To the best of my knowledge, there is no prohibition on subnational jurisdictions implementing the pillar two global minimum tax. When I say “no prohibition”, I mean one that's included within pillar two of the multilaterally agreed framework for the global minimum tax.
However, if a subnational jurisdiction were to implement its own global minimum tax, I think that could pose problems in terms of coordination with the federal global minimum tax that would be implemented by the proposed global minimum tax act in part 2 of the bill. I guess the knock-on effects of any such coordination issues could include certain adverse impacts with respect to the global status of the federal global minimum tax.
When I say “the status”, I mean.... There's a peer review process that is currently under way at the OECD, or the Organisation for Economic Co-operation and Development, whereby all of the inclusive framework countries—there are 145 that have joined this two-pillar plan for international tax reform—will be evaluating Canada's legislation in terms of its compliance with the pillar two framework. When I say there could be adverse impacts on the status of Canada's legislation, I mean this as part of the peer review process. Those other jurisdictions may raise certain concerns about the interaction between the provincial and federal global minimum tax in Canada.