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this post was submitted on 27 Jun 2025
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Good.
It should be a lot higher, honestly. Encourage building Canadian services and using European services instead of relying on predatory American monopolies.
3% of revenue is a substantial number.
However, even better:
Source
hah, imagine companies asking customers for taxes back from 2022
You know this is not how it works, yes?
Yes and no. Companies will always try to pass expenses like tax onto their customers. My guess is they will increase rates on customers significantly to recover some of those unexpected retroactive costs in the near term with the side effect of increasing revenue above the 3% tax in the long term.
I mean it doesn't stop companies trying to comply with the law the worst way possible
It is a corporation tax, not the sales tax.
They are using the turnover to estimate tax liability because taxing profits achieved in a single country by digital multinationals is bordering on impossible (and too easy to avoid).
Yup. Companies avoid paying taxes in one country by getting their divisions in other, lower tax countries to charge the one in the high tax country so much for intellectual property and branding etc that they make a loss in the high tax country, which in some countries entitles them to a tax rebate. It's insane.
Which is why most of the multinationals should be taxed on turnover in a country taxing them.