Truce on Digital-Tax Extension Sets Up US Clash With Canada

  • Canada rejects DST freeze on lack of Pillar One timeline
  • DST truce extension gives Congress more time to weigh tax deal
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The Biden administration secured an extension of a worldwide freeze on new digital taxes, putting it on a collision course with Canada after Ottawa refused to endorse the deal.

The Organization for Economic Cooperation and Development unveiled the one-year extension in Paris Wednesday. This gives the more than 140 nations involved until the end of 2024 to ratify a new global rule-book for allocating taxing rights over the largest multinationals, known as OECD Pillar One.