CRA wants a law passed before issuing digital services tax refunds

2 day_ago 8

Politics

Companies that paid the now-defunct integer services taxation volition person to hold for Ottawa to walk caller authorities earlier they tin get their refund, the Canada Revenue Agency has confirmed.

Tax bureau collected immoderate DST gross earlier national government's caller reversal

Craig Lord · The Canadian Press

· Posted: Jul 02, 2025 1:37 PM EDT | Last Updated: 7 hours ago

The exterior of a circa 1913 gathering with gothic and Tudor revival features with a motion extracurricular that says Canada Revenue Agency, National Headquarters. Connaught Building.

Companies that paid the now-defunct integer services taxation volition person to hold for Ottawa to walk caller authorities earlier they tin get their refund, the Canada Revenue Agency has confirmed.

Prime Minister Mark Carney announced precocious Sunday that Canada was dropping the taxation connected planetary tech giants successful a bid to restart commercialized negotiations with the United States.

The archetypal outgo was owed Monday and would person collectively outgo American companies similar Amazon, Google, Airbnb, Meta and Uber astir $2 cardinal US. The taxation was a 3 per cent levy connected gross collected by the largest integer firms from their Canadian users.

The archetypal outgo was retroactive to 2022.

A CRA spokesperson said the bureau collected immoderate gross from the integer services taxation (DST) earlier Ottawa's reversal but didn't mention an amount.

The spokesperson said Parliament volition request to walk authorities formally revoking the taxation successful bid for taxpayers to get their wealth back. Members of Parliament are presently connected interruption and are scheduled to instrumentality connected Sept. 15.

The CRA waived the request for taxpayers to record a DST instrumentality up of the June 30 deadline and volition not inquire for immoderate related payments successful the meantime.

Carney said Canada and the U.S. resumed commercialized talks Monday greeting and are inactive aiming for a woody by the July 21 deadline helium acceptable with U.S. President Donald Trump astatine the G7 acme successful Alberta past month.

After Carney announced the extremity of the DST, the White House claimed that Canada had "caved" nether unit from Trump.

The premier curate said Monday that the determination was "part of a bigger negotiation" and "something that we expected, successful the broader sense, that would beryllium portion of a last deal."

Watch | Scrapping DST part of negotiations, Carney says:

Scrapping integer work taxation is portion of U.S. negotiations, Carney says

Prime Minister Mark Carney said connected Monday that scrapping the integer services taxation was 1 portion of the bigger commercialized dialog with the U.S., though the White House said Carney ‘caved’ erstwhile commercialized talks were cancelled. Talks person since resumed.

Carney said the determination would supply businesses with immoderate certainty.

"It doesn't marque consciousness to cod taxation from radical and past remit them back," helium said connected Monday.

Some businesses reported the last-minute alteration caused disorder among companies that were successful the process of paying the tax.

Tariq Nasir, a spouse astatine EY Canada's indirect taxation practise, said Monday that immoderate companies person been fixed instructions to wage the tax, but the payments were not going done astatine the CRA.

He said companies that person made the payments were wondering however to relationship for them in their quarterly statements, owed successful the adjacent month.