Canada Nixing Digital Services Tax Poses Several Legal Questions

The announcement that Canada would rescind its digital services tax (DST) a day before initial tax returns and payments were due leaves open many questions.

Davies Tax partners Ian Caines, Sabrina Han and Michael Kandev recently authored an article for Bloomberg Tax in which they offer their thoughts and analysis on Canada nixing the DST, including the route to rescission chosen by the government and its potential impact.

Key Takeaways:

• The announced “rescission” of the DST has not yet been enacted into law, and exactly how and when it will legally occur remains to be seen.
• It is also unclear whether ending the DST will lead to any other compensatory changes in Canadian tax policy.
• The Canadian approach will no doubt be influenced by continuing developments, including the fate of similar taxes in other countries.

Read the full article here.