The Isaac Brock Society

FATCA Details Slowly Emerging
Gary Rogers, Vice President, Financial Policy, Credit Union Central of Canada

This highlights the need to keep pressure on Canadian government.

At an NDP event last night I met a fellow whose son has written this.

Do not take this as an endorsement as much as potentially useful info for those who wish to “not remain hidden.”

American citizens abroad have always had an obligation to file U.S. income tax returns. In recent years the IRS has stepped up enforcement of this obligation against U.S. citizens who live in Canada. For the first time, many American citizens in Canada who have little or no connection with the U.S., other than their citizenship, have become aware of their U.S. tax responsibilities. Filing dual tax returns can appear daunting, but need not be difficult. Most people’s tax situations are not complicated. But instead of completing their returns themselves, they pay financial professionals hundreds of dollars.

This book provides an alternative solution. This plain language guidebook helps American citizens in Canada complete and file their U.S. tax returns.

Tax Guide for “US Persons” in Canada

Dear Mr. xxx,

Thank you for contacting me about the ongoing situation regarding the potential for Canadian citizens born in the United States to be pursued for US income tax by the IRS.

As you know, the situation is complicated and the legal status of Canadians born in the US, the threat of IRS action, and the possibility of real punitive action is still unclear. As a Canadian citizen born in the US, I can assure you that I share your concerns and am dedicated to defending the equality rights of all affected citizens.

I am dedicated to taking action on your behalf. I have sent correspondence to the Prime Minister on the issue. The government has taken the position I urged and is forcefully advocating that the US stop targeting law-abiding Canadians in pursuit of those US citizens hiding in the Cayman Islands.

In addition, I recently met with the US Ambassador to Canada, David Jacobson. He is also very much absorbed by the controversy. His main message to me was that I should share with my constituents his wish that we “stay calm.” He indicated to me that he understands the issues and is working closely with officials at all levels of government in the US and Canada to find a pragmatic solution to this problem.

You are not alone in this situation. Many are seeking a solution to the problem. I will keep you posted as I work to find a sensible approach. In the meantime, please keep me posted through my constituency office of any changes in your situation.

Sincerely,

Elizabeth May, O.C., M.P.
Member of Parliament for Saanich-Gulf Islands
Leader of the Green Party of Canada

Dear ________:
Thank you for your correspondence concerning the United States Foreign Tax Compliance Act (FATCA) and the stance of the Liberal party on the issue. Please excuse my delay in responding to your email – my office has been working to respond to correspondence that had been misplaced during a recent staff transition.

Liberals were the first to raise the issue some years ago, pressuring the Conservative government to pursue amnesty against penalties as the IRS’s Foreign Bank Account Reporting requirements were not adequately communicated to Canadians who would be affected. A two-year amnesty period was negotiated in the face of overwhelming pressure from Liberals and concerned Canadians. Together, we sent a clear signal that Canadians expect their government to stand up for the honest and hardworking people who have been caught up by overly complex American tax rules. Canadians are not international tax cheats and it was past time for Stephen Harper to stand up for them.

During the two year amnesty period, we also made it clear that the government should address the concerns of Canadians regarding the US taxation of tax savings vehicles like RRSP and RESPs and regulations under FATCA that will force Canadian banks to share personal banking information with the IRS. These issues present immense sovereignty and privacy concerns for Canadians. The IRS does not have the jurisdiction or authority to persecute persons living and working in Canada. These people are already paying taxes – in Canada.

Over the amnesty period, the Harper government appears to have made no attempts to safeguard the interests of Canadians who will be victimized by the IRS if FACTA is allowed to proceed. As it stands, FACTA will compel not just dual citizens, but persons known to the US government residing in Canada to report to the IRS. These include dual-citizens, Canadians with American spouses, Canadians who have worked in the United States, and others. I am deeply disappointed in the government’s inaction on an issue that so brazenly threatens so many Canadians. I assure you that the Liberal Party will continue to pressure the Harper Government to address these concerns instead of caving into American pressure as has been its past practice.

Thank you once again for your correspondence; please do not hesitate to contact me if I can be of further assistance on this or any other issue.

