A collection of the brief insights throughout December 2020 of the type provided on an ad hoc basis in our Latest digital tax byte update.
4 December 2020
In Canada's fall economic statement, there is a stated intention to institute some sort of digital service tax (DST) if the OECD fails to reach consensus 'in the near future' - in a box on page 113 that's part of Chapter 4.8. The proposal, which is to be outlined further in the 2021 Budget, would apply beginning 1 January 2022 and remain until a global agreement becomes effective.
In a European Commission communication on EU-US relations to the Parliament and Council, the EU is seeking to establish a transatlantic agenda with the US that focuses on a variety of key digital issues, including tax, through the establishment of a “EU-US Trade and Technology Council”. On the tax front, the Commission paper outlines the desire to develop “innovative solutions” to a “fair taxation in the digital economy” that would have the EU and US “strongly commit to the timely conclusion of discussions on a global solution within the context of OECD and G20” (page 6). The EU hopes to hold a summit with the US in the first half of 2021 to “launch this ambitious and concrete agenda”.
10 December 2020