rules Later: Bill C-34 Debate Shows the Government Wants a Digital Safety Commission Before It Figures Out What It Will Do 
Making the Case Against Its Own Bill: What the Government’s Bill C-34 Charter Statement Reveals About the Constitutional Vulnerability of the Social Media Ban
