I posted this on another thread, but it really deserves its own post. This submission was recently made to the Office of the Chief Council and Associate Chief Council (International) to the IRS and prepared jointly by the Canadian Bankers Association, the Investment Funds Institute of Canada, and the Investment Industry Association of Canada. It brings up key sticking points in draft forms W-8IMY, W-8ECI and W-8EXP that are “predominantly technical in nature“, and again points out how FATCA’s devil is in the details.
As Badger notes:
“Interesting points about the legal/illegal use and disclosure of SIN numbers, privacy, and Canadian law, as well as the issues of official versions of all those forms and instructions in languages other than English. Specifically French language in Canada, as we are officially a bilingual country, but the CBA document also mentions in passing that other languages would be required – which of course would be the case when FATCA is being imposed on the entire world. Currently the IRS forces those in other countries to bear the significant cost of providing taxpayer submissions and filings plus supplementary documents translated to IRS satisfaction, by certified translators. Those service don’t come cheap.
And I am wondering also, how do US IRS requirements for duals intersect with sovereign rights of Canadian First Nations re taxation? Presumably there are dual Canadian citizens/US persons who are also First Nations individuals.”
September 20, 2012 FATCA Commens from Canadian Financial Industry
Observations, especially, the often repeated statement:
This is an encouraging statement:
As is the following referring to Canada as a bilingual country. Will the US require each country to provide the translations of forms and convoluted instructions, at a further cost to financial institutions in whatever country?
Again, Canadian privacy laws are referenced.
…”One dares to wonder whether increased tax revenues are truly the purpose
here. As initially designed, a domestic-focused law intended to improve
tax transparency, FATCA has become a monster causing havoc on the world
economy, through which all participants will lose … Americans and
non-Americans.”……………”Mistakes will happen for sure. Accountholders will be “recalcitrant”
without knowing it. All investors − Americans and non-Americans − will
be required to complete all kinds of forms and inquiries, and
withholding will end up being applied erroneously to accounts. And, the
respective FFIs and/or accountholders will have to deal with the arduous
task of somehow obtaining redemptions from the IRS. Interest on such
erroneous withholding, by the way, will not be paid, and thus the IRS
might not be in any hurry.“…..http://www.thedailybell.com/28116/Frank-Suess-How-Does-FATCA-Impact-You
Non-US investors are at risk as well as US citizen/deemed taxable persons. Non-US investors will avoid US investments and securities. Non-US investors married to US taxable persons outside the US should avoid the US investments and securities on principle – and because it will impact their US citizen/US taxable spouses and relatives as beneficiaries.
Hope this inverts, and negatively impacts the US – for countless years – even if FATCA is adjusted or defeated.