Canadian government to be continuing its digital service tax plan on tech giants

The Canadian Government has recently announced that it would be continuing with its plans to implement a digital service tax on tech giants.

Indeed, the Canadian Government’s Digital Services Tax Act aims to apply a tax on certain revenue earned by large digital businesses in Canada. This initiative was also pursued by the UK and Australia.

Yet, this plan is heavily criticized by the US Trade Representative’s Office (USTR) as it is saying that the country should focus on implementing the OECD’s multilateral plans. The US is against the legislation due to the fact it could harm the country’s largest technology companies such as Apple and Google.

The US is concerned that these measures will single out American firms for taxation all the while excluding national firms. Hence, it would make them discriminatory and a burden to US commerce. The country is then urging Canada to abandon its plans but focus instead on its commitment to the implementation of the OECD deal.

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