Canada's competition watchdog says the tax revenue implications of Rogers Communications Inc.'s $26-billion proposed takeover of Shaw Communications Inc. will not necessarily benefit consumers.
During cross-examination of economics expert and witness Roger Ware, counsel for the Competition Bureau tried to make the case that if there are job losses resulting from the deal, there would ultimately be a reduction in tax revenue, noting the possibility of job cuts that is typical of mergers.
Ware's argument is that the tax revenue that would accrue from any increase in the profits of Rogers and Shaw stemming from the merger would be income for the government and all Canadians. The hearing before the Competition Tribunal is expected to last until mid-December and aims to resolve the impasse between the Commissioner of Competition, who wants to block the deal, and Rogers and Shaw.
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