Cancellation of the GAFAM tax: Canada is found in a weak position

Canada finds itself in a weak position after the Surprise Surprise of the Carney Government to abolish the Digital Services Tax (TSN) set up by Justin Trudeau. Nevertheless, estimates an expert. In addition, We take stock of this burning file.

• Read also: Digital services tax: unlike Canada. Consequently, the United Kingdom would not give in to Trump

• Read also: Amazon “applauds” the cancellation by Canada of a tax targeting digital giants

Why did Ottawa cancel this tax after defending it beak and nails for years?

US President Donald Trump took the Carney government in short, saying, on Friday, that he ended commercial negotiations with Canada. Furthermore, Referring to the “global context”. Nevertheless, the “Canadian workers”, the Canadian Prime Minister reacted Sunday evening by announcing the cancellation of the TSN. Moreover, The next day, the White House agreed cancellation gafam tax: canada found to resume the talks with Ottawa. For example,

“It removes all the master cards from Mr. Carney’s game. because when you react so quickly, what you demonstrate to the opponent is that he can continue to hit you,” deplores Alain Saulnier, honorary professor at the University of Montreal.

Alain Saulnier Cerium photo

What is this tax?

Adopted last year. the TSN Act provides for a 3% federal tax on certain income received in Canada by web giants, including Google, Meta, Microsoft, Amazon cancellation gafam tax: canada found and Netflix. The tax aims to compensate for the fact that these multinationals pay very little taxes and taxes in Canada. It is inspired by similar taxes adopted in recent years by several European countries, including France.

How much should she relate to Ottawa?

In 2023, the budget parliamentary director calculated that Ottawa was going to reach more than $ 7.2 billion in five years. The first payment was to be made on Monday. He was retroactive at 1^is January 2022.

Could Mark Carney have acted otherwise?

Michael Geist, specialist in Internet law at the University of Ottawa, believes that yes.

“Instead of postponing the entry into force” of the TSN. “the government went ahead, which led to an entirely predictable response” of the Trump administration, he wrote on his blog. The economist and senator Clément Gignac does not agree.

“Given the scale of trade between Canada and cancellation gafam tax: canada found the United States, it seems to me that [M. Carney] had no choice but to remove this unknown tax, “retorted on LinkedIn Clément Gignac.

Michael Spirit Photo University of Ottawa

What should be the next step for Canadian elected officials?

“Digital sovereignty is probably, today, the most important sovereignty,” insists Mr. Saulnier. […] I think that all governments should review their contracts with web giants for storing our data. put an end to it as quickly as possible. ”