Comment a short while ago from Haydon Perryman:
Forgive me, I’m sure I should start a new thread but I don’t know how.
I had a look at the Canadian IGA.
FATCA Agreement – Canada, February 5, 2014 “Agreement Between the Government of the United States of America and the Government of Canada to Improve International Tax Compliance through Enhanced Exchange of Information under the Convention Between the United States of America and Canada with Respect to Taxes on Income and on Capital “
It is up for review as of December 31, 2016. P18.
It references Article 6 commitments.
The first item in Article 6 is US reciprocity*. (Which looks unlikely to say the least.)
* Article 6
Mutual Commitment to Continue to Enhance the Effectiveness of Information Exchange and Transparency
- Reciprocity. The Government of the United States acknowledges the need to achieve equivalent levels of reciprocal automatic information exchange with Canada. The Government of the United States is committed to further improve transparency and enhance the exchange relationship with Canada by pursuing the adoption of regulations and advocating and supporting relevant legislation to achieve such equivalent levels of reciprocal automatic information exchange.
Term of Agreement
- This Agreement shall enter into force on the date of Canada’s written notification to the United States that Canada has completed its necessary internal procedures for entry into force of this Agreement.
- Either Party may terminate this Agreement by giving notice of termination in writing to the other Party. Such termination shall become effective on the first day of the month following the expiration of a period of 12 months after the date of the notice of termination.
- The Parties shall, prior to December 31, 2016, consult in good faith to amend this Agreement as necessary to reflect progress on the commitments set forth in Article 6 of this Agreement.
From an earlier comment, Haydon Perryman:
IMO FATCA is here to stay. Five years ago we could have prevented it but we did not do that. We have to live in the world as it as, not as it should be. We can’t prevent FATCA. That ship has sailed. I know many of you disagree. We can prevent the CRS but only if we stop focussing on the past (FATCA).
Maybe we can’t stop the CRS either but we can make sure America signs up by embarrassing them or by treating the IGAs as breached given the lack of reciprocity.
Presently the U.S. has no reciprocity on FATCA and is the only OECD member of the entire 34 not to have committed or signed up to the CRS.
This means that the U.S. is the biggest secrecy jurisdiction in the world and remains so, whilst weakening all the others.
This means the hot money will go to the US.
Given that there is no way they’ll get even the $8.9B they say they estimated, the only “benefit” of FATCA is that money flows to the US.
Meanwhile we argue about spilt milk whilst allowing the US not to sign up to the CRS.
Also, nothing has changed. For financial secrecy, in general put you money in the US. For secrecy of beneficial ownership go to the Caymen Islands. For corporate secrecy keep ownership at less than 25% in an Inter Governmental Agreement country.
It’s shocking, world wide misery on a worldwide scale with nothing positive achieved.
My uneducated / uninformed — or just plain old based-on-common sense question (and we may have previously discussed?):
We are raising funds for litigation against the Canadian government for its signing and implementation of the FATCA IGA in Canada. Would it not be prudent for the Government of Canada to put some teeth into their review with the US (to take as of December 31, 2016) and further negotiation with the US to MAKE SURE no information on Canadian citizens or permanent residents is handed over to the US without reciprocity from the US — and not until this review has taken place? And, the same with any other country?