FATCA and Canada
Note: For list of Media and Blog Articles (not including those of the Isaac Brock Society) regarding the Canadian IGA FATCA lawsuit (Hillis and Deegan v. Attorney General of Canada), go to this page. (Isaac Brock Society posts and threads on the lawsuit are contained in the FATCA and Canada list below.)
Posts and Threads on the Isaac Brock Society Website
July 2019
June 2019
07: Lawsuits involving FATCA and aspects related to U.S. citizenship-based taxation
May 2019
18: More Recent Anti-U.S. FATCA/CBT Activity in France, Netherlands, and Canada by Government Officials
January 2019
29: Ottawa Brock Lunch – Saturday 9 February (4)
23: THE 2019 JANUARY 28-FEBRUARY 1 ADCS CANADIAN FATCA IGA TRIAL IN FEDERAL COURT HAS ENDED — “A Treaty does NOT make a CHARTER-FREE zone” — You can expect a costly APPEAL of the Federal Court decision (in June?) no matter who wins (742)
11: Supporters of @ADCSovereignty #FATCA lawsuit might be interested in @RunnymedeSoc Law and Freedom Conference – Jan. 12/19
December 2018
17: Read the Submissions to the Canadian Federal Court for the January 28 ADCS Trial
November 2018
October 2018
22: Brock project: How would the absence of the “savings clause” in the Canada US tax treaty change the tax treatment of “US citizens” in Canada? (81)
05: CANADIAN FATCA IGA LAWSUIT UPDATE: October 3, 2018 Plaintiffs’ Memorandum of Argument Has Been Submitted to Canada’s Federal Court
September 2018
27: Video from Toronto Meeting with Solomon Yue August 16, 2018
August 2018
19: Speculate on the percentage (85%? 5%?) of Canadian citizen-residents, deemed by U.S. to be U.S. citizens — who do not have, accept, or want, any meaningful relationship with the U.S.? (93)
18: Former Hamilton school superintendent pleads guilty to forging documents to get his children U.S. citizenship (44)
15: Brock project: Comparing the comments on the French version of the @LizT1 @USTransitionTax article to the comments on the English version
14: More about the @USTransitionTax issue from @LizT1: Finance Minister Morneau responds (sort of)
13: Another article by @LizT1 about the @USTransitionTax – Just when you thought it couldn’t get worse!
10: Reminder – Solomon Yue Visits Toronto
July 2018
27: Two Programs with Solomon Yue in Toronto August 12 & August 16, 2018
01: U.S., U.K., Canada, Australia and Netherlands form international tax enforcement group
May 2018
April 2018
28: Be on the Lookout! Bubblebustin to be on CBC The National- on the #TransitionTax
11: Canadian FATCA IGA Litigation Update: Court has fixed Monday January 28, 2019 as trial
March 2018
30: If you want to be a Shareholder in our Canadian Business then you must Renounce U.S. Citizenship
22: March 22, 2018 Canadian FATCA IGA litigation in Federal Court update: New timetable
02: Canadians’ Confidential Tax Info to be Shared with Police in Other Countries
January 2018
08: January 8, 2018 Canadian FATCA IGA Legislation Litigation Update
December 2017
07: December 7, 2017 Canadian FATCA IGA Legislation Litigation Update
October 2017
24: October 24, 2017 Canadian and United States (RO) FATCA IGA/FATCA Litigation Update
22: Ottawa Brock Lunch – Saturday 18 November
06: Dual Filer Status- How to Live & Invest in Canada as a US dual filer -Courtenay BC Oct 12
01: October 1 2017 Canadian FATCA IGA Legislation Litigation Update
September 2017
12: Canada’s tax on being American! Why not!
August 2017
21: Dewees 3: Lessons about the “Oh My God Moment” and dealing with the problems of U.S. citizenship
15: Dewees 2: Why did he participate in the 2009 #OVDP Horror Show?
