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

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