Canada DEC 2015 Contact the New Government re FATCA!

3 thoughts on “Canada DEC 2015 Contact the New Government re FATCA!”

1. My wife is an ‘accidental American’ born in the US to a Canadian mother. Moved back to Canada
   at 28 months old. Lived, schooled and only worked in Canada. Now 63 and retired. Naturalized
   as a Canadian Citizen at 24 years old in 1976 thus relinquishing her US citizenship based on the laws at that time.
   We are confused by so much misinformation written on the subject of FATCA. Accountants and lawyers all seemed confused in trying to explain my wife’s situation with regards to FATCA. Our financial institution has warned us that within the next six months they will be exposing my wife
   to the IRS because their declaration form will say ‘born in the USA’ My wife is being urged to apply for a CLN but will this mean she has to file US income tax forms? Can anyone advise us
   with some certainty on what to do. I personally would like to tell our FI that ticking the FATCA box
   violates my wife’s Charter of Rights and Freedoms. I was informed that if we do not want to comply then our FI will close our account.

2. @ John
   There’s helpful information here …
   http://isaacbrocksociety.ca/relinquishing-acts-performed-prior-to-2004/
   If your wife did nothing after 1976 to re-connect herself to the USA (apply for or use a US passort, file US taxes, etc.) then she should be able to get a post-dated CLN (cost $2350) to officially certify that she is not a US citizen and has not been since 1976. She would have to assert that she gave up US citizenship by intent and according to the law of the time. She should be able to self-certify this to the FI too but they can be awfully dense (and confused) when it comes to FATCA. She might also want to look over the DS-4079 form which is given to people desiring a CLN by relinquishment. To make sure your comment is noticed try reposting it on this thread which is more active.
   http://isaacbrocksociety.ca/renunciation/

3. John. Please move your question as mentioned by EmBee and read the post she quoted for those who relinquished before 2004 as well as this one
   http://isaacbrocksociety.ca/2011/12/16/did-you-relinquish-before-february-6-1995-then-you-did-not-have-to-inform-the-state-department/

   It is important to slow down and take this one step at a time. You will get all the information you need- ask any question you have and don’t be stampeded.
   Your wife relinquished her US person-hood in 1976. This is crucial. She has no obligation to file US tax returns at any time because she has not been a US citizen since then.
   Any adviser who tells you otherwise is simply wrong.Beware. Some of them are in it for the money.
   To our amazement, most underlings at Canadian financial institutions don’t know the law either.
   A CLN is supposed to not be required. Your FI is supposed to accept a ‘self certification’ by your wife that she is not a US citizen along with a ‘reasonable explanation’ as to why she doesn’t have a CLN.
   There are a number of reasonable explanations. The best is that in 1976 by becoming Canadian, your wife automatically relinquished US citizenship and at that time there was no need to inform the State dep’t or to obtain a CLN . Secondary reasons that need not be mentioned unless pressed are that the wait list for a CLN is 6-9 months. I.E. if your FI doesn’t accept the first one, she could tell them she will apply for a CLN but the delay in getting one will be over a year.
   These are the Canadian Government’s official guidelines which your FI should be following.
   http://www.cra-arc.gc.ca/tx/nnrsdnts/nhncdrprtng/gdnc-eng.html

   Guidance on enhanced financial accounts information reporting Part XVIII of the Income Tax Act
   See Chapter 8 Section 8:27

   8.27 When the indicium found is an unambiguous indication of a U.S. place of birth, the account must be reported unless the financial institution obtains or currently maintains a record of all of the following:
   a self-certification showing that the account holder is neither a U.S. resident nor a U.S. citizen;
   evidence of the account holder’s citizenship in a country other than the U.S. (for example, a passport or other government-issued identification); and
   a copy of the account holder’s Certificate of Loss of Nationality of the United States (a “CLN”) or a reasonable explanation of why:
   the account holder does not have such a certificate despite having relinquished U.S. citizenship; or
   the account holder did not obtain U.S. citizenship at birth.

   Take this to her FI .If necessary threaten holy hell. They are breaking the law. A Brocker with the handle Silver Birch was successful with this approach.

   There is much more to discuss. How did your FI decide your wife was American? Would she be willing or able to change FIs? Would she be willing to give an account of this to Stephen Kish?
   Know that you are among friends, that you will get the help you need and that your wife will not need to file US tax returns or pay them a nickel. Please keep us informed.

Comments are closed.