Author Archives: calgary411

For those of us trying to make sense of FATCA and GATCA — the OECD CRS, this is a good read …

OECD CRS (Common Reporting Standard)

FURTHER GUIDANCE‌‌

Bloomberg BNA – September 26, 2016 “Finish Line Unclear for Some FATCA Pacts as Banks Worry”

By Alison Bennett

Sept. 23 — A bumpy path may lie ahead for crucial agreements to ease the process for foreign banks to report their U.S.-owned accounts under a controversial law—even as IRS pressure grows for countries to get their pacts in force quickly.

Some countries face legal challenges to agreements under the Foreign Account Tax Compliance Act, while others may not be moving quickly. The lack of agreements in force is raising big concerns among global banks with operations in some jurisdictions that have fully functioning pacts and some that don’t.

…

The alternative—directly reporting individual accounts to the U.S. or potentially facing a 30 percent withholding tax—is a major concern for cross-border financial institutions as difficulties continue in countries that haven’t managed to get an IGA in legal force. According to Sept. 23 Treasury Department data, 113 countries have agreements, but 49 still need to reach the finish line.

…

Tax attorneys said the Organization for Economic Cooperation and Development’s common reporting standard may be draining energy and legislative resources in some jurisdictions. The CRS is a separate multinational system designed to allow financial information exchange across many borders.

More than 100 countries have signed on for that exchange. The U.S. can’t fully adopt the CRS because of legal challenges. Some of those 100 countries have implemented CRS statutes before finalizing FATCA agreements.

…

Even if banks want to register for direct reporting, in many cases they still face the legal prohibitions that led to the creation of IGAs, she said. In another challenge, financial institutions that have already made huge efforts to document all their U.S. accounts under their agreements would have to redocument them to comply with FATCA, said Ferris, now a financial services principal with Ernst & Young LLP.

etc.

Related:

September 27, 2016 – Newsmax Finance “Treasury: IRS Spent $15 Million on Flawed FATCA System Rollout Read more: Treasury: IRS Spent $15 Million on Flawed FATCA System Rollout “

Bubblebustin says:

Thank you Calgary411 for posting this for me.
 

As some of you already know, I heard back from Canada’s Revenue Minister, the Honourable Diane Lebouthillier, as to whether my Canadian banking information had been sent to the CRA in last year’s FATCA IGA information reporting.

As it turned out, three information slips were reported from two different investment firms where I had signed a W-9 at some point. None of my other bank accounts where I had not signed a W-9 were reported although one of my bank’s managers knew I was a USP. She retired before it came time to report that account. It’s good to know that the CRA isn’t being extra helpful to the IRS by providing information slips on bank accounts that it is aware of through Canadian tax reporting – yet.

The letter contains a contact number for the Director with the Canadian Competent Authority Services Division others may find useful in trying to get straight answers when having to deal with FATCA.

-Bubblebustin

CRA letter

Thanks very much, Bubblebustin,  for sharing with other Canadian Brockers your CRA Letter (linked above)!

Thank you, Keith Redmond, for sharing the trail of your correspondence with US DOS (Michele Thoren Bond, Assistant Secretary for Consular Affairs, American Citizen Services, US Department of State and Michelle and Michelle Bernier-Toth, whose DOS position is not stated, but it is implied she is an assistant to Jonathan Finer). We appreciate your asking to keep the conversation going to get through the obfuscation from DOS.

From Michelle Bernier-Toth:

Finally, with regard to your colleague’s question about “dominant and effective nationality,” this is a legal concept sometimes used by states and international dispute resolution forums to determine whether certain individuals or states are able to bring legal claims based on violations of international law. Dominant and effective nationality is an extremely fact-specific inquiry, and we do not employ a general definition of the concept in the international claims context in which it arises.

Keith Redmond’s response:

Good Morning –

Though I do not agree with the way in which the US government (and in this case the US State Department) is handling (i.e. not handling) the situation which is adversely affecting the live of citizens of other countries (e.g. French citizens) who have the undesirable US citizenship because of their parent’s unintentional error in having their child on US soil, I sincerely appreciate your responses and would like to keep the dialogue open as I am working with those living the “nightmare reality” on the ground at the hands of the US government. It is important to note that these individuals cannot live normal lives DIRECTLY as a result of the ACTIONS of the US government and in my opinion, as an American, it is shameful what our country is doing to this population and quite frankly does not care.

It is important to note that the trend is for other countries (e.g. France, Israel, Canada, The Netherlands, Italy, etc.) to realise what is being done and to push back on the US government through the appropriate channels (e.g. diplomatic). This problem is not going away and is getting worse until the US government acknowledges the serious hardships it has created globally.

