US Envoy Warns of Big Fight If Canada Digital Tax Takes Effect

Nov. 1, 2023, 12:09 AM UTC

The US and Canada are headed toward a “big fight” over Canada’s plans to enact a digital services tax unless a solution is found, US Ambassador David Cohen said Tuesday.

“That will be an area of contention unless it is resolved,” Cohen said in a speech to the Canadian Club in Ottawa. “There’s a place where we’re either going to have agreement or we’re going to have a big fight,” he added later.

Canada has pledged to move ahead with a 3% tax on large digital firms by Jan. 1, 2024, if a global multilateral reform of corporate taxation ...

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