Under the U.S. Treasury Department’s plan, governments would be able to collect dues from companies with the highest revenue and profits based on their sales in a country rather than whether they have a physical presence there. Finance Minister Chrystia Freeland’s office did not directly answer questions from The Logic about the U.S. proposal. “Canada is already working with international partners at the OECD, to ensure that global digital giants pay tax wherever they do business,” said spokesperson Katherine Cupliskas, citing upcoming meetings of the G7, G20, International Monetary Fund and World Bank. (Financial Times, The Logic)

Talking point: The Treasury submission was sent to 135 governments participating in an OECD- and G20-led negotiation on the international tax system. The plan reportedly targets about 100 of the world’s biggest corporations, including tech giants headquartered within its own borders. That’s a shift from the previous administration’s call for a carve-out for U.S. digital firms. Low-tax jurisdictions that attract corporate registrations are split on this, and on Treasury Secretary Janet Yellen’s related call for a global minimum rate. Luxembourg welcomed the former, while Ireland expressed concern over the latter.