[Advisors] Refs to BROADBAND and DIGITAL ECONOMY in the 2022 Federal Budget

[Garth Graham]

FYI, references to BROADBAND and DIGITAL ECONOMY in the 2022 Federal Budget
 
There are no references to “community networks” or “digital equity,” nor did I expect any.  There is no sense of an overarching vision of the development of Canada in the context of a digital economy and society.  In fact the digital economy references largely address perceived problems of regulation.
 
References to BROADBAND
Under “Key Ongoing Actions”
·      $1 billion for the Universal Broadband Fund (UBF), bringing the total available through the UBF to $2.75 billion, to improve high-speed Internet access and support economic development in rural and remote areas of Canada; p.59.
 
Under “Supporting Vibrant Rural Communities”
·       $2.75 billion for the Universal Broadband Fund to improve high-speed Internet access in rural and remote areas; p.84.
 
Under “Increasing the Impact of the Canada Infrastructure Bank”
·      The CIB will continue to invest in its public transit, broadband, and trade and transportation investment areas. p.105
 
 
References to DIGITAL ECON0MY
 
Under “Economic Context”
·      The impacts of the pandemic are still being felt by workers and businesses, whether from the ongoing rebalancing of consumer demand and related supply chain issues, or new realities such as increased remote work and the accelerating digitalization of our economy. P. 3
 
Under “Key Ongoing Actions”
·       $4 billion for the Canada Digital Adoption Program, which launched in March 2022 to help businesses move online, boost their e-commerce presence, and digitalize their businesses; p.59.
 
Under “Tax Fairness and Effective Government”
·       Ensuring that the GST/HST applies in a fair and effective manner to the growing digital economy. P.203.
 
Under “International Tax Reform: Pillar One (Reallocation of Taxing Rights)” p.209
 
Canada strongly supports international efforts to end the corporate tax race to the bottom, ensure that all corporations pay their fair share, and level the playing field for Canadians and Canadian businesses.
 
Canada is one of 137 members of the OECD/G20 Inclusive Framework on
Base Erosion and Profit Shifting that joined a two-pillar plan for international tax reform agreed to in October 2021.
 
Pillar One of the plan will ensure that the largest and most profitable global corporations, including large digital corporations, pay their fair share of tax in the jurisdictions where their users and customers are located.
 
This is a long-overdue updating of international tax rules to reflect the way business works in today’s digitalized and globalized economy. The federal government is actively working with its international partners to develop the multilateral convention and model rules required to establish the new Pillar One tax framework and bring the new rules into effect.
 
The government is encouraged by the progress being made and will continue to press forward and be prepared to introduce implementing legislation after the terms are multilaterally agreed. To ensure that Canadians’ interests are protected in any circumstance, the government is prepared to advance legislation for a Digital Services Tax to ensure that corporations in all sectors, including digital corporations, pay their fair share of tax on that money they earn by doing business in Canada. It is Canada’s sincere hope that the timely implementation of the new international system will make this unnecessary.