Thanks, Alla.
In the interest of time, I'll focus on two measures that would improve Canada's position in a rapidly changing international tax environment.
First, the chamber believes the government should stand still on the digital services tax act, drop its retroactive application and fully support the implementation of the OECD two-pillar plan that has been agreed to by over 130 countries. Despite signing a multilateral agreement to standstill DST-like measures, concerns remain about the government's intent to move forward with legislation on a DST with retroactive enforcement to January 2022. Such action would invite economic retaliation, impose potential double taxation scenarios, complicate tax planning and undermine efforts to secure support for the OECD agreement. Given the possibility that a DST would flow through to Canadian SMEs, most of which have increased their use of digital services offered by multinationals since the pandemic, this tax would also impose a significant economic burden on said companies.
Second, we call on the government to implement a three-year extension of the accelerated investment incentive at the current rate, with an expanded scope to include mining and metal manufacturing activities, while delaying the phase-out period to fiscal year 2027. Maintaining this deduction for the first year of acquiring eligible depreciable assets would encourage businesses to invest in capital assets while ensuring competitiveness for Canadian businesses vis-à-vis the United States given related U.S. federal tax changes.
Ultimately, we believe a competitive tax system should provide businesses with the crystal clarity and capital needed to invest in the technologies and tools to thrive.
Thank you. We look forward to your questions.