July 2017
10: Khadr apology and settlement about violation of Charter rights, Trudeau says
June 2017
18: #FATCA and the Canadian Charter of Rights and Freedoms
02: Seeking a Few Additional Witnesses Willing to File Affidavit for Canadian FATCA IGA Lawsuit
May 2017
22: May 23, 2017- Vancouver -Solving U.S.Citizenship Problems
13: May 13, 2017 Canadian Federal Court FATCA IGA lawsuit update: Motion for Summary Trial now submitted
March 2017
23: Information Session – Solving U.S. Citizenship Problems with John Richardson
February 2017
12: The Beyond the Border Action Plan & the U.S. National Defense Act-A Disaster Waiting to Happen?
11: CDN with @dualcitizenship spends $3000 per year to make retirement planning more difficult
02: FEBRUARY 2 2017 UPDATE ON CANADIAN FATCA IGA LAWSUIT
January 2017
30: Dear PM Trudeau: Renegotiate FATCA IGA Now (reposted from MapleSandbox) (19)
25: Reminder: Solving US Citizenship Problems Toronto Sat. Jan 28
17: Seeking Canadian Witness for Canadian FATCA IGA Lawsuit Who Has Renounced and Paid U.S. “Exit Tax”
December 2016
15: DECEMBER 15, 2016 UPDATE ON CANADIAN FATCA IGA LAWSUIT
November 2016
05: November 2016 Status Report on ADCS-ADSC Canadian FATCA Lawsuit
October 2016
30: Reminder: Solving US Citizenship Problems Toronto Sat Nov 5, 2016
24: Ottawa Brock Lunch – Saturday 12 November
September 2016
30: Credit Union Update: YNCU Grows to $1.5B CAD in Assets
16: Vancouver Sun features our own Trish Moon
August 2016
13: Message from Plaintiff Ginny (Canadian FATCA-IGA Lawsuit)
July 2016
13: Is the State Department Shutting Down Expatriation Appointments in Canada?
11: Allison’s “Tina” Presentation and What do you think this guy means?
06: Ottawa Brock Lunch – Saturday 23 July
01: Canada pushes back against one foreign country’s jus sanguinis claims
01: Is JT Wearing His FATCA Flip Flops For Canada Day?
01: Barack Obama’s Address to the House of Commons, June 29, 2016: an Alternative Look
June 2016
29: What Canadian Witness Volunteers For Our FATCA IGA Lawsuit Tell Me
22: Canadian FATCA IGA Litigation Update: We have a new (third) plaintiff and still seek more Witnesses
20: Reminder: Solving U.S. Citizenship Problems – Toronto, Saturday, June 25, 2016
15: CANADIAN FATCA IGA LITIGATION: We are still seeking additional CANADIAN citizen witnesses
08: WHILE PARLIAMENT SLEEPS: TAX TREATY PRACTICE IN CANADA
08: JUNE 3, 2016 Canadian FATCA IGA Litigation Status Report Submitted to Case Management Judge
May 2016
13: September 30, 2016-Another Blow to Personal Privacy and Freedom of Movement
11: Creepy perverted ex named Sam stalks Americans who moved to Canada for love
04: How will YOU respond to the 2016 Canadian Census?
