From Michael Power’s Dot Indicia Blog:
Have any of the “privacy experts” considered that every single brokerage firm already performs the same filter and requires the same determination for people who want to trade on US stock exchanges? All IIROC firms already have agreements with the IRS to share US Person determination in order to avoid US withholding taxes for all of their customers.
The privacy impact is true on US Persons, however that being said, these persons should either file their US taxes or relinquish citizenship, they have a choice! Tax treaties ensure relatively fair treatment.
Non-US persons in Canada will be slightly inconvenienced with being asked if they are truly non-US. Their information WILL BE PROTECTED and not sent to CRA (except for regular tax reporting).
It is absolutely astounding how quick groups like the green party are to complain that the top 1% don’t pay their share, however once a critical, world-wide tax evasion tool like FATCA comes in, they are quick to complain about privacy.
No countries in the world would be able to budge without the US moving first, so YEAH to the US for moving the bar and allowing everyone else to catch up. (Europe already moving to multilateral)
In the end, FATCA will likely make Canada more money then US by making snowbird report their foreign holdings honestly for fear of recipricol reporting coming in 2 years. Should we feel sorry for those tax evaders? I don’t, as they are getting their fair share of health care when nneeded, it is waiting for them!
I would encourage you to provide a more balanced set of positions on FATCA for your readers.
Remember — Tax evaded proceeds are criminal proceeds internationally! We have the same obligation in Canada to isolate and not shelter them as any other country does for us.
Privacy is not a shelter for illegal activity.
I suggest Brockers may want to make their way over to Michael Power blog and comment.