The i2Coalition is among more than a dozen influential organizations calling on the Canadian Government to reconsider its proposal of a digital services tax (DST) modelled after the French DST.
Such a tax would place an undue burden on the digital economy and undermine U.S. investment in Canada’s technology market. It would also threaten compliance with its commitments under the World Trade Organization (WTO), and other trade agreements including the United-States-Mexico-Canada Agreement (USMCA) which is nearing ratification.
This proposed 3 percent tax on advertising services and digital intermediation services would be for companies with global revenue over $1 billion CAD ($755 million USD) and Canadian revenue over $40 million CAD ($30.4 million USD), which is a scope that appears to specifically target U.S.-based companies.
Read more about our joint position in the letter below: