Canada Digital Tax Triggers Rebukes From US, Tech Companies (1)

July 8, 2024, 8:45 AM UTCUpdated: July 9, 2024, 12:19 AM UTC

Canada’s recent decision to follow through on its plan to impose a 3% digital services tax on tech giants has stirred up criticism once again from the Biden administration and US multinationals—the main targets of such taxes.

Canada published July 3 a cabinet order that put the Digital Services Tax Act into effect on June 28.

“Treasury continues to oppose all tax measures that discriminate against U.S. businesses,” a department spokesperson said in a statement. “We encourage all countries to finalize the work on the Pillar One agreement.”

Pillar One, part of the OECD-led global tax deal that countries are ...

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