Liberty and justice for all United States persons abroad

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Transfer of Records from CRA to IRS Doubled to 315,000

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Elizabeth Thompson of CBC is reporting the number of FATCA records transferred from CRA to IRS doubled from 2016 from 2015.

Banking records of more than 315,000 Canadian residents were turned over to the U.S. Internal Revenue Service last year under a controversial information sharing deal, CBC News has learned.

That is double the number transferred in the deal’s first year.

The Canada Revenue Agency transmitted 315,160 banking records to the IRS on Sept. 28, 2016 — a 104 per cent increase over the 154,667 records the agency sent in September 2015.

The article points out the flip flop of Trudeau, Brison and Goodale.

NDP Revenue Critic Pierre-Luc Dusseault finds the increase in reporting “surprising.” He says:

“I don’t see how there would be 150,000 more accounts reportable to the IRS in one year. It is something I will look into.”

Lynne Swanson has no idea why the number has doubled but finds the number low considering the number of people affected by FATCA.

Swanson hopes the Republican controlled Congress and President Trump will repeal FATCA. She is still waiting for the Federal Court of Canada to intervene to protect Canadians in Canada.

“A foreign government is essentially telling the Canadian government how Canadian citizens and Canadian residents should be treated. It is a violation of the Charter of Rights and Freedoms.”

65 thoughts on “Lynne Swanson at MapleSandbox re CBC / Elizabeth Thompson’s *Transfer of Records from CRA to IRS Doubled to 315,000*”

  1. I want to bang my head against a wall when I see ignorant comments like this …

    Ida Pomme @Chad Thompson
    If people want to hold 2 or 3 or 4 citizenships that is fine but they should be paying federal income tax to each country in full.

    I can no longer comment at CBC (the real name policy) and maybe that’s a good thing … I’d likely get banned for a snarky reply. However, it’s good to see this article from Elizabeth Thompson and many thanks to Lynne Swanson for her contribution.

  3. FATCA reporting is done in layers. Each year there is an added element. This past year there was “entity” reporting. Corporations of all types (including ADCT) received inquiries (see example) (in our case, from Paypal) asking if there were any US Persons as “owners/shareholders.” This is an infinitely more intrusive step than the first stage of FATCA. This is not just banks of individuals asking. These are banks now asking their corporate customers-getting more than one at a time, so to speak.

    For example with regard to individual accounts, this is what was to be sent in 2014:
    https://www.irs.gov/businesses/corporations/summary-of-fatca-timelines
    1. Account holder’s name
    For passive non-financial foreign entity, the name(s) of any substantial U.S. owners
    2. Account holder’s U.S. taxpayer identification number (TIN)
    For passive non-financial foreign entity, only the TIN(s) of any substantial U.S. owner(s)
    3. Account holder’s address
    For passive non-financial foreign entity, only the address(es) of substantial U.S. owner(s)
    4. Account number
    5. Account balance or value
    6. For accounts held by recalcitrant/nonconsenting account holders: report aggregate number and balance or value

    for 2016 this was added

    7. Income paid (except certain gross proceeds from the sale or redemption of property)

    for 2017 this was added

    8. Gross proceeds paid to custodial accounts

    For a more inclusive list see the box here Each year is subdivided (click on individual dots on the year page) into what is required for that year.

  4. “The Canada Revenue Agency transmitted 315,160 banking records to the IRS on Sept. 28, 2016 — a 104 per cent increase…”

    How many banking records (and what % increase) did the CRA receive from the IRS?

  5. Every morsel of information the IRS gets the less safe you are from search and seizure of your hard earned property. I exercise with a retired IRS Supervisor and he says they scan every item looking with Meta Data for income they can get from you. He also said the those who ran away to avoid taxes are vulnerable and they cannot tell the difference one from the other, so they scan everyone.

  7. I wonder if the CRA is going out it’s way to “help” banks identify their US tainted customers. If the CRA knows which individuals are USP’s and they also know which Canadian bank accounts those account holders receive interest from. Just sayin.