April 2016
27: FATCA Response From Deputy Finance Critic Phil McColeman of Brantford-Brant
26: Reply from the Finance Minister, the Honourable Bill Morneau…
15: PMJT Enjoys Yoga – Makes Sense That He Enjoys Flip-Flops, Too…
15: Dear Valued Customer, Indicators Found: Your Place of Birth is the United States
Baby Elle’s FATCA Letter (Lynne Swanson’s good work)…
01: What is REALLY in the U.S.-Canada Tax Treaty
March 2016
30: A Paper Detailing FATCA’s Costs to Canada
30: March 30, 2016: Toronto Star Publishes Today a Mr. Justin Trudeau Flip-Flop Article
29: March 29, 2016: Yet Another Article Comparing Pre- vs. Post-election Comments of Mr. Justin Trudeau
17: From Elizabeth Thompson a new post at iPolitics — Round Three : March 17, 2016 (evening edition)
16: John Richardson being interviewed by CBC’s The Exchange tonight
08: AICPA recommends that Treasury implement measures to reduce tax and reporting burdens associated with various cross-border deferred and tax-exempt savings accounts
February 2016
17: New instructions to book Canada appointments to relinquish or renounce US citizenship
11: Listen up, Canadian Liberal Government — *The Truth About FATCA* — Jim Jatras
10: John Richardson on CTV “Power Play” with Don Martin today
04: Getting Canadian Charter of Rights and Freedoms Right
02: NDP Revenue Critic, Pierre-Luc Dusseault, Writes to Minister of Revenue
January 2016
31: Discussion at @Canada2020 on Canada Foreign Policy of interest in @ADCSovereignty #FATCA lawsuit
28: How the government will argue Charter S. 1 against the @ADCSovereignty Charter lawsuit
22: Bravo MP Pierre-Luc Dusseault for keeping the pressure up on FATCA!
19: Tune Into CBC “All in a Day” at 4:45 EST pm today – John Richardson interview (92)
19: Uncle Sam Wants…Who? at UBC Law This Week – Allison Christians, McGill University, Faculty of Law
December 2015
15: Fatca Forum Exactly 3 Years Ago Today! How Far We Have Come!!
14: We need Witnesses for Canadian Charter Trial willing to file affidavits and go public
05: Letter to my bank manager: What do Brockers think?
November 2015
20: Allison Christian Interview – Lessening the hardship inflicted by FATCA
10: The Younger Trudeau tells off Prime Minister Harper in debate: Bravo!
09: Solving U.S. Citizenship Poblems – University of Guelph, Monday, November 16, 2015
09: Our Sociopathic Society V: Government invasion of the castle
06: Our Sociopathic Society IV: King Justin’s first sociopathic act
04: Information Session – Toronto, Sunday, November 8, 2015 – POSTPONED
October 2015
Posts and Threads on the last Canadian election, go to Canada Election 19 Oct 2015 – Resources
30: Elizabeth May: Fixing What Harper Broke: a to-do list for the incoming government
24: Liberal Party Position on U.S. Foreign Account Tax Compliance Act (FATCA)
18: October 19 is Election Day in Canada
15: Louise Arbour, “My children and I are caught in a useless bureaucratic nightmare”
13: Call for Letters to Our New Prime Minister
13: Letter of Nathan Cullen, NDP Critic for Finance, to Ministers of Finance and Revenue
11: Canadian expats out of country more than 5 years can still vote
03: Submit a tip to the Canadian Press on an issue of national interest?
02: Last chance for the NDP to garner our votes…
September 2015
30: Plaintiffs Ginny and Gwen denied injunction: WE NOW BEGIN ROUND TWO OF A LONG FIGHT
30: U.S. IRS and Mexican SAT begin sharing info on bank accounts
24: If we don’t ask (the Conservative government), we don’t get. Today, one Brocker got! (
23: Important: NDP has stepped up to the plate with another letter to the Minister (updated)…
22: Until the government acknowledges it’s seen the light, please continue to make them feel the heat
16: Part I: Justice Martineau provides @ADCSovereignty the only thing worse than a root canal
16: Back to the drawing board…
09: Green Party Platform includes their pledge to repeal FATCA in Canada
August 2015
26: Which will come first: A decision in the FATCA legal challenge or the first exchange of info?
Reminder: Toronto Info Session on Solving US Citizenship Problems-Aug 30, 2015
25: An Interesting Analysis of an Analysis: John Richardson on Roy Berg on the Summary Trial
24: Our Tee-Shirts are Available! Great Work Native Canadian!