As an American who is focused on these injustices, the fight shall continue for the civil rights of these populations.

Respectfully yours,
Keith REDMOND

(Thanks to JC and badger suggesting better visibility in its own post here at IsaacBrockSociety.ca).

Cross-posting from Maple Sandbox and its original post at http://www.citizenshiptaxation.ca:

“You Pay For What You Don’t Get” Submission to Global Forum

Duke of Devon says,

Mr. Morneau’s letter deserves its’ own post so it won’t get lost. He seems to get it. It will be interesting to keep on his case about the lack of reciprocity. He is the first Lib. to confirm they won’t help collect anything the IRS claims against a Canadian and I think his distinction that CRA-IRS transfer of information cannot legally be used by the IRS to impose FBAR fines is a new commitment. Not so sure the IRS would respect the distinction.

 

Here is the first reply that any of have gotten from the Finance Minister.  Thanks for sharing it, Cheryl.

April 26, 2016 Reply from The Honourable Bill Morneau, P.C., M.P.

VIDEO: April 14, 2016 — Minister of National Revenue Diane Lebouthillier at Standing Committee on Access to Information, Privacy & Ethics re Transfer of Information to the United States IRS

MINUTES of Proceedings: Standing Committee on Access to Information, Privacy and Ethics (ETHI) 42nd Parliament, 1st Session Meeting No. 8, Thursday, April 14, 2016, 8:45 a.m. to 10:49 a.m.

TRANSCRIPT: House of Commons, Canada – Standing Committee ETHI 8 Meeting on Access to Information, Privacy and Ethics, Thursday, April 14, 2016

and

Appearance before the Standing Committee on Access to Information, Privacy and Ethics on the Transfer of Information to the United States Internal Revenue Service (IRS) April 14, 2016 Opening Statement by Daniel Therrien, Privacy Commissioner of Canada

There has been comment on the Revenue Minister’s qualifications for her post.  Here, as well,  is some discussion (brought forward by EmBee) on Daniel Therrien’s qualifications for Privacy Commissioner:
From *The Privacy Advisor* – May 29, 2014 *Harper Pick for Privacy Commissioner “May Not Be the Best Fit*

News that the Harper government has nominated a new federal privacy commissioner is sending shock waves through the Canadian privacy community. But the buzz isn’t over the fact that former Commissioner Jennifer Stoddart’s replacement has been found; rather, it’s over the fact that no one in the privacy world has ever heard of the newly nominated-for-appointment Daniel Therrien—and what they have heard doesn’t sound good if the end-goal is the protection of Canadians’ privacy rights.

What is known about Therrien is that he’s been a lawyer at the Department of Justice (DOJ) for more than 20 years. His current title is assistant deputy attorney general, public safety, defence and immigration portfolio. And in the midst of an increasing push by the government for surveillance powers and law enforcement access to Canadians’ data—a la bills like thehighly controversial C-13 and now-dead-in-the-water C-30—a lawyer who’s worked on helping the DOJ achieve those aims isn’t exactly who privacy advocates had in mind as the chief defender of privacy rights.

In fact, NDP Leader Thomas Mulclair has outright told the Harper government that Therrien has “neither the neutrality nor the necessary detachment to hold this position,” CBCreports, and has asked Prime Minister Stephen Harper to reconsider the nomination, which, by mandate of the Privacy Act, the House of Commons and the Senate must approve.

Cross-posting while listening to viewing / listening to: http://parlvu.parl.gc.ca/XRender/en/PowerBrowser/PowerBrowserV2/20160414/-1/24805?useragent=Mozilla/5.0%20(Windows%20NT%2010.0;%20WOW64)%20AppleWebKit/537.36%20(KHTML,%20like%20Gecko)%20Chrome/49.0.2623.112%20Safari/537.36

http://maplesandbox.ca/2016/baby-elles-fatca-letter/

Dear Prime Minister Trudeau and President Obama:

Why do you think I am a tax cheat?

I am eight months old. I live with my Mommy and Daddy in Canada.

I can’t walk or talk yet. So my Nana’s friend Lynne is helping me write to you.

At Christmas time Mommy and Daddy opened a small savings account for me in Canada. When I was six months old in February, TD Bank sent me a letter and other stuff.

I can’t read. So Nana read it for me.

I don’t know what the gibberish in the letter means. Nana says it’s crazy. I believe my Nana.

The letter says TD will squeal on me to Canada Revenue Agency (CRA). Then the CRA will tattle on me to U.S. Internal Revenue Service (IRS) for FATCA. What’s a FATCA?

