May 24, 2022

The Queens County Citizen

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Multinational corporations tax: $ 4.5 billion a year to Canada

Multinational corporations tax: $ 4.5 billion a year to Canada

This is the first time the minister has shared an assessment on the matter since the deal was struck, however, she said in an interview on the show. House, D CBC, Some details are yet to be worked out, so the figures I am giving you are not accurate.

Under the agreement, led by the Organization for Economic Co-operation and Development (OECD), multinational companies with a turnover of more than $ 1 billion will be required to pay at least 15% of the minimum global tax from 2023.

By 2024, the agreement will also allow each country to levy a 25% tax on its territory, meaning that very large companies, with an annual turnover of about 30 billion and profits of more than 10%, will exist even if they do not have a physical presence – such as Amazon, Facebook and Google.

Tax on digital services

If it is not possible to enforce the Global Agreement, Christiana Freeland recalls that it already has Establish an insurance policy for Canadians.

In her April budget, the finance minister confirmed the introduction of a 3% tax on revenue from digital services, scheduled for January 1, 2022.

However, this tax will not come to light if the global agreement is terminated. If not, the minister said it would be applied repeatedly.

The Parliamentary Budget Officer predicts that Ms. Freeland’s proposed tax this spring will bring in $ 4 billion over five years, making it clear that the global agreement will be even more beneficial.

According to our own calculations it brings in about $ 700 million a year. So from this agreementOECD, Based on numbers alone, is a much better deal for Canada.

A quote from:Christiana Freeland, Minister of Federal Finance

Ms. Freeland was not the only one to appreciate the international agreement. The G20 finance ministers, meeting in Washington this week, approved it, paving the way for it to be formally approved by the leaders of the world’s largest economies at a summit in Rome later this month.

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The use of these revenues

What to do with 4.5 billion a year? When asked about this, Christia Freeland declined to say how the proceeds from the new tax will be spent in the coming years.

The federal government is specifically in debt to help individuals and businesses meet their needs during the epidemic.

The approach our government is pursuing to Canada’s financial position is that we are committed to keeping the GDP ratio from a steadily declining debt. We continue to show this commitment in the campaign, She says.

From text by Chris Hall, CBC News