CRA refunding 30 U.S. companies $148 million after scrapping digital services tax

The Canada Revenue Agency (CRA) is refunding more than $148 million collected as part of the digital services tax (DST) to 30 U.S.-based companies.

The DST was a 3 per cent annual tax on digital services revenue generated in Canada by large tech companies, many of which are based in the U.S.

However, the federal government rescinded the policy in June 2025 to advance trade talks between Canada and the U.S.

Finance minister François-Philippe Champagne said in a statement at the time: “Rescinding the digital services tax will allow the negotiations of a new economic and security relationship with the United States to make vital progress and reinforce our work to create jobs and build prosperity for all Canadians.”

Legislation to repeal the DST received royal assent on March 26, allowing CRA to begin refunding the money collected from companies before the tax was cancelled.

“Before the government halted collection of the digital services tax on June 30, 2025, the Canada Revenue Agency collected approximately $647 million,” CRA media relations officer Nina Ioussoupova told National Post in an email.

More than $148 million of the money collected came from businesses based in the U.S., the CRA has confirmed.

“Thirty U.S.-incorporated businesses made payments to the Canada Revenue Agency totalling $148,226,051.17 in relation to the Digital Services Tax,” Ioussoupova said in a separate email.

“These payments account for approximately 23% of the total revenue collected under the tax.”

Of the total amount collected, $358 million was used to cover existing tax liabilities owed by the same taxpayers.

By late April, about $154 million was refunded to taxpayers, including close to $4 million in interest, and the CRA planned to have the refunds completed by the end of that month.

Over five fiscal years, from 2021–22 to 2025–26, the CRA received approximately $30 million to administer the digital services tax, covering the implementation of the new tax and related costs.

The U.S. government views digital services taxes, which have been implemented by countries including the U.K., France, Italy and Spain, as unfairly targeting U.S. companies.

In a post on Truth Social in August 2025, Trump said he would “stand up to countries that attack our incredible American Tech Companies.”

“Digital taxes, digital services legislation, and digital markets regulations are all designed to harm, or discriminate against, American technology,” he wrote.

He said that he would “impose substantial additional tariffs” on exports to the U.S. if the “discriminatory” tariffs weren’t removed.

However, Washington later backed away from the threatened hikes after G7 finance ministers announced the U.S. would be excluded from the OECD-led global minimum tax regime.

• CRA refunding $647 million collected from repealed digital service tax
• Trump forced Canada to scrap its digital services tax — but did he save Carney from bad policy?

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