18: With such an amazing group, it’s simply NOT possible to NOT succeed! Thanks from @ADCSovereignty
13: Canadian FATCA Trial — *Tweet by Tweet* account of proceedings for the U.S. Library of Congress
10: More US Hypocrisy re Canadian RDSP (cont.) / Comments requested to be received September 15, 2015
05: UPDATES — From @ADCSovereignty #FATCA lawsuit – thoughts on day 1, 2 and post-trial dates(and more)…
July 2015
29: Reminder – Solving US Citizenship Problems – Vancouver
18: “The Shot Heard Round The World” Live from ThatChannel.com
11: Tricia Moon, your comment at the *Jack Townsend blog* is heart-felt and brilliant – THANK YOU!
08: Canadian Federal Election: It’s Time to Throw the People Who Betrayed Us Out of Office
07: Message in a bottle 2: Democracy, the Appointment of Judges and the Canadian Charter of Rights
June 2015
24: Help Me Keep My April 5 Promise Revisited-We Will Never Forget the IGA Betrayal by the CONs
12: It’s official – second class citizenship goes into effect
May 2015
08: Should proof of non-U.S. citizenship be an absolute condition for accepting public office in Canada?
04: U.S. citizenship taxation burdens Canada’s sovereignty by imposing U.S. taxes on Canadian residents
01: Congratulations to ALL Donors to the #FATCA Canada lawsuit – Looking forward to August 4/15
April 2015
22: 2015 Canadian Budget Introduces the “Common Reporting Standard”
16: We Delivered! Monumental Submission to Senate Finance Committee! #Fight CBT (42)
15: Reminder: “2015: Solving U.S. Citizenship Problems: Have You Received a FATCA Letter?” London ON
07: Video Portion of Senate Finance Committee Submission Ready!
06: WANTED – Ginny and Gwenny – Runaway Tax Slaves!
01: Renouncing US citizenship? How the S. 877A “Exit Tax” may apply to your Canadian assets – 14 Parts
March 2015
20: Reminder: “Have You Received a #FATCA Letter?” Hamilton ON March 26
12: Harper government accepts national origin discrimination for US Persons, but not for meat
07: Financial Post hits a new low in FATCA reporting
04: Terminating a Green Card (Abandonment of Lawful Permanent Resident Status)
February 2015
25: Barrie McKenna reports on Canadian Direct Financial’s milestone FATCA announcement
17: ADCS-ADSC LITIGATION UPDATES: Key Actions, Milestones and Timeline Estimates
13: Volunteers required for research project on Canada – USA dual citizens (current and former)
06: Congratulations to @ADCSovereignty lawyer, Joe Arvay, on today’s Supreme Court of Canada Decision
04: Will Canada turn a blind eye to the IGA’s “faux reciprocity”? (39)
January 2015
29: Professor Allison Christians posts “Responses to Questions on Canada’s Adoption of FATCA IGA”
27: Are strata corporations the next target of Canadian banks’ FATCA zeal?
2014
Isaac Brock Society Posts on FATCA and Canada – 2014 – at this link.
Pre-2014 – Lists are in preparation
You can also search for articles using the “Archives” button (on the menu at top of main page) for a list of all articles in reverse chronological order.
This article ‘The US Surveillance Dragnet Extends to Foreign Bank Data, Too’ by DJ Pangburn http://motherboard.vice.com/blog/the-us-surveillance-dragnet-extends-to-foreign-bank-data-too references an excerpt from the very strong and noteworthy letter from NDP Finance critic Murray Rankin against the intrusions of FATCA and the secrecy that has surrounded the negotiations whose outcome will affect Canadian taxpayers:
……”Canada’s New Democratic Party’s Official Opposition Critic for National Revenue, Murray Rankin, has a strong opinion on FATCA’s proportionality, too. On September 25th, Rankin wrote a letter to Canadian Minister of Finance James Flaherty, in which he expressed his reservations with the law.
