CBC World at Six January 28, 2014, Starts @ 10:00 James Fitz-Morris: FATCA
NOTE: Looks like the link above refreshes to new date’s broadcast each day. I cannot find an archived link for CBC, The World at Six for January 28, 2014.
Government of Canada seeking RECIPROCITY … one of the biggest sticking points in the negotiations as the U.S. WON’T LET OTHER COUNTRIES’ LAWS TO BE ENFORCED ON ITS TERRITORY!
@IRSCompliantForever
That’s my take too, but some are speculating that Canada may want FULL reciprocity, that is to say reporting on Canadian citizens resident in the US as well as its residents, as they expect the US will never agree to deliver on that.
@IRScompliantforever
Yes, I read it the same way. Canada will sign if there is full reciprocity. The question is, will Congress allow reciprocity on US residents? If Congress says NO, where does that leave Canada?
Speaking of reciprocity, etc., I’ve just gotten a few things off my chest: a compilation of comments in answer to my morning email from the Liberal Party:
http://isaacbrocksociety.ca/2014/01/29/thank-you-elizabeth-may-justin-trudeau-listen-up/comment-page-1/#comment-1048022
All of this talk about reciprocity is giving me a headache. I understand that Canada’s insistence on US reciprocity might be a valid stalling/negotiating ploy; we know the US will never agree to it. But in the end reciprocity is of absolutely no benefit to Canada.
For a Canadian who is resident in the US, the Canadian government doesn’t attempt to tax them; therefore any information would be useless to the CRA. For a Canadian who is resident in Canada but has US investments any income on those investments will have tax withheld at the US source. So even though that income is taxable in Canada, that person will then claim a foreign tax credit on their Canadian return. The result is no revenue coming to Canada, it’s already been taxed by the US. All of this has been covered by treaty for years. If I’m missing something will someone please explain it to me?
The bottom line is that FATCA even with reciprocity would be of NO benefit to Canada. I hope our government realizes this and stalls it into the next century. My notion of an IGA is to simply have any interested party refer to the existing treaty. That’s all we need.
@maz57
I believe you are right. Full reciprocity is only of use if Canada were to have citizenship based taxation, which it does not.
This thread is reminding me of a game we used to play as kids, where you sit in a circle, and one kid whispers something in the ear of the kid sitting next to him/her. The message gets passed on in turn, until the last kid who has to repeat the message out loud to the group. Usually what the last kid says is completely off the mark from what the first kid whispered.
That’s clear, but Canada insisting on full reciprocity would derail FATCA, many speculate.
@WhiteKat
It’s called broken telephone. In this case, we’ll call it broken keyboard.
@bubblebustin,
LOL. I had no idea there was a name for it. Broken keyboard is right!
Northern Shrike and maz57,
Of course — how many countries realize this, including Canada? And, they fall right in line with the US’ empty promises. And so would anyone reading in media stories describing US “generosity” of reciprocity. It takes a bit more knowledge and reflection to understand reciprocity would not benefit any countries — unless they want to change from RBT to CBT as another step into absurdity.
http://ca.news.yahoo.com/video/ny-rep-threatens-throw-reporter-121401142.html
Here is my Congressional representative threatening to throw a reporter off a balcony. This is what we’re dealing with, people!
He was obviously moved by the president’s speech.
Holy, Hannah!!
@Marie
That video was disgusting. What a disgusting man. He typifies what Congress has become. a bunch of thugs.
@Calgary411
Reciprocity might benefit a country that does not have a treaty (like Canada-US) for exchange of tax information. There are wealthy individuals in Latin America with bank accounts and investments in Florida, who are likely not reporting these accounts to their home countries. That’s why banking associations in Florida oppose reciprocity; they fear flight of capital.
Does anyone know how to get a link to last night’s News at Six. The link here now seems to take me to tonight’s news about Justin Beiber, rather than last night’s about FATCA.
Thanks.
The link must refresh each day, Lynne. I am updating I-tune Store to see if I can download prior CBC podcasts — I can’t see that particular one anywhere at CBC (but may be missing it).
To be fair to that Congressional Representative threatening to throw the reporter off the balcony he was a key ally of ACA and AARO in trying to beat back Carl Levin’s Son of FATCA Passport Revocation bill. Not that I am in favor of throwing people off of balconies but unfortunately we can’t be too picky about our allies.
Sorry, can’t seem to get prior World at Six podcasts (looks the link above would refresh to the new date’s broadcast each day). I will note that it no longer works in the post.