I don’t know what a citizen is. But I’m a double one.

I was born in the United States. My Mommy and Daddy are Canadian citizens. The Canadian government sent me a letter saying I am too. But I have a blue book that says I’m a U.S. citizen too.

TD says because they know I was born in the United States, I have to complete, sign and mail forms to them.

How can I? I can’t even print yet.

President Obama: Why do you want my information? What will you do with it?

Prime Minster Trudeau: Why are you giving your friend Mr. Obama information about me? Why are you helping him? Why aren’t you helping me?

Please help me. I can’t afford an accountant or lawyer from my allowance.

Bye Bye.

Baby Elle
Vancouver Canada

referencing also today’s: http://ipolitics.ca/2016/04/14/baby-girl-drawn-into-cra-irs-information-sharing-controversy/

AND

http://ipolitics.ca/2016/04/14/so-now-the-cra-is-going-after-infants/

…to be continued

Thank you, MP Peter Julian for your responsible question in Question Period.

Video version with English simultaneous translation:

Alternate video version with floor audio (spoken English and French without translation):

Identified by JC: http://isaacbrocksociety.ca/media-and-blog-articles-open-for-comments-part-3-of-3/comment-page-41/#comment-7345612. Brock commenters are there; comments are open (closed on previous of Elizabeth Thompson’s posts on this).

Brison, Garneau endorse deal to share Canadian banking records with IRS

 

Two Liberal cabinet ministers who had criticized a controversial agreement to provide Canadian banking records to the U.S. Internal Revenue Service now say they support the deal.

Speaking on the way into a cabinet meeting Tuesday, Treasury Board President Scott Brison and Transport Minister Marc Garneau rallied behind the position adopted last week by Revenue Minister Diane Lebouthillier, supporting the deal struck under the Harper government that saw 155,000 Canadian banking records shared with the IRS last September.

Brison, who sharply criticized the deal and tried to have it amended when he was Liberal Finance Critic, said the Liberal government has to work with the agreement.

“The previous government negotiated with the Americans on this and we have certainly inherited the situation we have,” Brison told iPolitics.

“At the time, the previous government could have negotiated more effectively at that time. The question is where are we now and it is a difficult one necessarily to deal with retroactively.”

In 2014, Garneau accused the IRS of trying to get the Canada Revenue Agency to “do its dirty work” through the deal – a deal he now supports.

“I take the position that our government is taking now and has been expressed by the minister of revenue,” he said Tuesday.

The controversy centres on an agreement worked out between Canada and the U.S. in the wake of the U.S.’s decision to adopt the Foreign Account Tax Compliance Act (FATCA), which pressured financial institutions around the world to reveal information about bank accounts in a bid to crack down on tax evasion by U.S. taxpayers with foreign accounts.

…

A second transfer of records to the IRS is scheduled for September 30, 2016.

While prominent Liberals, including Prime Minister Justin Trudeau, criticized the information sharing deal before the election, last week, Lebouthillier defended it.

“Minister Lebouthillier wants to reassure Canadians that all exchanges of information are subject to strict confidentiality rules,” reads the e-mail sent by Lebouthillier’s office.

“The CRA ensures that tax cooperation with its foreign partners is done in a manner fully consistent with privacy rights in Canada. It is important to note that Canada and the United States have a long history of exchanging tax information in a fair and responsible manner, going back to 1942.”

…

etc., etc.

More later…

Thanks for continuing to shine the light for ALL Canadians to realize, Elizabeth Thompson!  We need Canadian MSM to do the same.

Revenue minister could have to face committee on record sharing with IRS

…
NDP Revenue Critic Pierre-Luc Dusseault is asking Parliament’s Access to Information, Privacy and Ethics committee to hold hearings on the transfer and its impact for the privacy of Canadians. Among the people he wants the committee to call to testify are Lebouthillier and Canada’s Privacy Commissioner Daniel Therrien.
…
A second transfer of records to the IRS is scheduled for September 30, 2016.

Wednesday, Lebouthillier defended the transfer of Canadian banking records to the IRS.

“Minister Lebouthillier wants to reassure Canadians that all exchanges of information are subject to strict confidentiality rules,” reads the e-mail sent by Lebouthillier’s office.

“The CRA ensures that tax cooperation with its foreign partners is done in a manner fully consistent with privacy rights in Canada. It is important to note that Canada and the United States have a long history of exchanging tax information in a fair and responsible manner, going back to 1942.”

Some of us will disagree — see the first comment from John Richardson.