  8. Correction. That should be “If” the CRA knows which individuals are USP’s…

    The accounts where I signed W-9’s were reported, the remainder at another bank weren’t. At least they weren’t included in 2015’s batch of information slips. I don’t know about 2016’s.

  9. I just received this important email from the Canadian Civil Liberties Association (CCLA) — glad they are rapidly addressing the US Executive Order that permits this happening to vulnerable persons.

    Does this mean that the CCLA has the same concerns for those deemed US Persons in Canada, subject to US data collection / information sharing without due process through the IGA signed to make extra-territorial law Canadian law (to protect the Canadian foreign financial institutions over the rights of Canadian citizens and permanent residents)?

    Are all Canadians covered by the statement *A Canadian is A Canadian is A Canadian*?

    Highlighting this item (6):

    Canada must immediately review the impact of our information sharing agreements with the United States, including, but not limited to the Security Canada Information Sharing Act introduced by Bill C-51 (Anti-Terrorism Act, 2015); the information sharing agreements pursuant to the Canada-U.S. Security Perimeter Agreement; and the particular impact of Canadian national security agencies including the Canadian Border Security Agency sharing information with U.S. agencies. In particular Canada cannot engage in or enable discrimination based on country of origin, ethnic origin, or religious beliefs. Further, Canada must ensure that innocent persons are not put at risk by information provided by Canada.

