Latest news with #Francois-PhilippeChampagne
Edmonton Journal
12 hours ago
- Business
- Edmonton Journal
Canada won't pause digital services tax despite pressure from U.S., finance minister says
Article content OTTAWA — Canada won't put a hold on the digital services tax on big tech companies set to take effect on June 30, the finance minister said Thursday. Pressure has mounted on Ottawa to pause the tax ahead of trade discussions with the U.S. Article content Finance Minister Francois-Philippe Champagne said Thursday the legislation was passed by Parliament and Canada is 'going ahead' with the tax. Article content 'The (digital services tax) is in force and it's going to be applied,' he told reporters before a cabinet meeting on Parliament Hill. The digital services tax will hit companies like Amazon, Google, Meta, Uber and Airbnb with a three per cent tax on revenue from Canadian users. It will apply retroactively, leaving U.S. companies with a $2 billion US bill due at the end of the month. A June 11 letter signed by 21 members of Congress said U.S. companies will pay 90 per cent of the revenue Canada will collect from the tax. Canadian and U.S. business groups, organizations representing U.S. tech giants and American members of Congress have all signed letters in recent weeks calling for the tax to be eliminated or paused. It's set to take effect just weeks before a deadline Canada and the U.S. have set for coming up with a new trade deal, following months of trade conflict between the two countries. Article content Rick Tachuk, president of the American Chamber of Commerce in Canada, said the plan to go ahead with the tax 'undercuts those talks and risks derailing the agreement.' 'A retroactive tax like the DST, weeks before a new deal is supposed to be done, isn't a bargaining chip. It would likely be viewed as a provocation,' he said in an emailed statement. The Canadian Chamber of Commerce and other organizations have warned retaliatory measures in a U.S. spending and tax bill could hit Canadians' pension funds and investments. Champagne said Canada isn't the only country that could be affected by those retaliatory measures. 'These are discussions at the global level,' he said in French. Champagne said there's a wider discussion going on among G7 nations about tax regimes. David Pierce, the Canadian Chamber of Commerce's vice-president of government relations, said in an earlier interview his organization fears Canada could 'aggravate an already very tricky trade discussion with the Americans' if it goes ahead with the tax and the retroactive payment requirement. Article content Latest National Stories
Vancouver Sun
12 hours ago
- Business
- Vancouver Sun
Canada won't pause digital services tax despite pressure from U.S., finance minister says
OTTAWA — Canada won't put a hold on the digital services tax on big tech companies set to take effect on June 30, the finance minister said Thursday. Pressure has mounted on Ottawa to pause the tax ahead of trade discussions with the U.S. Finance Minister Francois-Philippe Champagne said Thursday the legislation was passed by Parliament and Canada is 'going ahead' with the tax. 'The (digital services tax) is in force and it's going to be applied,' he told reporters before a cabinet meeting on Parliament Hill. Start your day with a roundup of B.C.-focused news and opinion. By signing up you consent to receive the above newsletter from Postmedia Network Inc. A welcome email is on its way. If you don't see it, please check your junk folder. The next issue of Sunrise will soon be in your inbox. Please try again Interested in more newsletters? Browse here. The digital services tax will hit companies like Amazon, Google, Meta, Uber and Airbnb with a three per cent tax on revenue from Canadian users. It will apply retroactively, leaving U.S. companies with a $2 billion US bill due at the end of the month. A June 11 letter signed by 21 members of Congress said U.S. companies will pay 90 per cent of the revenue Canada will collect from the tax. Canadian and U.S. business groups, organizations representing U.S. tech giants and American members of Congress have all signed letters in recent weeks calling for the tax to be eliminated or paused. It's set to take effect just weeks before a deadline Canada and the U.S. have set for coming up with a new trade deal, following months of trade conflict between the two countries. Rick Tachuk, president of the American Chamber of Commerce in Canada, said the plan to go ahead with the tax 'undercuts those talks and risks derailing the agreement.' 