US launches an investigation into digital services taxes

The Office of the United States Trade Representative (USTR) is beginning investigations into digital services taxes that have been adopted or are being considered by some of its trading partners. The investigations will be conducted under Trade Act 1974 s 301. This gives the USTR broad authority to investigate and respond to a foreign country's action which may be discriminatory and negatively affect US commerce.

USTR Robert Lighthizer said: ‘President Trump is concerned that many of our trading partners are adopting tax schemes designed to unfairly target our companies. We are prepared to take all appropriate action to defend our businesses and workers against any such discrimination.’

The USTR order said: ‘The investigation initially will focus on the following concerns with DSTs: discrimination against US companies; retroactivity; and possibly unreasonable tax policy. With respect to tax policy the DSTs may diverge from norms reflected in the...