Post Tagged with: "freeland"

Fortune Global Forum 2018 #27 by John Lehmann/Fortune  FORTUNE Global Forum (CC BY-NC-ND 2.0) https://flic.kr/p/2c3SF2A

Chrystia Freeland’s Hidden Tax: How Canada Should Implement the Copyright Term Extension Buried in Budget 2022

Deputy Prime Minister and Finance Minister Chrystia Freeland unveiled Budget 2022 yesterday. While much of the focus was on housing and the environment, buried in Annex 3 at page 274 was a promise to extend the term of copyright from the international standard of life of the author plus 50 years to life plus 70 years. The extension fulfills a commitment in the Canada-US-Mexico Trade Agreement with the specific implementation details presumably to come in several weeks in the Budget Implementation Act. This is both a terrible policy making approach (Prime Minister Justin Trudeau was elected in 2015 in part on a pledge not to use the budget to sneak through legislation this way) and terrible policy that experts have termed a “tax on consumers”. Indeed, term extension was long opposed by successive Canadian governments both Liberal and Conservative for good reason: it creates significant costs with limited to no benefits.

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April 8, 2022 7 comments News
tax collector parking by Jodi Green https://flic.kr/p/a76ttm (CC BY-NC-ND 2.0)

The Law Bytes Podcast, Episode 115: Reuven Avi-Yonah on the Past, Present and Future of Digital Services Taxes

There has been mounting concern over the past few years over whether some of the world’s largest companies – primarily big tech – pay their fair share of taxes. This issue has arisen in countries around the world leading to new digital services taxes that primarily target the U.S. tech giants and which in turn often leads to the U.S. threatening to retaliate in response. Canada now finds itself embroiled in these battles as Finance Minister Chrystia Freeland has proposed a retroactive digital services tax to take effect in 2024 if by that time a newly reached OECD agreement has not taken effect. Professor Reuven Avi-Yonah is a law professor at the University of Michigan and director of the school’s international tax LLM program.  He joins the Law Bytes podcast to discuss digital services taxes, the OECD deal, and what might happen if the international agreement falls apart.

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January 31, 2022 1 comment Podcasts
Prime Minister of Canada, Justin Trudeau, with Secretary-General, Angel Gurria, during a bilateral meeting in Paris, France by Herve Cortinat / OECD (CC BY-NC 2.0)  https://flic.kr/p/26a54hN

Why the Digital Services Tax Act Violates Canada’s OECD Commitment to a Tax Moratorium

The Canadian government’s decision to move ahead with the Digital Services Tax Act, legislation that will take effect in 2024 should the international agreement at the OECD fail to materialize by that date, is problematic for reasons that extend beyond sparking a trade battle with the United States and potentially leading to billions in tariffs on Canadian goods and services. The plan also appears to violate Canada’s commitment at the OECD, in which all members agreed to a moratorium on introducing new digital services taxes.

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December 17, 2021 3 comments News
Fortune Global Forum 2018 by  John Lehmann/Fortune (CC BY-NC-ND 2.0) https://flic.kr/p/Nn98GR

Should Have Seen This Coming: U.S. Raises Prospect of Retaliation Over Canada’s Digital Services Tax Plans

For the past two years, Canadian digital tax policy has been on a collision course with Canadian trade policy. The Liberal government committed in the 2019 election campaign to a digital services tax primarily designed to target large U.S. technology companies that generate significant revenues in Canada from online advertising and user data. The policy has been adopted in several other countries, repeatedly sparking a response from the U.S. that threatens to retaliate with tariffs on sensitive sectors of the economy. For example, after France announced plans for a similar tax, the U.S. threatened to levy billions in tariffs on French products.

As the trade threats escalate, the effort to strike an international agreement on the issue has gained increasing traction (my Law Bytes podcast last February with Professor Itai Grinberg provides a great backgrounder into the issue). After a preliminary deal was struck in October on an international approach, the U.S. dropped the tariff threat against several countries. Yet as efforts to finalize and implement the deal continue, Canadian Finance Minister Chrystia Freeland announced this week that new legislation will be introduced to create a Canadian digital services tax (this is distinct from digital sales taxes, which are currently in effect).

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December 16, 2021 3 comments News
Cooperation in the Pacific Rim by Jakob Polacsek, World Economic Forum (CC BY-NC-SA 2.0) https://www.flickr.com/photos/worldeconomicforum/48179628441

Canada Threatens to Delay Copyright Term Extension in Response to U.S. Electronic Vehicle Tax Credit Plan

Trade tensions between Canada and the U.S. have been rising in recent weeks with the U.S. Build Back Better Act proposing to create a tax credit for electronic vehicles that Canadian officials argue violates the Canada-U.S.-Mexico Agreement. The U.S. plan is said to be the equivalent of a 34 percent tariff on Canadian assembled electric vehicles. While trade disputes are not particularly noteworthy, the Canadian government response certainly is. Last week, Finance Minister Chrystia Freeland and International Trade Minister Mary Ng wrote to eight U.S. Senators with the following warning:

Beyond possible retaliatory actions, if the U.S. proceeds with the tax credit provisions as drafted, we would see this as a significant change in the balance of concessions agreed to in the USMCA. As such, we would consider the possible suspension of USMCA concessions of importance to the U.S. in return. Those concessions could include suspending USMCA dairy tariff-rate quotas and delaying the implementation of USMCA copyright changes.

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December 14, 2021 8 comments News