32 thoughts on “Is Ottawa stalling on FATCA tax crackdown because U.S. isn’t ready?”

1. @calgary411

   Yes, and the Canadian population would rise up if everyone’s account info was sent to the IRS!
   Thank God for our Charter and Peter Hogg to point out our protection. CBT is unjust and we will fight this injustice to the end!

2. @GeorgeIII

   I haven’t come this far and spent what i have to become non-compliant. That would be completely idiotic and get me further away from renouncing.

3. Bubblestin
   How much did that scumbag fear mongering lawyer cost you?

4. @Mr. A:

   I agree – Peter Hogg suggested Canadian bank reporting on US residents, not US citizens living in Canada, in his letter to the Dept. of Finance. Reporting on US residents would not be discriminatory under section 15 of our Charter, whereas reporting based on citizenship would be.

   Excellent. That provides a constitutional basis to limit such reporting, in addition to the reciprocity argument.

   I hope Mr. Hogg’s letter reaches receptive ears.

5. Jan 28th 2014 UPDATE ….Statement from Green Party Canada

   http://www.greenparty.ca/statement/2013-01-28/backgrounder-canada-and-fatca

6. Chears,

   Thanks for this — I will make a post of it.

7. Well the reciprocity issue is resurfacing – ala Allison Christians comments.
   http://www.lexisnexis.com/legalnewsroom/tax-law/b/fatcacentral/archive/2014/02/03/political-pushback-on-fatca.aspx

   “While the reciprocal version of the Model Agreement includes a policy commitment to pursue equivalent levels of reciprocal automatic exchange in the future, no additional obligations will be imposed on U.S. financial institutions unless and until additional laws or regulations are adopted in the United States.

   A serious question has arisen as to the legality of any Intergovernmental Agreements (IGAs) and specifically any provision for reciprocity. [“The Big Picture: The Dubious Legal Pedigree of IGAs (and Why It Matters),” by Allison Christians, taxanalysts® Worldwide Tax Daily, February 11, 2013.] If IGAs are not valid then it is highly unlikely that any FFI would sign a FFI Agreement. [A lively and interesting discussion of FATCA IGAs is contained in Repeal FATCA.com, “FATCA Intergovernmental Agreement Exposed as Bad Deal for ‘Partner’ Countries”(accessed November 15, 2013). See also an interesting observation on why the U.S. is not engaged in information sharing with Latin American countries and why many nations avoid signing a tax treaty: “News Analysis: Will U.S. Hypocrisy on Information Sharing Continue?” by Lee A. Shepard, taxanalysts® Tax Notes Today, January 22, 2013.]

   Algirdas Semeta, the EU Commissioner on Taxation and Customs Union, in turn, stated the EU Member States have signed an intergovernmental agreement model 1A precisely because of the reciprocity commitment:

   My point here is very clear: When countries negotiate a model 1 agreement, for exchange of information between governments [under FATCA], then the reciprocity is not only promised but also ensured by the United States………….”…………..”

   So I hope that Canada is stalling.