Industry Raises Concerns with Canadian Digital Tax Plans

BY Heather Greenfield
November 15, 2019

Washington — The Computer & Communications Industry Association joined 14 other associations in sending a letter to the U.S. Trade Representative expressing concerns with Canada’s announced plans to pursue a digital services tax.  U.S. officials should discourage Canada from pursuing a unilateral digital tax, and instead continue to work within ongoing multilateral discussions regarding necessary changes to global tax rules. 

CCIA cited Canada’s plans to pursue a digital services tax as a threat to digital trade for U.S. services in a recent submission to USTR.  These plans appear to depart from Canada’s previous position on support for the OECD multilateral tax reform rather than a unilateral measure at the national level.  CCIA continues to discourage national digital services taxes, and encourages U.S. officials to deliver a strong response to any country that chooses to move forward with taxes that target U.S. firms. 

The following can be attributed to CCIA President & CEO Ed Black:

“At a time where parties are looking to implement the USMCA,  it is critical that USTR send a strong and clear signal to Canada that unilateral digital tax measures are unacceptable and threaten to undermine the recent success of the updated North American trade agreement.”

For media inquiries, please contact: Heather Greenfield hgreenfield@ccianet.org

Related Articles

Tech Associations Offer Digital Trade Priorities for Biden-Harris Administration

Jan 22, 2021

Washington — The Computer & Communications Industry Association joined 4 other associations in a statement to the incoming Biden Administration on digital trade. This is critical at a time when some longtime trading partners are enacting new barriers to cross-border delivery of digital services and goods. Industry encourages the Biden-Harris Administration to make open, rules-based…

CCIA Calls For Strong U.S. Response as Result of Section 301 Investigations into Digital Tax

Jan 14, 2021

Washington — The U.S. Trade Representative has released its reports in the Section 301 investigations into the digital services taxes (DSTs) of the United Kingdom, Spain, and Austria. USTR concluded that these taxes were discriminatory against U.S. tech firms, and are inconsistent with prevailing principles of international taxation, and burden U.S. commerce. This follows last…

CCIA: Anticipated U.S. Response To French Digital Taxes On U.S. Companies is Crucial

Jan 5, 2021

Washington — In response to French digital taxes aimed at U.S. companies, the U.S. Trade Representative is expected to respond tomorrow with tariffs on $1.3 billion on French products. USTR concluded in its Section 301 investigation that the French tax discriminated against US firms. USTR announced these tariffs last summer, but suspended the collection on…