US trade representatives oppose Canada’s digital services tax act proposal

The Office of the United States Trade Representative (USTR) has filed comments with the Canadian Government raising serious concerns about Canada’s plan to enact a Digital Services Tax (DST).

In these comments, the United States urges Canada to abandon any plans for a unilateral measure and instead redouble its commitment to the rapid implementation of Pillar One of the October 8 OECD/G20 agreement and the negotiation of a multilateral convention.

USTR also discussed serious concerns about measures that single out American firms for taxation while effectively excluding national firms engaged in similar lines of business.

Should Canada adopt a DST, USTR would examine all options, including under our trade agreements and domestic statutes.

CT Bureau