OTTAWA, Nov 30 (Reuters) - Canada plans to impose a tax on
corporations providing digital services from 2022 that will stay
in place until major nations come up with a coordinated approach
on taxation, the finance department said on Monday.
The Organisation for Economic Cooperation and Development is
working on a common approach to ensure digital behemoths, such
as Google and Facebook Inc, pay their fair
share of taxes as the coronavirus hammers budgets. Canada said
it was concerned about a delay in reaching agreement.
The new tax would come into effect on January 1 2022 and
remain in place until a common approach is agreed. The measure
would raise federal revenues by C$3.4 billion ($2.6 billion)
over five years, starting in the 2021-22 fiscal year.
"Canadians want a tax system that is fair, where everyone
pays their fair share," Finance Minister Chrystia Freeland told
legislators in the fall economic update.
"Canada will act unilaterally, if necessary, to apply a tax
on large multinational digital corporations, so they pay their
fair share just like any other company operating in Canada."
($1 = 1.2965 Canadian dollars)
(Reporting by David Ljunggren, editing by Amran Abocar and
Steve Scherer)