Businesses See Some Flexibility in Canada’s Plan for Digital Tax

Business groups are seeing some flexibility in Canada’s stance on imposing digital services taxes on large corporations, which they say could allow the country to avoid a conflict with global tax reform efforts.

Recent draft legislation includes an imposition date of after Jan. 1 2024, which is a break from past statements and a way to avoid breaching agreements set by the Organization for Economic Development and Cooperation on global tax reform talks, said Megan Funkhouser, senior director of policy in tax and trade at the Washington, D.C.,-based Information Technology Industry Council.

“It does provide space or ambiguity, including ...