Fact Check: Canada is still pursuing an international tax despite scrapping its digital services tax.

Published June 30, 2025

•By

VERDICT

Needs Research

# Fact Check: Canada is still pursuing an international tax despite scrapping its digital services tax. ## What We Know Canada recently scrapped its ...

Fact Check: Canada is still pursuing an international tax despite scrapping its digital services tax.

What We Know

Canada recently scrapped its digital services tax (DST), which was designed to target large technology firms, particularly those based in the U.S. This decision was made just hours before the tax was set to take effect, as part of an effort to advance stalled trade negotiations with the United States (Reuters). The DST was originally announced in 2020 to ensure that tech companies generating revenue from Canadian users would contribute to the Canadian tax system (Canada.ca).

Despite the cancellation of the DST, Canadian officials have indicated a preference for a multilateral agreement on digital services taxation. The Canadian government has been actively engaged in discussions with international partners, including the U.S., to establish a broader framework for taxing digital services (Washington Post, Canada.ca).

Analysis

The claim that Canada is still pursuing an international tax despite scrapping its DST is partially supported by the context surrounding the cancellation of the DST. The Canadian government has emphasized its commitment to a multilateral approach to digital taxation, suggesting that while the specific DST has been rescinded, the broader goal of implementing an international tax framework remains intact (CNBC).

However, the reliability of the sources is crucial in evaluating this claim. The information from Reuters and Canada.ca is credible, as they provide direct insights into government actions and intentions. Conversely, while Washington Post and CNBC also report on the situation, they rely on interpretations of government statements, which may introduce bias or misinterpretation.

It is important to note that the cancellation of the DST could be seen as a strategic move rather than a complete abandonment of the idea of taxing digital services. The Canadian government’s ongoing discussions with international partners indicate that they are still pursuing avenues to implement a form of international taxation, albeit through a different mechanism than the DST.

Conclusion

Needs Research. While the cancellation of the digital services tax is a significant development, the Canadian government’s ongoing commitment to pursuing a multilateral agreement on international taxation suggests that the broader goal of taxing digital services remains a priority. Further investigation is needed to clarify the specific pathways Canada intends to pursue in this area and how these discussions may evolve in the context of international trade relations.

Sources

Have a claim you want to verify? It's 100% Free!

Our AI-powered fact-checker analyzes claims against thousands of reliable sources and provides evidence-based verdicts in seconds. Completely free with no registration required.

💡 Try:

"Coffee helps you live longer"

✓100% Free

✓No Registration

✓Instant Results