cross posted from the ADCSovereignty Blog
FATCA Update: Treasury Relaxes September 30 Deadline for Model 1 IGA Jurisdictions to Exchange Ta… http://t.co/wocIyAGoPr via @BlankRomeLLP
— Citizenship Lawyer (@ExpatriationLaw) September 19, 2015
Well, it’s been quite a week. At approximately 4:45 p.m. today the IRS issued a notice confirming that the FATCA implementation date will be extended to September 30, 2016. As you know Canada has a Model 1 IGA. Assuming the correctness of the post in the above tweet:
Model 1 IGA Jurisdictions for Which the Obligation to Exchange Is In Effect
For those Model 1 IGA jurisdictions where the obligation to exchange is in effect now, Notice 2015-66 provides that FFIs in that country will be treated as FATCA compliant, and not subject to withholding, so long as the partner jurisdiction notifies the U.S. before September 30 that it requires more time, and “provides assurance that the jurisdiction is making good faith efforts to exchange the information as soon as possible.” Notice 2015-66 does not, however, change the deadline for FFIs to report information to their local tax authority, which remains governed by law of that country.
We have instructed our legal counsel to notify the Government of Canada (and they have) of this development and request that the Government of Canada NOT disclose your banking information to the IRS.
It’s been quite a week. We will keep you posted.
@Norman Diamond, that video was a riot. I have no idea how they have any capacity to implement and execute FATCA. Imagine someone is notified they are in trouble and they can’t even get through to anyone at the IRS for explanation or assistance. A “courtesy disconnect”, never heard hanging up on someone called that one before. Wow.
@EllenDownunder FATCA could be a real boon for the US privatised prison system. They could replace all the cannabis smokers with captured expats. I wouldn’t be surprised if they are already in talks and building the first expat holding facilities. Hopefully they will keep us all housed in the same facilities, you seem a friendly bunch and less likely to shank me 😛
Boggles the mind that governments everywhere are just ready to turn around and bend over to accept US demands and now the US isn’t ready. Just goes to show that without the IGA s they probably wouldn’t dare implement the 30% withholding either.
We have been focusing on the cost of Fatca to the IRS. What do you think the cost of imposing the 30% with holding bluff might be? If the IRS had to somehow with hold ALL banks in the world, that would be the end of the IRS. The countries that signed forced agreements are fools period! This whole thing should have caused world outrage and the removal of the USA from their lives end of story. Their bluffs are now ruling the world as nobody seems to consider all of the facts of implementation.
@NativeCanadian, the four of the “five eyes” could have called the bluff and said this is what we get from the special relationship?
It was irresponsible for any nation to throw its own citizens under the bus!!
It will be interesting to see if CRA hands the information over early even though they could hold on to it now.
Personally, I think the CRA will hand the information over.
Assuming they hand it over, it will be an excellent election issue to bring up!!
Given this opportunity in light of a Constititional Court Challenge, the Govt could have used it as an opportunity to soberly hold the data back because that is what good governance is.
Well, it looks like we got our “injunction” after all! “Thank you” to the team for notifying CRA that the deadline has been extended a full year. Hopefully the other governments of the world have got the message in time.
What a ridiculous and tragic fiasco this all is! Is the IRS just going to keep stringing us along, year after year after year? Indeed, the world is run by fools, cow-towing to the US every time they see a “gun” when it’s really nothing but a plastic pistol and an empty threat.
@ADCS, is our counsel going to get notified of the decision of the government regarding sending the data?
When will we know their decision?
@ADCS / All – –
Has anyone heard anything in regard to the Liechtenstein court case (reported mid June 2015)?
Has ANYTHING been reported about the oral presentations (or ruling) in the Bopp/RO federal court case in Ohio?
Anxious to hear if our legal team will press for/get a “STAY” so that the CRA will not send all this personal data to the IRS…….
No…. as George says, we DO NOT HAVE AN INJUNCTION.
The Government of Canada has to ask for the delay.
Everyone please use your social media skills to convince the Government to ask for a delay.
We will have a press release up very soon on our ADCS blog that you can also use. You focus has to be to ask for a delay, as now permitted by IRS, in the handover.