Tax implications of Rogers-Shaw deal discussed at hearing before tribunal

OTTAWA –

Canada’s competitors watchdog says the tax income implications of Rogers Communications Inc.’s $26-billion proposed takeover of Shaw Communications Inc. is not going to essentially profit customers.

During cross-examination of economics skilled and witness Roger Ware, counsel for the Competition Bureau tried to make the case that if there are job losses ensuing from the deal, there would finally be a discount in tax income, noting the potential for job cuts that’s typical of mergers.

The Competition Bureau mentioned anybody out of a job would seemingly spend much less, which might be a price to the federal government within the type of a loss in tax income.

Ware’s argument is that the tax income that may accrue from any improve within the earnings of Rogers and Shaw stemming from the merger can be earnings for the federal government and all Canadians.

Ware additionally mentioned competitors evaluation assumes that freed assets, on account of a merger, will probably be employed elsewhere within the economic system.

The listening to earlier than the Competition Tribunal is anticipated to final till mid-December and goals to resolve the deadlock between the Commissioner of Competition, who needs to dam the deal, and Rogers and Shaw.

The Competition Bureau is one among three regulatory businesses that should approve the deal, along with the CRTC and Innovation, Science and Economic Development Canada.

Rogers needs to shut the Shaw deal by the top of the yr, with a doable additional extension to Jan. 31, 2023.

This report by The Canadian Press was first printed Nov. 30, 2022.

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