THE U.S. FOREIGN ACCOUNT TAX COMPLIANCE ACT:
Bruce W. Bean,
Michigan State University – College of Law
Abbey Wright Farnsworth,
February 25, 2015
… two Canadians have filed a claim against the Canadian government asserting that the IGA entered into by the United States and Canada to implement FATCA violates several provisions of the Constitution of Canada,166 including Canada’s Charter of Rights and Freedoms, the Income Tax Act of Canada, and the Canada-U.S. Tax Treaty. The agreement requires Canadian FFIs to hand over information on qualifying accounts to Canadian tax authorities, who will in turn submit the information to the IRS.
… Additionally, there is concern that the agreement disregards the principle of maintaining sovereignty. The claimants and many other Americans living in Canada feel “entrapped in U.S. citizenship” and that their rights are being violated as they are “branded” potential tax evaders.
…The U.S. Government has taken a bold step with FATCA. The legislation is by far the most egregious example of extraterritorial overreach in history and has been harshly criticized by individuals and entities alike.
(as most of the world’s countries and *foreign financial institutions*
submissively roll over for the U.S.A.)