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. U.S.
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. It also called into question whether the measure would constitute a violation of Canada's obligations under the U.S.-Mexico-Canada Agreement or its commitments to World Trade Organization treaties.
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