The letter asks the US Treasury, USTR, and US Ambassador to Canada to urge Canadian policymakers to halt the Digital Services Tax.
Washington D.C., November 30th, 2021 – The Developers Alliance has joined ten other organizations in sending a letter requesting that U.S. Treasury Secretary Janet Yellen, U.S. Trade Representative Katherine Tai, and U.S. Ambassador to Canada David Cohen formally urge their Canadian counterparts to stop the unilateral, retroactive digital services tax, or DST. The law is set to be implemented on January 1, 2022.
In their letter, the organizations’ note that the tax runs contrary to the spirit of the Organization for Economic Co-operation and Development’s (OECD) recent agreement and is inconsistent with Canada’s trade commitments.
“The OECD agreement states “[n]o newly enacted Digital Services Taxes or other relevant similar measures will be imposed on any company from 8 October 2021 and until the earlier of 31 December 2023 or the coming into force of the [Multilateral Convention].” Despite this agreement, Canada announced its intention to move ahead with legislation and finalize the enactment of a DST by January 1, 2022…. Canada’s determination to pursue a unilateral, retroactive DST immediately following the OECD’s much-heralded final agreement threatens years of work by the U.S. government.”
The undersigned organizations include:
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Developers Alliance
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Internet Association
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ACT | The App Association
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Chamber of Progress
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Computer and Communications Industry Association
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Engine
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NetChoice
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Silicon Valley Leadership Group
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Software & Information Industry Association
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TechNet
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Travel Technology Association
“OECD has worked hard to come to an agreement over the last few years to ensure an equitable taxation regime in a modern, digital world,” stated Sarah Richard, Policy Counsel & Head of US Policy. “Canada disregarding OECD’s efforts and implementing retroactive taxation policies goes against the spirit of OECD’s work, is counterproductive to international negotiations, and most importantly, negatively impacts the companies that developers support. “
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About The Developers Alliance
The Developers Alliance is the world’s leading advocate for software developers and the companies invested in their success. Alliance members include industry leaders in consumer, enterprise, industrial, and emerging software development, and a global network of more than 70,000 developers.
