If politics is like poker, Canada laughed, which showed nothing for the implementation of digital service tax, for his bold and according to an expert.
Professor and Canada Research President Michael GIST, a law professor in the Internet and e-commerce law at Ottawa University, told Citynuse on Monday that Prime Minister Mark Karney’s government ran a strategic error to implement the tax, which has since stopped all business talks with Canada, US President Donald Trump has since stopped the issue.
Those talks are now backHowever, according to Geist, Canada did not achieve any base. He said that Canada should have taxed the back burner against the US tech veterans to be used as a dialogue tool.
“The time of this time is not very good,” Gest said.
“You know, what they had provided a little different …, say, 30 days … who would have given a chance for it to be one of the cards you can play in the conversation.”
He said that the federal parliamentary budget officer estimated that the tax would bring revenue of about $ 7.2 billion in five years.
“We are giving billions in return … We should get something as part of tariff discussions. The Canadian government feels that whatever has been received, it has returned to the status quo a week ago.”
“They are all able to do (DO), to bring the United States back to the bargaining table. Well, they were on the bargaining table, before the government decided, on many warnings, to go, to go ahead and say, ‘We are going to start assembled immediately,’ and don’t avoid it for at least a month, to open the door for any kind.”
If the tax actually came into force, the Geist said that Canadian consumers would have paid more at the end as technical giants like Amazon, Meta, AirBNB, Uber and Google saw the loss again.
“In fact, Google, who was certainly one of the companies that would be targeted by it, began charging a specific fee for Canadian advertisers, and in Canada, advertisements that were in anticipation of new taxes last year. Therefore, it is clear that many fees were eventually going to bear by canadian business, and of course, by the end of the day, by the Canadian consumers.”
The Geist also said that he believes that Canada made a mistake from the organization for the plan of economic cooperation and development to establish a multilateral tax approach designed to change the digital service taxes levied by individual countries.
He said, “countries had said that they would not do, while they were doing these discussions, introducing new measures, and the Canadian government was almost standing alone saying, ‘No, they did not want to see one of these places,” he said.
“I think at the end of the day, the government looked at the potential revenue and was ready to sacrifice some principles of multinational agreements to try to achieve them, and they knew that they were going to protest from the United States.
“I think … they thought they can either talk in their own way or they can massage the issue. But if we have just learned anything from Donald Trump, especially, this approach doesn’t just work.”
Canada needs ‘reset’ on technical policy
While GIST said that he believes that there is a need to regulate the technical industry, he feels that Canada needs to reconsider his view.
“I think we need a real reset, and I think I feel very realism when it comes to some of our technical policy. And it is not to say that technical companies should not be regulated. They should be fully done, but taking an approach, where you stand on the top of the mountain and say, ‘This is the same that you don’t listen to you,’ and … we do not have a bluffing.
“Canada, Canadian market, is simply not significant enough, and some of these regulatory proposals cost so high that they are going to invite a response. You simply do not expect companies to face potential billions in additional costs and have no reaction.
“The Canadian government, for a very long, looks at these technical companies like an ATM, where they just want to withdraw their policies,” he concluded. “We have to do a better job of coming with a realistic and effective technical policy.”
Former ambassadors weigh on the environment of digital service tax, business talks
Amidst the news that the business talks resumed, Citynues spoke with Frank McCena – the Canadian Ambassador to the United States and the TD Bank Group’s current vice -president – about the decision to scrape tax.
“This is actually quite specific in interacting with President Trump. He is very unexpected. Some may think that it is a conversation strategy. I think it is a character defect, but it is unpredictable and you have to be ready to move with (music) music,” he said.
“I think the Canadian government came to the conclusion that a trillion-dollar trade deal, which would be beneficial for Canadian workers and industry, was so important. [two]-Belian-dollars items, which was probably about to get down from the toilet during the conversation anyway. ,
McKake, who had earlier also worked as a liberal premiere of New Breanswick, said that the current atmosphere in Washington is different since he was an ambassador during the second term of former US President George W. Bush. He remembered the decision of not being involved in the war in Iraq, especially in Iraq and a bitter controversy over softwood wood.
“President Bush, or even for that case, President Clinton, was extremely respectable. And President Bush will tell me about Iraq. He said, ‘Look, I think your country understands that your country has different thoughts and different political imperatives, and I respect it.
“It’s not what we are getting now. If anything happens, I would say that the United States country is quite respectable as a whole, but at the President’s level, his language is very inflammatory.”
McKenna said that when the digital service tax was an attempt to achieve some impartiality from technical giants in the world and there is still tax in many other countries, “it had faults” and admitted that it is a bottleneck to the south of the border.
“This is a policy in which the United States technology is not much in love with the giants, but even within Canada, the business community and even consumer advocates,” he said.
Meanwhile, McKaina urged people to wait for the final results of the period of conversation.
He said, “We have to keep it cool to use the line and move forward. It is a very difficult task to interact with the President because there are many issues, personality issues, which are involved in it,” he said.
“I think Canada is doing a good job today, but we have to remember that the award is worth fighting. There is almost a trillion dollar in trade between our two countries.”
With files from Canadian press