ACT | The App Association has issued a statement opposing Bill C-59’s proposal to impose a digital services tax (DST) in Canada. According to the association, the changes proposed by Bill C-59 will disrupt business planning and research and development cycles for small business innovators. They argue that these changes are inconsistent with international tax standards and could negatively impact investment and innovation in Canada.

The association also contends that Bill C-59 undermines the ongoing OECD/G20 Inclusive Framework on base erosion and profit shifting. In light of these concerns, ACT | The App Association is urging the United States Trade Representative (USTR) to initiate a formal dispute investigation. This would begin with consultations under the U.S.-Mexico-Canada Agreement’s framework to protect small business innovators.

“ACT | The App Association strongly opposes Bill C-59’s proposal to impose a digital services tax (DST) for Canada. The changes to Canadian law that C-59 will upend business planning and research and development cycles for small business innovators and are inconsistent with international tax standards, chilling the investment and innovation climate in Canada. In addition, C-59 undermines the ongoing OECD/G20 Inclusive Framework on base erosion and profit shifting. The App Association encourages the United States Trade Representative (USTR) to initiate a formal dispute investigation, beginning with consultations under the U.S.-Mexico-Canada Agreement’s framework, to continue defending small business innovators.”