CRA Draft Guidance for Financial Institutions March 06 2014
Consultation Draft – for limited distribution
March 6, 2014
Guidance on Enhanced Financial Account Information Reporting – Part XVIII of the Income Tax Act
This guidance is released in draft to financial industry associations for comment in the context of a targeted consultation and is not for distribution to the broader public. Final guidance will be published on the website of the Canada Revenue Agency (CRA) subsequent to this consultation.
Legislative changes are required to implement the “Agreement between the Government of the United States of America and the Government of Canada to Improve International Tax Compliance through Enhanced Exchange of Information under the Convention between the United States of America and Canada with Respect to Taxes on Income and on Capital”, signed on February 5, 2014. On that day, the Department of Finance also published legislative proposals for comment and the guidance being offered is dependent on legislation being approved by Parliament in its proposed form. Industry associations are asked to provide feedback on this draft guidance by April 4, 2014 to CA-LPD.AC-DPL@cra-arc.gc.ca.
Again, those affected are out of the loop in discussion / consultation.
@Just Me, re;
If this was a ‘leak’ http://business.financialpost.com/2014/03/26/leaked-documents-show-canada-intended-departure-from-fatca-agreement-with-u-s/ , then how did the US tax lawyer quoted in the article (Roy Berg of Moodys) obtained a copy of the IGA legislation if it was only provided to the financial institutions and was not to be distributed to the public? He was quoted on this before yesterday. He espouses concern only for the protection of the financial industry. Is he acting for them? Or for another stakeholder? Why is he particularly concerned about that aspect, but not for the consequences for ordinary accountholders and individuals, the Charter, etc.? He knows of the consequences to US persons in Canada – having participated here occassionally in the past and some of his core clientele are or have been persons affected by CBT (and now of FATCA). Where are quotes from other lawyers in Canada?
Where is the FP’s author’s evidence of the “intent” behind the wording of the document?
“Leaked documents suggest that the federal government and the Canada Revenue Agency have deliberately undermined an intergovernmental agreement with the U.S. “
It would seem that Mr Berg’s intent is to create controversy over the government’s actions – but is anyone listening?
@bubblebustin, controversy, but for what/whose purpose? No mention of Charter rights, constitution, discrimination based on national origin, etc. No criticism of FATCA itself, or of its onerous mis-application to Canadians and rights to privacy and data integrity.
“……The guidance appears to confirm concerns the draft legislation is materially inconsistent with the IGA (and FATCA) on the issue of the status of trusts holding U.S.-based accounts.
IGA classifies these trusts as financial institutions that must meet FATCA requirements. The draft legislation—and CRA’s supposed interpretation of it—appears to suggest trusts are not financial institutions, and therefore aren’t required to report.This could mean trouble for trusts, says Roy Berg, director of U.S. Tax Law at Moodys Gartner Tax Law LLP in Calgary.
IRSCompliantForever, regarding the answer to your request of them, http://isaacbrocksociety.ca/2014/03/24/cra-bootleg-draft-guidance-for-financial-institutions-re-implementation-iga/comment-page-1/#comment-1299890
All the more reason for us to starve them of any of our personal assets – and never have any relationship EVER with the CBA Canadian Bankers Association or their kin – the IIAC.
This is not apparently a democracy, or even a good facade in this case – we provide the assets, they reap the rewards and arrange for their own maximum benefit without even a modicum of care for their accountholders and fellow Canadians.
We are being governed by the Banksters. An unelected cabal of predators.
Ask your MP why bankers and “tax lawyers” are free to access and read the draft legislation, and comment on it to the media as well as invited to give feedback to the Harper government http://business.financialpost.com/2014/03/10/canadas-draft-legislation-undermines-fatca-agreement-with-u-s/ http://business.financialpost.com/2014/03/26/leaked-documents-show-canada-intended-departure-from-fatca-agreement-with-u-s/ http://www.advisor.ca/tax/tax-news/cra-may-ignore-fatca-trust-rules-147928 , but Canadian taxpayers and accountholders and citizens and residents and voters are not.
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UPDATED: CRA may ignore FATCA trust rules