UPDATE:
Please go to these articles about the lawsuit and comment:
cross posted from the ADCSovereignty WordPress blog
I left my root canal appointment this afternoon to a message announcing that Justice Martineau had rendered his decision. We did not win round 1. Notice that I did NOT say that the Government won round 1.
Here is the decision:
T-1736-14 decision sept-16-2015
Before, I comment specifically on the decision, I want to be clear on the following points:
- This decision marks the end of the beginning. It has always been clear that this litigation would NOT stop at the first level of trial.
- The “summary trial” on the Tax Treaty issues was a “carve out” of the main Charter issues.
- Obviously we continue on.
I am not surprised by the result – that is a “win” or a “loss”. What I am surprised at is the content of the decision (which I will get to in a moment).
But first some general thoughts/feelings/comments …
A. As you know, the CRA has announced that it will be sending the results of “FATCA Hunt” to the IRS on September 23, 2015.
This is hardly a surprise, given that Canada, has been and continues (under the Harper Government) to be a “World Leader” in FATCA implementation. Obviously this is a great disappointment. My guess is that it will be a long time before there are any specific results (meaning letters from the IRS) from this.
This is the beginning of a long struggle. Remember, this is a “marathon” and NOT a sprint. Concern is appropriate. Panic is not. Justice Martineau’s decision does reinforce the principle that the Treaty does NOT obligate the Canada Revenue Agency to assist the IRS in collecting tax on Canadian citizens. Do NOT do anything that is reckless and is a reaction to this decision (as opposed to a response). You will be subject to a good deal of “fear mongering” from various people (accountants, lawyers, bankers …). You should deal with this situation “one FATCA letter at a time”. Remember that a “FATCA Letter” is a letter that indicates that you are under “suspicion of being a U.S citizen”. It does not mean that you are a U.S. citizen.
The only difference between today and yesterday is that Justice Martineau has ruled against us – clearing the way for the next step.
In any case, Justice Martineau has “cleared the way” for the CRA to send your account information to the IRS. This is not good news.
B. It’s important to see this decision as an event that brings us one step closer to moving this issue through the courts.
For those of you who see the result as failure (and I don’t) I remind you that every failure brings us one step closer to our next success.
“Ladies and gentlemen, we go back to work and keep moving forward.”