WASHINGTON DC – National Foreign Trade Council (NFTC) Vice President for International Tax Policy Anne Gordon today issued a statement following the publication of Canada’s proposed Digital Services Tax (DST):
“We are acutely disappointed with Canada’s decision today to move forward with their plans to impose a DST and their refusal to join the close-to-unanimous Pillar One DST moratorium announced by the OECD Inclusive Framework (IF) members last month.
“The text published today shows that Canada’s DST is clearly discriminatory towards U.S. companies and will harm international efforts to come to a global consensus on issues of taxation in the digital economy. The retroactive application of the measure is also extremely troubling.
“This move is shortsighted. By endangering the international process, it also increases the likelihood that other countries will implement their own unilateral measures, therefore creating a web of discriminatory, country-specific DSTs that will hinder the ability of our companies to do business abroad.
“We urge Canada to reconsider implementation of the DST and to continue actively engaging on Pillar One before moving forward with any unilateral measures.”
About the NFTC
The National Foreign Trade Council (NFTC) is the premier business association advancing trade and tax policies that support access to the global marketplace. Founded in 1914, NFTC promotes an open, rules-based global economy on behalf of a diverse membership of U.S.-based businesses