    Dear Carol 

    I am writing to you today on behalf of myself and my colleagues at the Canadian Civil Liberties Association.
    The CCLA is seriously concerned about the potential impact of the Executive Order (“Protecting the Nation from Terrorist Attacks by Foreign Nationals”) issued by United States President Donald Trump on Jan. 27, 2017, upon individuals in Canada or seeking to reach Canada who are permanent residents, dual citizens, U.S. green card holders, and refugees fleeing persecution and seeking asylum in Canada.
    We applaud our nation’s leaders – including Prime Minister Justin Trudeau, premiers Rachel Notley and Brad Wall, and Toronto Mayor John Tory – who wasted no time Saturday letting the world know that Canada will open its doors to individuals fleeing persecution, terror and war. This was a courageous overture to demonstrate that Canada will honour its commitments pursuant to international law, domestic refugee protection laws, and our Constitution. They made Canadians across the country and overseas proud. Now it is time for the Canadian government to take urgent and concrete action to affirm that commitment.
    Friend, we know that refugees are among the most vulnerable people in the world, fleeing persecution in their home country with no state to protect them. Canada, has undertaken binding legal obligations in the 1951 UN Convention Relating to the Status of Refugees.  Refugees and asylum seekers, as well as immigrants and dual citizens living here in Canada, deserve better than to be tarred as suspects for no reason other than their country of origin. Such discrimination violates the Canadian Charter of Rights and Freedoms, Canadian human rights legislation, and international law binding upon Canada.
    There was some good news Saturday night when a New York District Court judge granted a stay that will block the deportation of people with approved refugee applications, valid immigrant and non-immigrant visas, and individuals legally authorized to enter the United States. Other judges in other jurisdictions granted similar stays, which prevent deportations, although not detentions.
    But the fight is not over yet.
    It’s time to put Canada’s commitments into action, ensuring real protection for immigrants and refugees that goes beyond lip-service. CCLA argues that Canada must take the following 8 steps immediately:
    1. Suspend the Canada-U.S. Safe Third Country Agreement  ̶  a long-term call from the refugee rights community in Canada which has become more urgent now than ever. The CCLA no longer considers the U.S. to be a ‘safe third country’ within the meaning of the agreement.
    2. Put in place procedures to efficiently process applications from all asylum seekers affected by the ban, who wish to seek refuge in Canada. Refugees and refugee applicants from the countries affected by the Executive Order, including those who are currently within the United States, are extremely vulnerable and must be protected.
    3. Increase the number of refugees accepted by Canada in 2017,  to accommodate individuals from those countries currently affected by the U.S. ban: Syria, Iraq, Yemen, Libya, Somalia, Sudan, and Iran. Canada must, without delay, raise or eliminate the cap recently imposed on privately-sponsored refugees from Iraq and Syria, and reinstate the policy allowing individuals from those countries to be considered for sponsorship without a UNHCR refugee certificate or equivalent.
    4. Ensure that Canadian airlines and other commercial enterprises do not collude with a foreign domestic order  ̶  and refuse boarding passes to immigrants, dual citizens, refugees and asylum seekers  based on country of origin. To do so violates Canada’s legal obligations set out in Canada’s Constitution, domestic laws, and international law binding upon Canada. Commercial enterprise cannot be a justification to engage in violation of law and humanitarian commitments.
    5. Ensure clear guidelines are provided by Canada and the Ministry of Foreign Affairs to all consular officials to assist any Canadians from the U.S. ban-listed countries who are overseas and find themselves stranded, detained, or otherwise prevented from returning to Canada. These guidelines must comply with the recommendations of the Federal Commission of Inquiry into the Actions of Canadian Officials in Relation to Maher Arar, and the Internal Inquiry into the Actions of Canadian Officials in Relation to Abdullah Almalki, Ahmad Abou-Elmaati and Muayyed Nureddin. While it has been clarified that Canadian dual citizens are not subject to the ban, Canada must provide emergency consular assistance to any dual citizens who have experienced difficulties as a result of the ban.
    6. Canada must immediately review the impact of our information sharing agreements with the United States, including, but not limited to the Security Canada Information Sharing Act introduced by Bill C-51 (Anti-Terrorism Act, 2015); the information sharing agreements pursuant to the Canada-U.S. Security Perimeter Agreement; and the particular impact of Canadian national security agencies including the Canadian Border Security Agency sharing information with U.S. agencies. In particular Canada cannot engage in or enable discrimination based on country of origin, ethnic origin, or religious beliefs. Further, Canada must ensure that innocent persons are not put at risk by information provided by Canada.
    7. Canada must immediately review the implementation of the U.S. International Traffic in Arms Regulations (ITARS), which has been used on several occasions by Canadian companies to unlawfully discriminate against individuals lawfully in Canada on the basis of their country of origin or contacts to a foreign country (as for example in Quebec (Commission des droits de la personne et des droits de la jeunesse) v. Bombardier Aerospace Training Center, 2015 SCC 39 ); and
    8. Provide immediate assistance for any individuals who may be stranded at Canadian airports, bus and train stations as a result of the ban, including those who anticipate being denied entry on arrival to the United States and those who have been turned away by U.S. Customs and Border Protection preclearance.
    Please support us in our work to uphold Canada’s laws and our international obligations to protect immigrants and refugees.  If you know of anyone affected by the U.S. Executive Order in Canada, call us so we can help. Where necessary we are able to enlist the aid of our network of top-notch pro bono lawyers and/or provide referrals to legal resources.
    Please donate to the CCLA today.  It is through your support that we can ensure resources are in place to act and protect everything that Canada stands for- including equality, freedom, and humanitarian protection to those fleeing violence, persecution, terror and war.
    Thank you for your ongoing support,

  10. Interesting. No mention of FATCA IGA though. Could you reply and ask if FATCA is also included in this. It would be interesting if you get a response.

  11. CCLA IS aware of our situation. Maybe we could ask them to include us though I know Lynne has tried very hard to get them to do that.
    JT is already saying Canada will accept the green card holders turned away…….but will he protect them from #FATCA?

  12. Cheryl and Patricia — my response to the email I received:

    From: “Carol Tapanila”
    To: mail@ccla.org
    Sent: Sunday, January 29, 2017 2:26:51 PM
    Subject: Re: 8 points for Canadian government action on U.S. travel ban — my questions …

    Dear CCLA,

    Thank you for this important email — it is good to see that the CCLA is rapidly addressing the US Executive Order that permits this happening to vulnerable persons.