New Democrats are concerned with the prospect of a foreign nation unilaterally imposing obligations on Canadian banks to disclose personal information. The Canadian Government has a responsibility to protect Canada’s tax base, and while we understand the United States’ desire to protect their own tax base, this should not come at the cost of the rights of individuals residing in our own country. Cracking down on tax cheats should occur through international cooperation rather than unilateral action. What’s more, the secrecy of the negotiations over this agreement has left Canadians in the dark as to the integrity of their personal banking information. The Canadian government should be standing up for the civil liberties of Canadians.”
The article uses the phrase “economic sanctions” to describe what happens to countries that don’t play the US’ FATCA game. I like that. It’s accurate, and it gets across the fact that the US is perfectly willing to treat countries it supposedly considers friendlies in the same manner it treats rogue regimes, e.g. North Korea.
Thanks, Badger!
Excerpt from a letter dated Dec 16 from John Weston M.P.
We shall see.
@ Duke of Devon
The excerpt is old boilerplate that has been used for months – exact same was in a letter Flaherty sent to constituents in September 2013. So much for “near future”… so much for Parliamentary democracy. Liberal MP Irwin Cotler and NDP MP Murray Rankin are both following this issue. Both are lawyers and experts in Constitutional and human rights law.
Government of Canada: Will there be a similar headline regarding Canadian financial institutions and FATCA in 2014?
Current Concerns > 2013 > No 39, 27 December 2013 > FATCA: “The real victims will be national sovereignty and citizens’ and consumers’ rights”
FATCA: “The real victims will be national sovereignty and citizens’ and consumers’ rights”
Interview with James George Jatras*, J.D., Washington D.C.
http://www.currentconcerns.ch/index.php?id=2594
Specifically references Canada. Useful arguments and talking points – good essentials for lobbying with Canadian officials and media.
Canada’s Oldest Citizen was born in the USA
Absurdity that anything FATCA should concern her or her family!
Section of newest Report to Congress (for fiscal year 2013) just came out. Mentions Canada and FATCA http://www.taxpayeradvocate.irs.gov/2013-Annual-Report/foreign-reporting/ with a quote from the Murray Rankin letter delineating the NDP position and concerns. – and includes link to the fulltext – from Maple Sandbox.
Mentions Canadians in Streamlined program and those moved from OVDI to Streamlined (in a footnote in the section about the OVDI and VD programs http://www.taxpayeradvocate.irs.gov/2013-Annual-Report/offshore-voluntary-disclosure/ as one of the Most Serious Problems http://www.taxpayeradvocate.irs.gov/2013-Annual-Report/Most-Serious-Problems/ – which also includes services and issues experienced by International Taxpayers.
Renunciation rates mentioned, exponential increases flagged and graphed, but not issue that numbers as reported could actually be higher.
Must read.
I have been reading the TAS report but have found nothing encouraging there yet. Nina might as well go looking for another job and then ask her boss, Koskinen, to turn off the lights permanently in the TAS office. I really don’t care at this point how much the IRS “improves” its services or how much it re-writes its ridiculous regulations. It has become one of many evil agents of an evil empire. I am only looking towards the Canadian government to protect its citizens. After all, it’s essentially our nation’s wealth which would flow to the US Treasury thanks to those FATCA penalties. It’s our nation’s FATCA attacked residents who will increase the number of people on social assistance and create a further drain on our economy.
Oops, meant to put that in FATCA Part Two. Will quietly double post now. Sorry.
‘Em’–‘FATCA attacked residents will increase the number of people on social assistance and create a further drain on our economy.’
Exactly my thoughts as well, and sadly, not exaggerated. One lives within one’s means, retires while they still have health, and now has the prospect of the inability to look after oneself in his senior years. The bully next door encroaching and expropriating what does not belong to him.
