OTTAWA — The United States ambassador to Canada says there could be a 'big fight' looming if the federal government goes through with its plans for a digital...
OTTAWA — The United States ambassador to Canada says there could be a "big fight" looming if the federal government goes through with its plans for a digital services tax.
It was delayed until 2024 in hopes of waiting out a similar international digital tax regime being assembled under the Organization for Economic Co-operation and Development. "That will be an area of contention unless it is resolved," Cohen told his audience when the question of a digital services tax came up.
The prospect of Ottawa imposing a digital tax on an industry that's heavily concentrated south of the border has been steadily gaining traction in Washington as a significant irritant in Canada-U.S. relations. "Given our prolific trading relationship with Canada, its retroactive DST proposal would be especially damaging to U.S. industry and workers."
Canada's position, they warned, would set a "harmful precedent" for other countries taking part in the OECD effort that might be inclined to follow the Canadian lead and impose taxes on U.S. digital services.Trump Biographer Predicts How Ivanka Trump’s Delayed Testimony May Backfire
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