Badger posted this under What’s New, but I think an article from Central Credit Unions of Canada (FATCA Deadline Approaches. Details Remain Elusive) deserves a post of its own. Thanks Badger for this great find.
According to the article, Credit Unions Central of Canada continue to attend periodic briefings with Finance Canada and CRA. Well, that’s certainly more than those of us most directly affected are getting.
They continue to be told negotiations are still underway and that nothing will be announced until 2014 (Again, that’s a bit better answer than the “soon” we have been receiving for over a year.)
Based on “well-informed predictions” of Canadian officials (would be nice if they would tell us too!):
If a IGA is signed, credit unions would report to CRA who would report to IRS. Credit unions would begin in July, 2014 to screen for “US persons” on account openings. (Happy Canada Day! But, no word on just how they are going to work around around Canadian human rights and privacy laws to do that.)
This also says obligations would be determined by Canadian, not U.S. law. Again, no word if Canadian laws would be changed. (That, of course, then gets us into a Charter challenge).
Reporting will begin on new accounts and on accounts over $1 million in 2015 and on accounts over $50,000 in 2016.
This suggests RRSPs, RRIFs, TFSAs and Agri-Invest accounts will be exempt from reporting. It does not mention RESPs or RDSPs. Calgay411 has said credit unions don’t offer RDSPs. Does anyone know if they provide RESPs
Credit unions with less than $175 million in assets are exempt. Credit unions over that amount but with 98% of members who are Canadian residents would focus on reporting on US persons who are non-residents of Canada.
This also says Canadian financial institutions will have a choice when opening new accounts to either use self-certification or US indicia like US address, passport, telephone number, etc.
Most significantly, this says:
A question about place of birth will not be required.
It also says special rules are being created for people who are not US persons, but who have a US address like snowbirds or students.
We are still being left out of the loop on these threats being made against us, but this is much better information and tone than we’ve seen from Canadian Bankers Assocation. Unlike CBA, there is absolutely no threat to close accounts in this document.