” As noted in the previous post, we now have a new American law – the Foreign Accounts Tax Compliance Act (“FATCA”) — that essentially requires organizations in Canada to identify clients who are American; obtain their consent to the disclosure of sensitive personal information to the IRS or withhold the provision of a service for a failure to provide that consent. How does that mesh with the obligations of those organizations under Canada’s Personal Information Protection and Electronic Documents Act (“PIPEDA”)?
So what do we tell those Americans who are permanent residents of Canada and consider themselves as Canadian but who haven’t taken that final step in renouncing their American citizenship? What happens if the American taxpayer expressly doesn’t consent (FATCA would appear to require a “consent”)? At first blush, it seems PIPEDA doesn’t provide much help.
Non-Americans shouldn’t be too smug here — one can’t help but wonder when (not if) this idea will catch on with tax authorities elsewhere.
Benjamin Franklin is quoted as saying “In this world nothing can be said to be certain, except death and taxes.” Should we add the further erosion of privacy? “