TEI Comments on Canadian DST

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On September 8, TEI submitted comments on a revised draft of the Canadian Digital Services Tax (DST) to the Department of Finance Canada. The comments included requests that 1) Canada join with the other 138 countries collaborating on the OECD’s Inclusive Framework 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 DST Act to eliminate double taxation; 3) the retroactive application of tax with respect to revenues earned since 2022 should be removed from the proposed DST Act; and 4) the Canadian government should take into consideration other transitional terms with respect to the DST and Organisation for Economic Co-operation and Development’s Pillar One solution, as agreed upon between the United States and countries that have enacted DSTs into law.

TEI’s comments were prepared under the aegis of TEI’s Canadian Commodity Tax Committee, whose chair is Jun Ping of Enbridge and whose legal staff liaison is Kelly Madigan, TEI tax counsel. Read the comments here.


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