Canadian official: U.S. ‘explicitly’ tolerates digital services taxes

Canada is proceeding with plans to impose a digital services tax opposed by the U.S. in part because the Biden administration has been “explicitly tolerating” DSTs advanced by a host of other countries, a Canadian government official said this week. Countries participating in the OECD’s Inclusive Framework have been negotiating a two-pillar deal to allow countries to tax foreign companies doing business within their borders despite no physical presence there; it would also obviate a need for unilateral digital service...