Sincerely,

Hon. Dr. Hedy Fry, P.C., M.P.

Health Critic – Liberal Party of Canada

Vancouver Centre

The Government is also engaged in negotiations with the U.S. for an
agreement to enhance information exchange under the Canada-United States
Tax Treaty. The agreement would include information exchange
provisions in support of the United States Foreign Account Tax Compliance
Act provisions.
Under the agreement, information exchange would be improved on a
reciprocal basis to facilitate tax compliance in both countries. The agreement
would reflect a commitment by Canada and the United States to work with
other partners on adapting the terms of the agreement to a common model
for automatic exchange of information. page 156

Dear ______:,

Thanks for sending the Green Party announcement regarding the U.S. Foreign Account Tax Compliance Act (FATCA). I have asked our National Revenue Critic, now Murray Rankin, to fill me in on the latest.

The NDP is very concerned that the Harper government is currently participating in negotiations with the US over an Intergovernmental Agreement (IGA) for the implementation of FATCA in Canada. As you know, such an agreement would likely require Canada to enact laws and regulations that would require Canadian financial institutions to comply with FATCA. The NDP has serious concerns both about the lack of transparency and consultation during the negotiation process and the potential infringements on the rights of Canadians.

If implemented, the IGA would likely require Canadian banks, investment funds and other financial institutions to disclose annually to the U.S. Internal Revenue Service (IRS) accounts held by American Citizens, which includes dual citizens in Canada. Failure to disclose account information could result in a withholding tax applied to U.S. income earned by the institution or by account holder. The US’ stated policy goal of FACTA is to aggressively target American citizens who are improperly shielding assets in offshore accounts, with no consideration of the nature of existing Canada-US tax cooperation and the fact Canada is by no means a tax haven for Americans.

Essentially, FATCA would allow the United States to bypass the exchange of information between the IRS and the Canada Revenue Agency and instead get information directly from Canadian financial institutions. Apart from the extraterritorial enforcement dimensions to FACTA referenced above, there are widespread concerns that this exchange of information could potentially violate existing Canadian privacy laws.

New Democrats have repeatedly raised concerns over FATCA with the Conservatives and demanded that the government act on its responsibility to protect Canadian citizens from this improper and unreasonable intrusion of a foreign government.

New Democrats have also been fighting for the Conservatives to finally get serious when it comes to tax havens. But this does not mean rolling over and playing dead in the face of a misguided effort of the US to, in effect, treat Canada as a tax have. Just as we believe the Canadian Government has a responsibility to protect Canada’s tax base, we understand the United States’ desire to protect their own tax base — but this cannot come at the cost of the rights of individuals in our own country. We are demanding answers and transparency from the Conservatives on FATCA, and will not support an agreement that violates the privacy rights of individuals.

Again, thanks for contacting us on this. Please be assured that my New Democrat colleagues and I will continue to stand up both for fair taxation and for privacy rights, as well as for an approach to tax havens that is both aggressive and, unlike FACTA, reasonable.

All best,

Craig (Scott)
MP Toronto-Danforth

Just saw the play: The Power of Harriet T.

The scene where she crosses in Canada and said that the Fugitive Slave Act doesn’t apply up here gave me the creeps!

I just sent this to every MP:

What is your Party’s Position on FATCA?

The Green party has released its position on FATCA.

One million voting Canadian citizens and their families and friends are waiting to hear your party’s position.

http://www.greenparty.ca/statement/2013-01-28/backgrounder-canada-and-fatca

Sincerely,

members-federal-latest (2)

Considering the strong Green Party Position on FATCA, time to go after the other parties!

http://www.greenparty.ca/statement/2013-01-28/backgrounder-canada-and-fatca

I would like to again thank Peter et al. for setting up this people’s social movement! I think that after one year, the task before us in Canada is clear:
1. Continue to lobby all the political parties as to these issues, reminding them that we are 1,000,000 strong in Canada and WE VOTE! AND WE ARE CANADIANS!
2, Continue to support the Canadian Civil Liberties Association. They are a tremendously influential organization that garners support from a wide swath of Canadian life.
3. And talk to all others you encounter, directing them to this site.