Jason Oxman President and Chief Executive Officer at Information Technology Industry Council | Official website
The global tech trade association ITI has voiced significant concern following Canada's reported implementation of a digital services tax. The measure, according to ITI, contravenes long-standing international tax and trade norms and threatens to complicate ongoing international tax negotiations within the OECD/G20 Inclusive Framework.
"Canada’s digital services tax sends a damaging blow to its partnership with allies, the business community, and Canadian consumers who will likely bear the burden of this tax," said ITI Senior Director of Tax and Trade Policy Megan Funkhouser. "The ill-advised action defies Canada's commitments in the U.S.-Mexico-Canada Agreement, undermines its participation in the OECD/G20 Inclusive Framework’s multilateral tax project, and jeopardizes its own economic growth. We urge the Biden Administration to immediately address Canada’s measure that targets U.S. companies and attempts to ring-fence the digital economy. At the same time, we hope negotiators can work beyond this troubling development and advance their effort to reach a multilateral, consensus-based solution to address the tax challenges arising from digitalization."
ITI has joined nearly a dozen other associations in calling on the Administration to initiate consultations in response to Canada’s adoption of a digital services tax. Additionally, Megan Funkhouser has written a blog on this topic.
