Canadian Ministers Address International Tax Reform
On August 30, 2024, the Honourable Chrystia Freeland, Deputy Prime Minister and Minister of Finance, and the Honourable Mary Ng, Minister of Export Promotion, International Trade and Economic Development, issued a statement regarding international tax reform. The statement followed the US Trade Representative's request for consultations on Canada's digital services tax under the Canada-United States-Mexico Agreement (CUSMA).
The statement emphasized Canada's support for international efforts to address corporate tax issues and ensure fair taxation for corporations operating globally. The Canadian government highlighted its preference for a multilateral agreement and its support for the OECD's two-pillar plan agreed upon in 2021. Despite efforts to reach an international agreement, Canada indicated its intention to implement its own digital services tax if a global agreement is not achieved.
The statement also noted that several countries, including France, the United Kingdom, and Italy, have already implemented digital services taxes. Canada has been in discussions with the United States regarding these taxation issues and views the use of CUSMA as an appropriate forum for further dialogue. The Canadian government expressed hope for a resolution towards international tax fairness.