For those who might have access (sometimes the very expensive Lexis Nexis database is available only via academic libraries, law libraries, business) see:
‘Chapter 22 Exchange of Tax Information and the Impact of FATCA for Canada’ –
See http://www.lexisnexis.com/store/catalog/booktemplate/productdetail.jsp?pageName=relatedProducts&skuId=sku8140237&catId=cat2370006&prodId=prod19190327&ORIGINATION_CODE=00247#sthash.MbWKvK2d.dpuf
(You can also get a free download of the chapter on the UK, http://www.lexisnexis.com/store/images/samples/9780769853734.pdf )
http://michaelpower.ca/2014/02/fatca-charter-challenge
‘FATCA: Charter Challenge?’
“…I have not seen the actual text of the agreement but there has been no suggestion in the press that the deal is limited to U.S. residents. If one agrees with Peter Hogg’s assessment (see FACTA Revisited), this may pose an inconsistency with the Charter of Rights and Freedoms. This begs the next question. Will someone challenge this agreement using a Charter argument? If yes, FATCA may remain in the public eye a little bit longer….”
Feb 18, 2014 McGill Law podcast interview with Professor Allison Christians re FATCA:
http://podcasts.mcgill.ca/law-society/fatca-incoming-featuring-professor-allison-christians/
http://news.co.cr/fatca-puts-canada-and-costa-rica-in-the-irs-pockets/33627/
‘FATCA Puts Canada and Costa Rica in the IRS Pockets’
Posted by Jaime Lopez on March 6, 2014 in Business News, Costa Rica News, Guanacaste News
Canada’s IGA criticized in Costa Rica.
http://www.thestar.com/opinion/letters_to_the_editors/2014/03/06/us_arrogance_is_downplayed.html
Letter to the Editor:
‘U.S. arrogance is downplayed’
Published on Thu Mar 06 2014
Re: Ottawa must protect our economy, privacy, sovereignty from U.S. tax act, Opinion March 4
Ottawa must protect our economy, privacy, sovereignty from U.S. tax act, Opinion March 4
It is flabbergasting to consider the utter arrogance of the U.S., demanding that Canada spend hundreds of millions of dollars sorting and giving up financial records for their inspection.
It is doubly flabbergasting to hear that Finance Minister Jim Flaherty signed off on it despite Canadian sovereignty, not to mention the violation of every Canadians’ enshrined rights and freedoms……”
Hugh McKechnie, Newmarket
https://www.privacyassociation.org/publications/stoddart_joins_iapp_board
‘Canada’s draft legislation undermines FATCA agreement with U.S.’
Julius Melnitzer | March 10, 2014 | Last Updated: Mar 10 12:18 PM ET
cites Roy Berg.
Thanks to Canadian Girl for spotting it http://isaacbrocksociety.ca/2014/03/10/canadas-conservative-government-party-line-not-all-canadians-shall-have-the-same-rights-we-serve-only-the-banks/comment-page-1/#comment-1207303
http://www.thestar.com/opinion/letters_to_the_editors/2014/03/11/antifacta_lobby_growing.html
Letter to editor/Opinion letter;
‘Anti-FACTA lobby growing’
Published on Tue Mar 11 2014
Re: U.S. arrogance downplayed, Letter March 7
U.S. arrogance downplayed, Letter March 7
Hugh McKechnie is mistaken that not a single Canadian has objected to the bad U.S. Foreign Account Tax Compliance Act (FATCA) law Stephen Harper wants to impose on Canada. A small number of us have been complaining loudly for some time now.
We have in fact retained a constitutional expert lawyer, using donated monies from many Canadians, to help us in our fight to kill FATCA. “……..
@ badger
That’s a letter to the editor so unfortunately we can’t add comments and too bad about anti-FATCA being misspelled in the title. (I’ve done that myself.) Dr. Kish and Lynne certainly had it correctly spelled in their comments. I’m a bit confused about where Hugh McKechnie stated “not a single Canadian has objected to the bad U.S. Foreign Account Tax Compliance Act (FATCA) law”. It wasn’t in his letter to the editor on March 4th which was very good actually. I couldn’t find a comment by him for March 7th. Any ideas?
