CRA refunding $647-million collected from cancelled digital services tax
The Canada Revenue Agency is refunding approximately $647 million collected from the digital services tax (DST) after the federal government repealed the tax in response to U.S. trade pressure. Of the amount collected, $358 million was applied to companies' existing tax liabilities, while about $154 million has been directly refunded, including interest. The DST, a 3% tax on digital services revenue from large tech firms, was implemented in 2024 but cancelled before full enforcement.
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Open this photo in gallery:The CRA said it couldn’t refund the digital services tax collected until legislation to revoke the tax had passed.Adrian Wyld/The Canadian PressShareSave for laterPlease log in to bookmark this story.Log InCreate Free AccountThe Canada Revenue Agency says it’s refunding approximately $647-million it had collected from the digital services tax (DST) before Ottawa repealed the policy last year in response to threats from U.S. President Donald Trump to end trade talks with Canada.The legislation to repeal the Digital Services Tax Act, included in the federal government’s budget bill, received royal assent on March 26, clearing the way for CRA to refund companies that had already paid the tax before it was cancelled the day before the taxes were due on June 30,…
Excerpt limited to ~120 words for fair-use compliance. The full article is at The Globe and Mail.
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