Washington – The United States Department of Treasury today responded to a letter sent by Senate Finance Committee Chairman Chuck Grassley (R-Iowa) and Ranking Member Ron Wyden (D-Ore.) pressing Secretary Steven Mnuchin to consider using all tools available under U.S. law, including the application of section 891 of the tax code, to convince the French government not to move forward with implementing a digital services tax (DST) that would unfairly target some U.S.-based companies. Treasury confirmed that it is reviewing a range of potential responses, including Grassley’s and Wyden’s.
“If France unilaterally adopts a DST and the United States does not respond, other countries may impose similar unilateral measures,” Treasury wrote to Grassley and Wyden. “Because of this possibility, Treasury is actively engaged in a coordinated effort across the Administration, and we are evaluating a range of potential U.S. responses to the adoption of a French DST. Options under review include consideration of the Internal Revenue Code authorities noted in your letter among other broader strategies.”
Grassley and Wyden’s June 24 letter to Treasury can be found HERE.
Treasury’s July 11 response to Grassley and Wyden can be found HERE.
Separately, Grassley and Wyden yesterday applauded the U.S. Trade Representative’s opening of a Section 301 investigation into the French DST.