I just did a more careful read of Hugh McKechnie’s March 6th LTE. In it he states: “It is triply flabbergasting to hear not a word of objection from anyone.” So Dr. Kish just rephrased that sentence a bit. Here’s Hugh McKechnie’s entire LTE:
http://www.insurance-journal.ca/2014/03/17/7610/
From an insurance journal; good read – clarifies that the IGA is NOT a triumph, and that it does not exempt the registered accts from reporting by individuals or from US taxation, etc.
“The rude awakening comes, not only because our southern neighbour’s Internal Revenue Service (IRS) appears to have successfully imposed a brand new compliance regime on foreign companies it has no real jurisdiction to regulate, not to mention on the Canada Revenue Agency (CRA) itself, but because it brought to light just how broadly it defines who is a “U.S. person,” and who it believe owes allegiance, and taxes (or at least tax reporting), to the United States…”
I just noticed this thread and for the sake of completeness (and in the hope that no Canadian forgets my promise, below) I mention my brief letter that was published in the Feb 4 print edition of the National Post (A Canadian conservative leaning newspaper). The National Post included this letter next to one on metadata collection with both under a large photo of a Canada menacing-looking “security” Chief.
Obviously, my letter had zero impact because Mr. Harper decided to turn all of us over to the IRS the next day. However, my letter (forwarded to my Tory MP) makes a simple promise to Stephen Harper on behalf of all US persons and their children and I hope that my promise is carried out.
It says:
http://fullcomment.nationalpost.com/2014/02/05/todays-letters-opposing-the-surveillance-state-on-both-sides-of-the-border/
This author from a Canadian insurance journal certainly gets it regarding the FATCA IGA. (contrast that with the far from candid wording of a CBA member http://www.scotiabank.com/ca/en/files/14/03/Fact-print-en.pdf?v3 ).
See:
http://www.insurance-journal.ca/2014/03/17/canada-agrees-to-report-u-s-persons-to-the-irs-clients-with-ties-to-the-united-states-should-examine-their-own-status/
“You might believe that the United States’ tax department has no bearing or claim on you or your clients. FATCA (the Foreign Account Tax Compliance Act), has, however, taken a lot of people by surprise.
The rude awakening comes, not only because our southern neighbour’s Internal Revenue Service (IRS) appears to have successfully imposed a brand new compliance regime on foreign companies it has no real jurisdiction to regulate, not to mention on the Canada Revenue Agency (CRA) itself, but because it brought to light just how broadly it defines who is a “U.S. person,” and who it believe owes allegiance, and taxes (or at least tax reporting), to the United States.
The reporting regime for financial institutions was protested in Canada when it was introduced, on the legal premise that compliance would mean operating afoul of Canada’s privacy laws. So, Canada worked out an Intergovernmental Agreement (IGA) with the U.S. to get around the complaint. In short, rather than report to the IRS directly, Canadian financial institutions are now required to report on their U.S. clients to the CRA, who will in turn see that information out of the country, and into the hands of the IRS…”
“..Much was made of the agreement when it was signed in early February. Most notably because it came to be known that a lot of U.S. expats and their offspring – over a million Canadians, by some estimations – are actually U.S. persons, as far as that country is concerned, many of whom aren’t reporting home to the IRS every year.”………….
…”What it means
Information about the exemptions, however, has caused some confusion. In reality, the agreement means very little for clients who are caught by the U.S. Citizenship and Immigration Services’ ‘U.S. person’ definition….”.
“Chang emphasizes that, while banks don’t need to declare or report the exempt accounts, individuals are still on the hook to make their assets known to the IRS. “The TFSA is not tax free, you still have to report those. Same goes for RESPs. The penalty for not filing those forms is $10,000 per form. Even though these accounts are exempt, they want to know about them.” For reporting purposes, she says, “they’re exempt for the banks, they’re not exempt for individuals.””……….
Site says it updates this:
‘Cumulative List of Non-US Pension Funds Exempted by FATCA Intergovernmental Agreements
March 19, 2014’
http://www.groom.com/resources-743.html