CRA Gave IRS Bank Records Under $50,000

CRA Shared Information on Smaller Bank Accounts with IRS according to an article by Elizabeth Thompson in iPolitics today.

Elizabeth reports:

The banks are not required to automatically review or report Canadian bank accounts under $50,000, leading many of those who might be subject to the information sharing move to presume that their banking information wasn’t being shared with the United States.

However, documents tabled recently in Parliament and information obtained by iPolitics from the CRA indicate that information on many individual accounts worth less than $50,000 is, in fact, being shared with the IRS.

It seems the Privacy Commissioner is concerned–but hasn’t done much to stop this violation of privacy

I think banks are taking different approaches. I believe TD is reporting accounts under $50,000 but I understand CIBC is not reporting if the aggregate amount is under $50,000.

Whatever the situation, the betrayal of Canadians by their financial institutions and government continues.

4 thoughts on “CRA Gave IRS Bank Records Under $50,000

  1. PatCanadian

    @Lynne: Yes, outrageous that the CRA shared information on smaller bank accounts with the IRS.

    Can’t help agreeing with Anthony:

    “If you give the U.S. your hand, they will want the arm and shortly after will cut off your head. That’s how a bully operates. We all should remember that from schoolyard recess!”

  2. Lynne Swanson Post author

    Anthony: Welcome to Sandbox. I don’t think I have seen you reporting here before.

    You are correct. It keeps getting more and more outrageous. Are you affected personally by this assault on our rights or is your interest as a lawyer?

    Either way, are you aware lawyer’s trust accounts are required to be reported under FATCA? How’s that for outrageous?!?

  3. Anthony

    This story only gets more outrageous and offensive by the day. The FATCA IGA between the United States and Canada, as well as with other countries, clearly states that only accounts with values exceeding $50,000 are required to be reported. That individual banks are so cavalier and send private and confidential banking information that is not required to be sent is counter to the law and has exposed individual personal financial information, outside the scope of this law, to a violation of confidentiality.

    As a lawyer, my strong advice would be for those people at banks where it can be clearly proven that this took place, to bring a law suit against the bank immediately and better if it would be a class action lawsuit.

    The lack of respect for law, sovereignty and keeping financial information confidential is already being violated by Canada’s caving in to the bullying and threats of the totalitarian regime to the South of our border. Now, if Canadian banks are taking it upon themselves to pass confidential and personal banking information, outside the scope of the law, to another country, without even informing the owner of those accounts, then this must be fought in the most relentless way imaginable. This problem will only get worse in the near future. I have been told that plans are underway to include the annual resale value of all non-U.S. property holdings, including your own home, on future FBAR reports. That means that your primary residence will soon be fair game for the IRS. Second, plans are underway to also include on the FBAR report any business that a designated U.S. person may own outside the U.S., including all personal details of non-U.S. partners in the venture. So, if you are a Canadian with U.S. taint, you will soon have to report your Canadian home’s resale value, year of purchase, personal identifying details on those who also own the home, as well as the same sort of details for any business that you may own in Canada.

    This hasn’t stopped because the action being taken, while correct and laborious, hasn’t been confrontational enough, thereby not getting enough traction in the media to put pressure on the Canadian Government to put an end to this insanity. If you give the U.S. your hand, they will want the arm and shortly after will cut off your head. That’s how a bully operates. We all should remember that from schoolyard recess!

    1. nobledreamer-Tricia

      Thanks to EmBee at IBS who brought this comment to my attention. 

      Anthony, your sentiments are much appreciated. I have two things. First, as much as we all hate it, there is not much we can do about banks overreporting $50k. The IGA specifically allows them to do this if they choose. 

      What is of more interest, is this business of reporting the re-sale value of one’s CDN principal residence on an FBAR. I would expect, should the US try to do something that outrageous, that it would be on the FATCA form 8938, which has more to do with assets. In fact, I vaguely remember it being on the original draft as a possible, possible, asset to be included. It was removed and I have never heard anything further about it.

      Could you point me in some direction to look into this? Is this a suggestion in the Proposed RuleMaking section of the Federal Register somewhere? If this is going to happen, we need to understand exactly what it is and how they are going to do it.

      If this is true, I pray for mass civil disobedience. The line has to be drawn somewhere. I still cannot get over this is happening and I’ve been involved since Fall 2011. The complicity of other governments will have to stop at some point……….

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