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Globe says Microsoft hears CRA refunding $647M from DST

2026-05-01 07:57 ET - In the News

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The Globe and Mail reports in its Friday edition that the Canada Revenue Agency is refunding about $647-million collected from the digital services tax after Ottawa repealed the policy last year due to threats from President Donald Trump. The Globe's Rudy Mezzetta writes that the repeal received royal assent on March 26, allowing the CRA to refund companies that paid the tax before its cancellation, which occurred just before the due date of June 30, 2025. The CRA had said it couldn't refund the tax collected until legislation to revoke it had passed. The DST was an annual 3-per-cent tax applied on digital services revenue generated in Canada mostly by large tech giants. The Parliamentary Budget Office projected in an October, 2023, report that the DST would increase federal government revenues by $7.2-billion over five years. Of the $647-million collected from companies before the DST was cancelled, the CRA has applied $358-million toward those companies' other outstanding tax liabilities instead of issuing a refund directly, said CRA spokesman Kim Thiffault. As of April 23, about $154-million had been refunded to companies, including $4-million in interest, with remaining refunds to be completed by April 30.

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