ITI: Biden Administration Must Act as Canada Implements Digital Services Tax
WASHINGTON – Today, global tech trade association ITI expressed grave concern following Canada’s reported implementation of its digital services tax. The measure contravenes long-standing international tax and trade norms and threatens to complicate ongoing international tax negotiations in the OECD/G20 Inclusive Framework.
“Canada’s digital services tax sends a damaging blow to its partnership with allies, the business community, and Canadian consumers who will likely bear the burden of this tax,” said ITI Senior Director of Tax and Trade Policy Megan Funkhouser. “The ill-advised action defies Canada’s commitments in the U.S.-Mexico-Canada Agreement, undermines its participation in the OECD/G20 Inclusive Framework’s multilateral tax project, and jeopardizes its own economic growth. We urge the Biden Administration to immediately address Canada’s measure that targets U.S. companies and attempts to ring-fence the digital economy. At the same time, we hope negotiators can work beyond this troubling development and advance their effort to reach a multilateral, consensus-based solution to address the tax challenges arising from digitalization.”
ITI joined a letter with almost a dozen other associations calling on the Administration to initiate consultations in response to Canada’s adoption of a digital services tax. ITI’s Megan Funkhouser also wrote a blog on the topic here.