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.”