WASHINGTON - ITI, the global voice of the tech sector, released the following statement from president and CEO Dean Garfield reacting to Secretary of Treasury Steve Mnuchin’s statement on the European Union’s Digital Service Tax Proposal.
“The imposition of a digital tax poses a real and significant threat to companies in all sectors of the economy. While the notion of a digital tax isn’t new, the likelihood of its implementation is gaining momentum and its possible passage should be taken seriously by all major economies. We welcome the administration’s attention to this issue and share its concerns. Should a digital tax move forward, it would open the way for potential future tax policies affecting other industries that are increasingly digitalizing their operations. This would set a dangerous precedent, lead to double taxation, and raise potential violations with standing international tax treaties and trade commitments. We join the administration in urging the European Union to take a multilateral approach to address these complex and far-reaching tax policies and to finish the OECD process with the United States and other nations.”