'A retroactive tax like the DST, weeks before a new deal is supposed to be done, isn't a bargaining chip. It would likely be viewed as a provocation,' he said in an emailed statement. The Canadian Chamber of Commerce and other organizations have warned retaliatory measures in a U.S. spending and tax bill could hit Canadians' pension funds and investments. Champagne said Canada isn't the only country that could be affected by those retaliatory measures. 'These are discussions at the global level,' he said in French. Champagne said there's a wider discussion going on among G7 nations about tax regimes. David Pierce, the Canadian Chamber of Commerce's vice-president of government relations, said in an earlier interview his organization fears Canada could 'aggravate an already very tricky trade discussion with the Americans' if it goes ahead with the tax and the retroactive payment requirement. Matthew Holmes, the chamber's executive vice-president and chief of public policy, said in a statement that a Liberal government announcement on counter-tariffs to protect the steel and aluminum industries Thursday was 'geared toward the 30-day deadline, so we see no reason why DST's timeline shouldn't be as well.' He said a 'short-term pause would still be a prudent move to keep negotiations on track and respectful.' The Liberals first promised the tax in the 2019 election. It was delayed for years due to global efforts to establish a broader, multinational digital taxation plan. Following significant delays in that process at the Organization for Economic Co-operation and Development, Canada went ahead with its own tax. Other countries, including France and the United Kingdom, also have digital service taxes in place. Our website is the place for the latest breaking news, exclusive scoops, longreads and provocative commentary. Please bookmark and sign up for our newsletters here .
Ottawa Citizen
12 hours ago
- Business
- Ottawa Citizen
Canada won't pause digital services tax despite pressure from U.S., finance minister says
OTTAWA — Canada won't put a hold on the digital services tax on big tech companies set to take effect on June 30, the finance minister said Thursday. Article content Article content Finance Minister Francois-Philippe Champagne said Thursday the legislation was passed by Parliament and Canada is 'going ahead' with the tax. Article content Article content 'The (digital services tax) is in force and it's going to be applied,' he told reporters before a cabinet meeting on Parliament Hill. Article content Article content The digital services tax will hit companies like Amazon, Google, Meta, Uber and Airbnb with a three per cent tax on revenue from Canadian users. Article content It will apply retroactively, leaving U.S. companies with a $2 billion US bill due at the end of the month. A June 11 letter signed by 21 members of Congress said U.S. companies will pay 90 per cent of the revenue Canada will collect from the tax. Article content Canadian and U.S. business groups, organizations representing U.S. tech giants and American members of Congress have all signed letters in recent weeks calling for the tax to be eliminated or paused. Article content It's set to take effect just weeks before a deadline Canada and the U.S. have set for coming up with a new trade deal, following months of trade conflict between the two countries. Article content Article content Rick Tachuk, president of the American Chamber of Commerce in Canada, said the plan to go ahead with the tax 'undercuts those talks and risks derailing the agreement.' Article content Article content 'A retroactive tax like the DST, weeks before a new deal is supposed to be done, isn't a bargaining chip. It would likely be viewed as a provocation,' he said in an emailed statement. Article content The Canadian Chamber of Commerce and other organizations have warned retaliatory measures in a U.S. spending and tax bill could hit Canadians' pension funds and investments. Article content David Pierce, the Canadian Chamber of Commerce's vice-president of government relations, said in an earlier interview his organization fears Canada could 'aggravate an already very tricky trade discussion with the Americans' if it goes ahead with the tax and the retroactive payment requirement.
