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The U.S. has taken a first step toward a potential challenge of Canada's digital services tax on large foreign technology companies under the North American trade deal. The tax is a 3% levy on the digital services revenue a company makes from Canadian users above C$20m ($14.8m) in a calendar year. It would apply only to companies with annual worldwide revenue of more than about C$1.1bn. U.S. Trade Representative Katherine Tai has requested dispute settlement consultations with Canada under the United States-Mexico-Canada Agreement (USMCA). If the countries can't resolve the matter through talks within 75 days, the U.S. may request a dispute settlement panel under the USMCA.

 

Accounting Today

Sales tax changes in 2024: What you should know

The sales tax landscape is shifting dramatically, especially for software and digital products. 2024 has already seen a wave of changes: Vermont started taxing SaaS, Texas overhauled their sourcing rules, and the EU introduced some game changing developments.

Not sure what these changes mean for your business? Anrok’s team of tax experts break down everything you should know about this year’s updates in our comprehensive report—plus what to expect for the rest of the year.

[Download the 2024 report]

 

Swedish electric performance car brand Polestar has announced the appointment of Jean-Francois Mady as its new finance chief, effective October 21st. He succeeds Per Ansgar, who has served as the interim CFO since January 2024. The change is part of Polestar's broader strategy to enhance its market position as it navigates the future of electric mobility. The company's focus on sustainability and design innovation continues to define its approach in a rapidly evolving industry.

 

Investing

American steel executives say they’re optimistic that demand for the industrial material will rebound next year from the sluggish demand and low prices that have affected the industry in 2024. Industry leaders who gathered at the recent SMU Steel Summit in Atlanta said they have high hopes in 2025. They see a turnaround fueled by an improving U.S. economy, as large infrastructure projects get built and interest-rate cuts encourage consumer spending. “We’re expecting growth in demand domestically here from construction, with all of the investment driven by government policy over recent years,” said Kevin Dempsey, president of the American Iron and Steel Industry. Geoff Gilmore, chief executive of Columbus, Ohio-based processor Worthington Steel, said the Infrastructure and Investment Jobs Act of 2021 included $550bn for projects using American steel — equal to about 50m tons of the material. “That definitely would be a boost for the sector,” he added.

 

Bloomberg

One in three U.S. workers over age 50 wants to phase into retirement, according to Willis Towers Watson’s new 2024 Global Benefits Attitudes Survey. Furthermore, 15% of such employees are already making the shift, with reduced work hours and responsibilities. Overall, about half (52%) of employees think they’re on the right track for retirement. “Phased retirement can be a win-win for both employees and employers. Working fewer hours even with reduced pay can help employees transition into retirement, both financially and emotionally," said Jonathan Sterbanz, senior director of retirement for Willis Towers Watson. “Workforce planning remains a critical component to achieving business objectives, and the opportunity cost of inefficient staffing or worker disengagement can have a direct impact on a company’s bottom line.”

 

CFO Magazine

Venky Yerrapotu, chief executive and co-founder of artificial intelligence (AI) company 4CRisk, emphasizes the transformative potential of AI in third-party risk management (TPRM). In a world increasingly reliant on interconnected systems, organizations face heightened risks, as seen in incidents like the CrowdStrike global outage. Yerrapotu states, "AI can transform businesses... by helping master risk, resilience and reinvention." He outlines three core uses of AI in TPRM: rapid risk analysis, enhanced resilience through process interconnectivity, and streamlined operations for organizational growth. By leveraging AI, companies can quickly identify and mitigate risks, ensuring they remain competitive and secure in a complex landscape. The goal is to develop self-learning models that integrate systems and processes, minimizing redundancies and biases. Organizations that embrace AI strategically will be better positioned to navigate the challenges of TPRM in the future.

 

Forbes

Japanese companies cannot use a national security designation as a tool to thwart foreign takeovers, a senior finance ministry official has told Reuters. The comments follow media reports that retail giant Seven & i Holdings is seeking to be classified as "core" to national security under the Foreign Exchange and Foreign Trade Act to stave off a buyout bid from Canada's Alimentation Couche-Tard. Seven & i, with a market value of $38bn, is currently categorized in the finance ministry's classification list as a company that conducts "designated", not "core", businesses. The latter category is for those considered crucial for national security, including nuclear power, space and semiconductors.

 

Reuters

The U.S. is experiencing a significant shift in hiring practices, particularly in the accounting sector, as companies increasingly recruit internationally. Multiplier's data indicates that U.S. firms accounted for 80% of the accounting positions filled through its platform in recent years. With over 75% of Certified Public Accountants reaching retirement age by 2019, the U.S. faces a shortage of 340,000 accountants. The trend shows a preference for hiring younger talent, with the percentage of accountants under 30 rising from 4% to nearly 24% since 2023. Companies are also favoring permanent hires over contractors, benefiting from long-term employee commitment while reducing costs.

 

CPA Practice Advisor

China said on Tuesday that it intends to launch an anti-dumping investigation into rapeseed, or canola, imports from Canada, after Ottawa moved to impose tariffs on Chinese electric vehicles, lifting prices of domestic rapeseed oil futures to a one-month peak. Rapeseed is used to produce oil for cooking or industrial purposes, and China is the world’s second-biggest importer of the commodity. More than 90% of China’s total rapeseed imports last year were from Canada, totaling 5.05m tons, according to Chinese customs data. Canada was suspected of dumping rapeseed shipments, and such unfair trade practices have caused losses locally, according to China's Ministry of Finance, which cited an appeal from the domestic sector.

 

Financial Post

Financial Times

Reuters

U.S. luxury goods group Tapestry is intensifying its focus on expanding its store network and digital presence in China to engage younger consumers. Sandeep Seth, Tapestry's chief growth officer, said: "China has a fast-changing consumption trend, and we always move at the speed of our consumers." The company aims to open 100 stores by 2025, having already launched 70 since 2022. Tapestry is also tapping into the "She-economy" and sustainable growth, with initiatives like the Coachtopia store in Sanya. Despite challenges, Tapestry reported a 5% year-on-year growth in its 2023 fiscal year, reflecting confidence in China's resilient economy and consumer enthusiasm. The National Bureau of Statistics noted a 3.5% increase in retail sales of consumer goods in the first seven months of the year.

 

China Daily

General Motors' plant in Ecuador is to close its doors permanently at the end of this week amid pressure from local competitors, leaving 320 workers fearing for their livelihoods. The factory will however still sell vehicles in the Andean country. The Cadillac and Chevrolet maker said earlier this year that it would close its production operations in Ecuador and neighboring Colombia. General Motors' OBB plant in Quito accounts for more than half (51%) of car production in Ecuador.

 

Reuters