A recent article published by The Canadian Press reports that “Canada is likely to benefit from the U.S. government's decision to campaign for a global minimum on corporate tax rates,” according to experts, after a major speech by U.S. Treasury Secretary Janet Yellen. In her speech, Treasury Secretary Yellen expressed her support for the measure and outlined President Joe Biden's economic priorities, emphasizing the need for collaboration to resolve global problems, according to author David Paddon.
Paul Seraganian, a key contact for Osler’s Tax Group and the Managing Partner of Osler’s New York office, told The Canadian Press that governments in Canada, the U.S., Europe and elsewhere will all benefit if they can work together on reforms to the global tax system that prevent corporations from playing one country off against another by threatening to change locations.
"I think it's good for Canada to be in the pack ... and part of the team, as it were," says Paul.
The article also states that “work towards a global minimum tax has been creeping forward for several years under the guidance of the OECD club of developed countries.”
"You could have a hearty debate about whether (a global minimum corporate tax) is net good or net bad for Canada as a standalone concept. And, in fact, that debate's been going on among OECD countries for quite some time now," Paul says.
"The real threat, I think, would be to fall out of the group ... Canada's interests, I think, lie with being in sync with its major trading partners."