Article contentTwo developments took place this past week that could impact many multinational corporations in the near future, and could spark a global tax war. The first is the suspension of global talks to resolve differences over the taxation of digital services. Try refreshing your browser, or Jack M. Mintz: The tax wars to come Back to videoThe second is a proposal made by the European Union Commission to limit subsidized foreign companies from competing in the EU. In terms of the ongoing discussion over digital taxes, it is critical to separate sales tax from corporate income tax issues. The sales tax issue is simple: it makes no sense that Canadians pay GST/HST and provincial sales tax on Canadian-supplied digital services offered by companies like Bell or Shaw, but pay no sales tax on Netflix and other foreign-supplied digital services.

Source: National Post June 23, 2020 18:56 UTC