News

Washington, D.C. – Today, Representatives Darin LaHood (IL-18) and Suzan DelBene (WA-01), Co-chairs of the Digital Trade Caucus, issued the following statement on Canada’s decision to move forward with a unilateral Digital Service Tax (DST):

“We are concerned with Canada’s decision to move forward with a unilateral DST. If enacted, this tax would erode confidence in the October 8 OECD/G20 agreement reached by the United States, Canada, and more than 130 other countries. This agreement was designed to address global taxation issues and end the worldwide proliferation of DSTs, which disproportionately hurt American businesses and their workers. Although Canada’s proposed DST would not go into effect until 2024, it would apply retroactively to all earnings starting January 1, 2022, putting at risk the long-term stability of the global tax agreement and creating immediate, significant tax complexities for American companies.

“We appreciate the strong, historic relationship between the U.S. and Canada and urge the Canadian government to not enact a new DST and instead support international efforts to reach a consensus on these complex issues.”