Federal Finance Minister Bill Morneau said this week that the Liberal minority government plans to implement a unilateral digital services tax (DST). This would be a mistake with broad ramifications for Canada. The digitalization of the world economy is proceeding at a remarkable clip, and it presents undeniable public-policy challenges, including in taxation. The flow of data across borders has risen 150-fold since 2005, and digital commerce has in turn become a powerful driver of growth.
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