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Canada's Finance Minister Optimistic about Settling Dispute with US on Digital Services Tax

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Canadian Finance Minister Chrystia Freeland expresses cautious optimism about resolving the dispute with the United States over Ottawa's planned digital services tax on large technology companies.

Canada's Deputy Prime Minister and Minister of Finance Freeland speaks to journalists on Parliament Hill in Ottawa

The digital services plan aims to address the challenge of taxing digital giants like Alphabet and Amazon.com that can book their profits in low-tax countries. "I was in Washington last week and we did have some good conversations about the DST, including at officials level. I remain cautiously optimistic that we'll be able to reach an understanding with our American partners," Freeland told reporters in Ottawa.

The process of negotiating a global tax deal has dragged on, and it was pushed back further in July to allow for more negotiations. Countries other than Canada that have a DST agreed to wait for the global deal for at least another year, instead of implementing their taxes.

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