FATCA Will Cost CRA $15.7-$15.8 Millon (or $5.7-5.8)

NDP MP Guy Caron asked how much FATCA will cost CRA.

When the committee was studying the matter, the department wasn’t able to provide us with the costs of the agreement, for either the agency or the financial institutions. Do you now have that information, from the moment when the funding for implementation is released?

Here’s the answer from CRA:

The costs that we are working with for our ability to implement the obligations that we have to administer this agreement is funding of, I believe, $15.7 million or $15.8 million, which has been allocated to the CRA to implement this over these next few years.

Those costs are principally intended to support the costs of implementing a new electronic form for mandatory filing for financial institutions to be able to file their obligations to us, a database in which we would be able to receive and store that information, and the tools to give us the ability to select files from that database for subsequent transmission electronically to the Internal Revenue Service in order to comply with those obligations.

So there you have it folks. Over $15 million of our tax dollars to violate our fundamental rights as Canadians for foreign government demands. (Thanks to Badger for this great find and for sending it to me and the Board of ADCS.)

That, of course, does not include the $750 million that Canadian banks say FATCA is costing them.

Nor does it include the money the government will spend of our tax dollars fighting us in court while we struggle to raise the needed money for our lawsuit.

UPDATE: Since I posted, EmBee pointed out the folllowing;

Hope I’m not upsetting this apple cart but if you read further into the transcript of that meeting you find this:

Mr. Mike Allen (Tobique—Mactaquac, CPC):
Thank you very much, Mr. Chair.
Thank you to our witnesses for being here.
I want to follow up with a few questions with respect to the intergovernmental agreement and FATCA.
I think, Mr. Huppé, you talked about $2.4 million to implement the intergovernmental agreement with the U.S.
Then, Mr. Stewart, you talked about $15 million allocated over the next few years to enable the implementation of FATCA.
Just how do the $2.4 million and the $15 million work in the estimates?

Mr. Roch Huppé:
In the estimates process, the $2.4 million is what we’re seeking to bring in for 2014-15 expenses related to this. So yes, it’s included in that $15 million.

Mr. Mike Allen:
How many years do you figure it’s going to take to round this out? Will it be five years before you meet all the objectives?

Mr. Rick Stewart:
I have the number of years.
Let me clarify. If I said $15 million, I believe I misspoke. If I might be permitted to correct myself, it’s $5.8 million over the period 2014-15 to 2018-19.

Mr. Rick Stewart:
The bulk of those resource requirements are in 2014-15, because we’re setting up the front-end system to be able to receive and transmit the information. Then there are some smaller amounts on an ongoing basis in those outer years to manage the ongoing vetting and assure ourselves that the information is of good quality.
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Whether it is $15 million or whether it is $5 million, it is still OUR tax dollars being spent to violate our rights. This also does not provide any information on what will be required in staff resources which could be significant.

5 thoughts on “FATCA Will Cost CRA $15.7-$15.8 Millon (or $5.7-5.8)

  1. Lynne Swanson Post author

    @EmBee Thanks. I updated the post.

    But, whether it is $15 million or $5 million, it is still our tax dollars being used to violate our fundamental rights as Canadians.

    The truth of the matter is CRA keeps changing their tune about the costs. Ranging from We don’t know to no extra costs to $15.7 to Oops, no that should have been $5.8 million.

    This does not appear to include ongoing staffing costs or resources. I have not seen anything on how many employees will be required, what the costs will be or how that will affect other services at CRA.

    Who knows what the real number is? Does CRA really know?

    Reply
  2. EmBee

    Cross posting my comment from Brock …

    http://www.parl.gc.ca/HousePublications/Publication.aspx?Language=E&Mode=1&DocId=6817074&File=0

    Hope I’m not upsetting this apple cart but if you read further into the transcript of that meeting you find this:

    Mr. Mike Allen (Tobique—Mactaquac, CPC):
    Thank you very much, Mr. Chair.
    Thank you to our witnesses for being here.
    I want to follow up with a few questions with respect to the intergovernmental agreement and FATCA.
    I think, Mr. Huppé, you talked about $2.4 million to implement the intergovernmental agreement with the U.S.
    Then, Mr. Stewart, you talked about $15 million allocated over the next few years to enable the implementation of FATCA.
    Just how do the $2.4 million and the $15 million work in the estimates?

    Mr. Roch Huppé:
    In the estimates process, the $2.4 million is what we’re seeking to bring in for 2014-15 expenses related to this. So yes, it’s included in that $15 million.

    Mr. Mike Allen:
    How many years do you figure it’s going to take to round this out? Will it be five years before you meet all the objectives?

    Mr. Rick Stewart:
    I have the number of years.
    Let me clarify. If I said $15 million, I believe I misspoke. If I might be permitted to correct myself, it’s $5.8 million over the period 2014-15 to 2018-19.

    Mr. Rick Stewart:
    The bulk of those resource requirements are in 2014-15, because we’re setting up the front-end system to be able to receive and transmit the information. Then there are some smaller amounts on an ongoing basis in those outer years to manage the ongoing vetting and assure ourselves that the information is of good quality.

    Reply

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