Washington D.C. – National Foreign Trade Council (NFTC) President Jake Colvin today issued a statement following passage by the Canadian Parliament of a bill implementing a Digital Services Tax (DST), which is expected to become law imminently:
“Yesterday’s passage of Canada’s retroactive and discriminatory DST legislation is deeply disappointing. NFTC has repeatedly stated that this ill-advised step reflects fundamentally unwise tax policy and unfairly targets a broad range of American companies. As OECD Pillar One negotiations are still underway, this undermines the collaborative, good-faith work that other countries are engaged in to reach a more durable international consensus on digital economy taxation that avoids a patchwork of country-specific DSTs.
“The enactment of the DST is the latest in a troubling trend of actions taken by the Canadian government directed toward U.S. companies.
“The Biden Administration has repeatedly expressed to Canada – to no avail – that it has concerns with fiscal policies, including the DST, that single out American companies while excluding national firms and indicated that, if Canada adopted a DST, USTR would examine all options, including under our trade agreements and domestic statutes.
“The time for action has arrived. With the DST on the verge of being signed into law, we are calling on Ambassador Tai to lead a strong U.S. response that holds Canada accountable to its trade obligations and defends the interests of U.S. companies.”
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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.
