TEI Comments on Canadian Digital Services Tax

On September 8, 2023, TEI submitted comments on a revised draft of the Canadian Digital Services Tax (DST) to Canada's Department of Finance. The comments included requests that (1) Canada join with the other 138 countries to support the extension of the multilateral negotiations and extend the moratorium on implementing Canada’s standalone digital services DST; (2) Canadian corporate income taxes should be creditable against DST liabilities under the Proposed DSTA to eliminate double taxation; (3) the retroactive application of tax with respect to revenues earned since 2022 should be removed from the Proposed DSTA; and (4) the Canadian government should take into consideration other transitional terms with respect to the DST and OECD’s Pillar One solution, as agreed upon between the United States and countries which have enacted DSTs into law.

Read the comments here.