    I would like clarification, though, on another group of vulnerable Canadians — those deemed by the US US Persons or US Citizens subject to FATCA, which was enabled by the Intergovernmental Agreement that makes extra-territorial US citizenship-based taxation and reporting law to be Canadian law. Does this mean that the CCLA has the same concerns for those deemed US Persons in Canada, subject to US data collection / information sharing without due process (obviously to protect the Canadian foreign financial institutions over the rights of Canadian citizens and permanent residents)?

    Should all Canadians be covered by the statement made by Prime Minister Justin Trudeau — *A Canadian is A Canadian is A Canadian*?

    Highlighting this item (6):
    Canada must immediately review the impact of our information sharing agreements with the United States, including, but not limited to the Security Canada Information Sharing Act introduced by Bill C-51 (Anti-Terrorism Act, 2015); the information sharing agreements pursuant to the Canada-U.S. Security Perimeter Agreement; and the particular impact of Canadian national security agencies including the Canadian Border Security Agency sharing information with U.S. agencies. In particular Canada cannot engage in or enable discrimination based on country of origin, ethnic origin, or religious beliefs. Further, Canada must ensure that innocent persons are not put at risk by information provided by Canada.
    Appeals for me and many other Canadians to support CCLA rest on the answer to my question.

    I hope the CCLA will step up to support my and many other Canadian families and individuals who have made Canada their home. Can you include us in your above statement?

    My regards,
    Carol Tapanila
    Calgary, AB

  13. @Carol jt needs to fight for all Canadians to travel to the USA on a Canadian passport.

  14. @Cheryl
    Exactly right.This is a long winded piece of flowery BS .Real political HS.They ‘righteously’ defend to the death those who are citzens of the world but are too scared to defend the rights of Canadian citzens.

  16. “The Canada Revenue Agency transmitted 315,160 banking records to the IRS on Sept. 28, 2016 — a 104 per cent increase…”

    ‘How many banking records (and what % increase) did the CRA receive from the IRS?’

    A spectacular 21,097% increase.

  18. @calgary

    Thanks for throwing it back in the faces of CCLA – I’ll frankly be stunned if they even respond. I thought exactly the same thing as you when I saw the organization’s head being interviewed on CBC today.

    I’d be happy to be proven wrong, but ever since Abby Deshman’s one-off presentation at the FATCA Forum in 2012, I can’t think of one single thing the CCLA has done to help our cause, which is every bit as legitimate as the plight of the refugees. The ultimate in hypocrisy is for them to reference Section 15 of the Charter when they have done absolutely nothing to defend us against discrimination based on “race, national or ethnic origin, colour, religion, sex, age or mental or physical disability”, as the Section states.

  19. “jt needs to fight for all Canadians to travel to the USA on a Canadian passport.”

    Maybe it would be better for a wall to prevent all Canadians to travel to the USA — at least in solidarity with those Canadians who can’t travel to the US because the US and Canada call them US persons.

    Of course the wall will have to work in both directions.

  20. A reminder that the BC Freedom of Information and Privacy Association (FIPA) organization wrote opposing the FATCA IGA:
    ‘BC FIPA calls for halt to implementation of US tax law in Canada’
    March 11, 2014 • IN CATEGORIES: Privacy Law

