Finance Minister Bill Morneau said Canada recognizes the potential disruption major technology companies can have on government revenue and will study whether a new tax regime is required for the industry.
Digital taxation could impact companies such as Amazon.com Inc., Google parent Alphabet Inc., Apple Inc. and Neftlix Inc., and was discussed at the Group of 20 meeting in Buenos Aires this week as the European Union considers imposing a levy on online companies. Treasury Secretary Steven Mnuchin said last week the Trump administration “firmly opposes” the measure.
“We are looking at it carefully because we need to understand what if anything happens to our tax base based on a changing of the economy towards a different business model,” Morneau said in an interview at the G20 meeting Tuesday. We are “studying the issue with an intent to have a point of view.”