Toronto Sun
a day ago
- Business
- Toronto Sun
Champagne says Canada won't pause digital services tax
Published Jun 19, 2025 • < 1 minute read Finance Minister Francois-Philippe Champagne. Photo by TONY CALDWELL / FILES / Postmedia Network OTTAWA — Finance Minister Francois-Philippe Champagne says Canada is going ahead with its digital services tax on big tech companies that is set to take effect on June 30. Pressure has mounted on Ottawa to put the tax on hold ahead of trade discussions with the U.S. More coming. This advertisement has not loaded yet, but your article continues below. THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY Subscribe now to read the latest news in your city and across Canada. Unlimited online access to articles from across Canada with one account. Get exclusive access to the Toronto Sun ePaper, an electronic replica of the print edition that you can share, download and comment on. Enjoy insights and behind-the-scenes analysis from our award-winning journalists. Support local journalists and the next generation of journalists. Daily puzzles including the New York Times Crossword. SUBSCRIBE TO UNLOCK MORE ARTICLES Subscribe now to read the latest news in your city and across Canada. Unlimited online access to articles from across Canada with one account. Get exclusive access to the Toronto Sun ePaper, an electronic replica of the print edition that you can share, download and comment on. Enjoy insights and behind-the-scenes analysis from our award-winning journalists. Support local journalists and the next generation of journalists. Daily puzzles including the New York Times Crossword. REGISTER / SIGN IN TO UNLOCK MORE ARTICLES Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account. Share your thoughts and join the conversation in the comments. Enjoy additional articles per month. Get email updates from your favourite authors. THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK. Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account Share your thoughts and join the conversation in the comments Enjoy additional articles per month Get email updates from your favourite authors Don't have an account? Create Account NHL Editorial Cartoons Soccer NFL Columnists
Toronto Sun
02-06-2025
- Business
- Toronto Sun
Liberals pressed to reveal how much revenue U.S. tariff response has raised
Published Jun 02, 2025 • 4 minute read Finance Minister Francois-Philippe Champagne. Photo by Allen McInnis / Bloomberg OTTAWA — The Conservatives pushed the federal government on Monday to disclose how much revenue its counter-tariffs have generated so far — and accused the Liberals of putting their 'elbows down' as U.S. President Donald Trump threatens to ramp up his trade war. This advertisement has not loaded yet, but your article continues below. THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY Subscribe now to read the latest news in your city and across Canada. Unlimited online access to articles from across Canada with one account. Get exclusive access to the Toronto Sun ePaper, an electronic replica of the print edition that you can share, download and comment on. Enjoy insights and behind-the-scenes analysis from our award-winning journalists. Support local journalists and the next generation of journalists. Daily puzzles including the New York Times Crossword. SUBSCRIBE TO UNLOCK MORE ARTICLES Subscribe now to read the latest news in your city and across Canada. Unlimited online access to articles from across Canada with one account. Get exclusive access to the Toronto Sun ePaper, an electronic replica of the print edition that you can share, download and comment on. Enjoy insights and behind-the-scenes analysis from our award-winning journalists. Support local journalists and the next generation of journalists. Daily puzzles including the New York Times Crossword. REGISTER / SIGN IN TO UNLOCK MORE ARTICLES Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account. Share your thoughts and join the conversation in the comments. Enjoy additional articles per month. Get email updates from your favourite authors. THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK. Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account Share your thoughts and join the conversation in the comments Enjoy additional articles per month Get email updates from your favourite authors Don't have an account? Create Account Conservative members of Parliament asked at least 10 questions of the government in the House of Commons on Monday about the revenue raised so far from the counter-tariffs. Kyle Seeback, Conservative MP for Dufferin_Caledon, accused Prime Minister Mark Carney of putting his 'elbows down' through exemptions that limit the impact of Canada's counter-tariff response as Trump threatens to double existing tariffs on steel and aluminum to 50 per cent. Carney was in Saskatoon meeting with Canada's premiers on Monday. Responding to Seeback on the government's behalf, Finance Minister Francois-Philippe Champagne insisted that Canada will 'fight against unjustified and illegal tariffs on Canadian steel and aluminum.' He did not answer questions about the amount of revenue raised by counter-tariffs. This advertisement has not loaded yet, but your article continues below. However, the federal government's latest fiscal monitor, published May 30, showed Canada collected an extra $617 million in import duties in March, compared to a year earlier. Revenues from customs import duties topped $1 billion in March, more than double the $427 million recorded a year earlier. 