    “BC FIPA has weighed in on the side of privacy in the debate over the implementation of the American Foreign Account Tax Compliance Act (FATCA) in this country. In our submission to a consultation by the federal Ministry of Finance on the deal signed last month between Canada and the US, we highlighted the damage this would do to privacy rights not just for Americans living in Canada, but also for ‘snowbirds’ and other Canadians who might have a US address or phone number on file with their Canadian financial institution. Under the agreement, ‘Canadian financial institutions’ will be required to run an electronic scan of their clients’ accounts, looking for American addresses or phone numbers in the contact information. This could result in Canadian snowbirds and others having their financial information identified for sending to Ottawa, and then on to the Internal Revenue Service in Washington DC. We are not the only ones concerned about this issue. Internal e mails we received through freedom of information shows that bureaucrats at the BC regulator of financial institutions (FICOM) were of the view that credit unions in the province “…could be left in a tough spot to comply with the US/Canada agreement and meeting privacy rules.” Our submission deals with some of the constitutional problems involved with implementing the agreement, quoting a letter to the Ministry from Canada’s leading constitutional scholar, former law dean Peter Hogg. We also set out some of the issues related to federal and provincial privacy laws covering the public and private sectors; the federal government acting alone will not be able to amend these laws to let the implementation proceed. We will have more to say on this issue if/when the federal government brings in legislation to implement the Intergovernmental Agreement.

    FOI Release: BC regulator FICON has concerns about US tax law
    March 11, 2014 • IN CATEGORIES: FOI Requests and Releases Privacy

    Internal e mails FIPA received through freedom of information show that bureaucrats at the BC regulator of financial institutions (FICOM) have privacy concerns regarding the implementation of the US Foreign Account Tax Compliance Act (FATCA) in Canada. Download document https://fipa.bc.ca/foi-release-bc-regulator-ficon-has-concerns-about-us-tax-law/ https://fipa.bc.ca/wordpress/wp-content/uploads/2014/03/FATCA-Release.pdf

    March 11, 2014 • IN CATEGORIES: Policy Submissions and Letters Privacy

    FIPA’s submission to a consultation by the federal Ministry of Finance on the implementation of the American Foreign Account Tax Compliance Act (FATCA) in Canada. We highlighted the damage this would do to privacy rights as Canadians living in the US, and Americans living in Canada could have their financial information identified for sending to the Internal Revenue Service in Washington DC. Download submission” Submission: Ministry of Finance consultation on FATCA https://fipa.bc.ca/submission-ministry-of-finance-consultation-on-fatca/ https://fipa.bc.ca/wordpress/wp-content/uploads/2014/03/MoF-consult-sub-signed-Mar-10-2014.pdf

    https://fipa.bc.ca/?s=fatca

    So why did the BC FIPA recognize the issue but not the CCLA?

  21. @ Norman Diamond
    Not every comment requires a counter comment from you. My opinion, not worth much I know, is that one of yours (above) is particularly uncalled for. Patricia Moon has asked us to be more respectful of each other … please?

  22. Again a reminder and request to all you readers – if you come across, or have saved webpages and documents, please please start saving them to the Wayback Machine. Some very valuable early webpages and links to documents are no longer in fulltext, or have been taken down, etc.

    Preserve access by copying and pasting the link into the box at the lower right side of the page on this site:
    https://archive.org/web/

    See the box labelled;
    ‘Save Page Now
    Capture a web page as it appears now for use as a trusted citation in the future.
    Only available for sites that allow crawlers.’

    We need to preserve important documents and information in order to fix URLs and continue to cite full sources for others to access, read and critique for themselves, as much as possible.

  24. Thanks so much for alerting us to all of this, Carol, and for your letter to the CCLA. The CCLA was quick to jump on the civil liberties issues resulting from Trump’s Executive Order (and rightly so) but continues to ignore the tax matter that was dumped on us by Obama. Their letter to you appealing for donations is a slap in the face to anyone who has been labouring under FATCA/CBT these many years. It’s an issue well known to this organization and they have done nothing since 2012 to support us in any way. My emails to them in recent years were never answered although I had a very nice phone conversation with Abby Deshman way back when. I commend you for opening the communication lines once again.

    The number of Canadian accounts “invaded” by the IRS is on its merry way toward half a million and our politicians and watchdog agencies sit on their butts and do nothing but “comply” (God, I hate that word) with the bully to the south.

    It’s about time for that court date.

  25. @badger

    Thank you for putting up that information. I am not familiar with doing that, going to that site etc

    Maybe folks who want to help with something but not on a permanent basis, could work out a system for doing what you suggest……..

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