Larger size tech firms operating in Canada can soon find themselves paying millions more to the Canadian government in form of taxes.
Liberals claim that the new tax will generate over $2.5 billion dollars in taxes over 4 years from the tech giants.
Liberals will collect it through additional 3% tax on any profits that are made from Canadian consumers.
You do not have to worry about this tax if your company generates less than $1 billion dollar in global revenues and $40 million in Canadian revenues a year.
So only companies like Amazon, Facebook and Google will get taxed under this arrangement.
This is very similar to the tax enacted in France where companies over $1b have to cough up 3% on sales to French consumers. This tax will only apply to advertising and digital inter-mediation services.
The party also says it will crack down on loopholes such as businesses purchasing expensive items and writing them off as business. They want to enact 10% luxury tax on expensive cars, boats and airplanes. So much for buying that private plane to see your customers in timely manner.