'This one-off bump seems pretty directly linked to the retaliatory tariff action taken by the Government of Canada,' said Randall Bartlett, deputy chief economist at Desjardins. Figures have not been published on how much revenue was generated by import duties in April or May. But Bartlett warned that, at the current pace, the revenues will fall short of the Liberals' projections. The United States' stop-and-go tariff dispute kicked off against Canada in March after Trump declared an emergency at the northern border related to the flow of fentanyl. He partially paused levies a few days later for imports that comply with the Canada-U.S.-Mexico Agreement on trade. Your noon-hour look at what's happening in Toronto and beyond. By signing up you consent to receive the above newsletter from Postmedia Network Inc. Please try again This advertisement has not loaded yet, but your article continues below. In response, the federal government slapped retaliatory tariffs on billions of dollars in U.S. goods entering Canada — costs that are paid by Canadian businesses importing the items. The federal government announced some exemptions to Canada's counter-tariffs on April 15 related to certain inputs for manufacturing sectors, as well as for goods critical to public health and safety or national security. The Liberal party election platform, released four days later, projected that counter-tariffs on the United States would raise an estimated $20 billion over 12 months. Speaking on March 12 after Canada imposed retaliatory tariffs in response to U.S. tariffs on steel and aluminum, Carney said the government would 'make sure that all the proceeds from our tariffs go back to support workers in the affected industries.' This advertisement has not loaded yet, but your article continues below. Bartlett said the fiscal monitor shows the tariff response in March offered some 'windfall' revenue for Ottawa that improved the federal government's fiscal position heading into the thick of the trade dispute. But those single-month levels, if repeated through the current fiscal year, would leave the government well short of the revenue estimates in its platform. 'You need to really double or triple that pace of tariff revenue collection to hit the $20 billion in additional revenues,' Bartlett said. The trade dispute also threatens to hold back Canada's economic growth, Bartlett said, which would in turn throttle revenues paid into Ottawa's coffers through corporate and personal income taxes. Counter-tariffs, as a source of government revenue, are unlikely to offset the overall hit to the Canadian economy, he said. This advertisement has not loaded yet, but your article continues below. 'What might be a very near-term boost to overall revenues is really something that's going to fade gradually … as it gets offset by weaker overall incomes in the broader Canadian economy,' Bartlett said. The Canadian Press reached out to Champagne's office Monday to ask if the Liberals are still banking on $20 billion in counter-tariff revenues in the current fiscal year. His press secretary pointed to an interview the minister gave to CBC's Power & Politics program last Thursday. Champagne said then that the figure in the Liberal platform was 'a projection at a moment in time' and noted the tariff situation has been changing rapidly. 'Obviously we'll have to see where we end up,' he said. 'The scenario we want is to have no tariffs, so there would be no counter-tariffs.' This advertisement has not loaded yet, but your article continues below. The Liberals are forgoing publishing a spring budget but have promised a fiscal update in the fall. Champagne told the CBC last week that the Liberals want to present a fiscal projection when they have 'a level of certainty.' That argument doesn't satisfy Bartlett, who said the federal government feels 'rudderless' at the moment. He pointed out that the Liberals were able to publish at minimum an economic and fiscal 'snapshot' in July 2020, a few months after deploying 'enormous' stimulus in response to the onset of the COVID-19 pandemic. No government ever has perfect clarity about its fiscal projections, Bartlett said, but tabling some kind of update sends important signals to Canadians and financial markets about the government's policy agenda. This advertisement has not loaded yet, but your article continues below. He said that a lack of fiscal transparency has real life consequences for households — failing to provide clarity on the level of debt the government plans to issue can drive interest rates higher, for example. Bartlett argued a fiscal update is particularly important as the government promises increased infrastructure and defence spending and a broad-based income tax cut taking effect July 1 _ measures that will simultaneously ramp up spending and structurally reduce tax revenues. 'It's very difficult to have certainty as to what direction fiscal policy is going in, except that it is toward larger deficits and higher debt,' he said. Toronto Maple Leafs Olympics Toronto Maple Leafs Toronto Raptors Crime
