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CEO DATELINE – Associations urge U.S. to oppose Canadian digital services tax

Nov. 15, 2019
By Walt Williams

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More than a dozen business groups are asking U.S. officials step up efforts to convince Canada to scrap a proposed tax on digital services provided by large technology companies such as Google.

Canadian Prime Minister Justin Trudeau has proposed a tax similar to the 3% sales tax imposed by France earlier this year on multinational internet companies. The U.S. then negotiated a compromise with France that allowed companies to pay less in other taxes that they would have owed the country, CNN reported. https://cnn.it/2Oeb9wl

U.S.-based associations say the Canadian proposal would violate the terms of the North American Free Trade Agreement and its proposed replacement, the U.S.-Mexico-Canada Agreement, which has yet to be ratified by Congress.

“Our industries strongly support the new commitments made on digital free trade in the USMCA, and are disheartened to see the Canadian government pursue a measure that goes against the spirit of that new chapter before the agreement has even been ratified,” the groups said in a letter to top U.S. trade officials.

The letter’s signatories include ACT | The App Association, Consumer Technology Association, Entertainment Software Association, Internet Association and U.S. Chamber of Commerce. http://bit.ly/2CNjUrU

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