OECD Publishes Reporting Framework for the Gig and Sharing Economy:
Today (Friday, July 3rd), the OECD published model rules that governments may adopt which requires platform operators such as Uber and AirBnB to collect data on their sellers and report that information to tax administrations for compliance purposes. The rules are intended to provide a standardized approach for governments to collect data on transactions that platform sellers undertake, and the income they earn as a result.
The model rules would apply to platform operators, defined by the OECD as “any software, including a website or a part thereof, and applications, including mobile applications” that sellers can use to connect with other users to provide relevant services in exchange for consideration.
Read more from Bloomberg Tax here and access the OECD's Model Rules for the Sharing and Gig Economy by clicking here.
OECD Claims the United States is Still Committed to Global "Digital Tax" Talks:
The head of OECD said on Wednesday, July 1st, that he believes that the United States government remains committed to international discussions regarding a potential "digital tax" on large digital multinational companies, following a number of statements from American officials which indicate otherwise.
Recent comments from US Secretary of the Treasury Steven Mnuchin, and US Trade Representative Robert Lighthizer, had cast doubts on the immediate-viability of ongoing negotiations, however, OECD Secretary-General Ángel Gurría told a meeting of delegates to the negotiations that; "to be clear, contrary to some earlier media reports, the U.S. has not pulled out of the negotiations. Indeed, the presence of the U.S. delegation here today, notwithstanding the U.S. request for a delay on pillar one, confirms their ongoing engagement in this important work."
Read more from the Financial Post here and from the Tax Foundation here.
British Columbia Boosts July Climate Action Tax Credit by $450 Due to COVID-19:
The Government of British Columbia has announced that most residents of the province will receive a one-time $450 "boost" to their Climate Action Tax Credit for the month of July. The Government of British Columbia has stated that this increase will be implemented automatically, and that B.C. residents will receive the money along with their GST/HST tax returns.
The Government of British Columbia says that this one-time boost is in response to the economic effects of the COVID-19 pandemic. B.C. Finance Minister Carole James told media that "many British Columbians are still worried about how they can cover costs such as transportation so they can return to work, pay for groceries and find day camps for their children. The enhanced climate action tax credit puts extra money in the pockets of British Columbians for their household expenses and to spend at local businesses. This is a needed boost as we work together to restart the economy."
Read more from the Vancouver Sun here and Richmond News here.
Canadian Pacific Railway Argues Against Paying Income Tax, Cites 140 Year-Old Contract:
The Federal Court is to examine 140 years of tax records of the Canadian Pacific Railway over the company’s claim it’s exempt from paying income tax, according to a report from the Toronto Sun.
Justice Alan Diner says expert testimony will have to suffice given there are no witnesses left from the time of the original contract, noting that “this particularly holds true in this case where there are no fact witnesses to events that occurred nearly a century and a half ago."
Read more from the Toronto Sun here.