Deputy Prime Minister and Minister of Finance of Canada Chrystia Freeland speaks to the media before releasing her first fiscal update, the Fall 2020 Economic Declaration, in Ottawa, Ontario, Canada, on November 30, 2020. REUTERS / Blair Gable / Photo File
Canada’s first budget in two years, which will be presented to parliament on Monday, proposes a tax on sales of online platforms and e-commerce stores, a tax on digital services for web giants and a tax on the luxury of ‘articles like yachts, government sources familiar with the document. dit.
It will not include a wealth tax, a rate that Democrats will oppose. Liberal Prime Minister Justin Trudeau’s budget will need the support of at least one opposition group to pass it.
“The government is not moving forward right now with a wealth tax,” a government source told Reuters. “We will take significant steps to close the gaps and combat tax evasion and we will ask those who are doing it right now to pay a little more.”
The budget will include a tax on sales of online platforms and e-commerce stores from July and a tax on digital services for large web businesses from January 1, 2022, both measures originally promised on last year.
Online platforms include foreign vendors without a physical presence in Canada that sell products such as mobile apps and online video games. Ecommerce storage is the storage of physical goods before they are sold online.
A luxury tax on new vehicles and private jets valued at more than $ 100,000 C ($ 79,970) and boats worth more than $ 250,000 C will go into effect next year if the budget is approved. All-terrain vehicles and snowmobiles would be exempt.
With the increase in the country’s real estate market, the government proposes to tax vacant residential properties owned by non-resident and non-Canadian homeowners as of January 1, 2022, sources said.
There will also be an effort to crack down on jurisdictional purchases by large, profitable companies trying to artificially reduce their tax obligations in Canada, sources said.
Starting in 2023, Canada will try to limit the amount of excessive interest expenses that can be deducted from the profit, although small businesses will be exempt.
In 2022 or 2023, the budget will propose to limit the ability of multinational corporations to artificially build agreements between countries that end up reducing their tax rates in Canada.
The sources did not provide any details. Finance Minister Chrystia Freeland will present the budget on Monday around 4pm (2000 GMT).
Offering his first budget since taking office as finance minister last year, Freeland has pledged up to C $ 100 billion in incentives over three years to “start” an economic recovery in what is likely to be an election year. . Read more
Separately, the Toronto Star reported Sunday that Canada will allocate C $ 12 billion to the budget to expand its main pandemic support measures as much of the country fights a virulent third wave of COVID-19 infections . Read more
(1 $ = 1,2504 Canadian dollars)
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