FATCA Information from Canada Revenue Agency

Here is Information on FATCA From CRA.

Updated link to FAQS on IGA: http://www.cra-arc.gc.ca/tx/nnrsdnts/nhncdrprtng/fq-eng.html

This information in particular jumped out at me under II

Will my financial institution be asking me if I was born in the U.S.?

A financial institution complying with the agreement will not be required to ask its account holders about their place of birth.If a financial institution, applying the due diligence rules of the agreement to its accounts, discovers any records connected to the account that have an unambiguous indication of a U.S. place of birth, the financial institution may treat the account as a reportable account or follow up with the account holder to obtain documentation that shows the account holder is not a U.S. resident or U.S. citizen.

Does the agreement require Canadian financial institutions to report to the CRA on any individuals who were told that they relinquished their U.S. citizenship when they became Canadian citizens?

The agreement does not require Canadian financial institutions to report on any individuals who have relinquished their U.S. citizenship and are not residents of the U.S.

Most of our banks won’t have an “unambiguous U.S. place of birth in their records because they were not able to ask that question when we opened accounts with them.

I don’t have the energy or concentration to review this or comment in detail tonight (just returned from the Information Session in London Ontario).  However, I wanted to get it posted so others could see it and share their thoughts.

 

 

37 thoughts on “FATCA Information from Canada Revenue Agency

  1. I so agree with maz57. And I really think that’s what Flaherty expects us to do. For U.S. persons to offer up such personal info. to the banks seems naive and foolish. I like Maz57′s take on the whole process . . . it’s illegal / immoral to begin with and I do not feel obligated to enter into such an agreement with anyone.

  2. After posting the above I Googled the name of the US town I was born in. There is a town of the same name in Ontario!

  3. I “FATCA proofed” my accounts a long time ago, but I’d have no qualms whatsoever lying on an account application if asked an illegal question. The banks are merely covering their own asses here. Its not their job nor are they enthusiastic about playing detective for the IRS.

    So give them the answer they want to hear. Once this wrong information is entered into the system, problem solved. People, we need to throw a few wrenches into the FATCA gears. When the game has illegal rules, the gloves are off; make your own rules! I don’t see we that we have any moral obligation to be truthful when the game is immoral to begin with.

    I can’t see the CRA going on a US witch hunt. Their job is to collect tax from Canadian residents, not go on a fool’s errand for a foreign government.

  4. The thing about it now is, even if you say you are not a US citizen nor a US resident, they still ask you the country where you were born. It looks like they are preparing the new accounts to be scanned for compliance purposes. I think the banks are trapped between their clients and the IGA signed between Canada and the US. Also, by sending financial info on clients to the CRA only, they seem to profess to clients that they are respecting their privacy. What is weird in all this is that the CRA will be providing the IRS with financial info they themselves should not have and usually do not have access to some if it. Mercifully from reading all tax experts documents it seems that letting the IRS enforce the collection in Canada, particularly on dual citizens is unlikely to happen under the present Canada-US tax treaties. For the future, knowing the US intentions, who knows what will happens. Hopefully with all the steam building up in the US and in Canada, FATCA will be repealed in the future by the republicans, or the US Government will come to it’s senses and will re-legislate the right way, or the Canadian courts will strike down some FATCA reporting making it useless. Actually, I am just repeating what I have been reading on this blog. I will be interested in hearing other people comments on this. Thx.

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