As WhiteKat posted under What’s New, there has been a FATCA delay of six months. Hopefully, this will be the beginning of the end of FATCA.
However, Kevn Nightingale, the expatriate tax lead for MNP, is predicting Americans in Canada could be the “first victims.”
He first spoke about what a “nightmare” FATCA is to administer and what a challenge developing a a FATCA data base is.
After he says all of that, he raises some alarm bells with this statement;
And since Canada’s easy for the IRS to reach, “it wouldn’t surprise me if Americans who live in Canada are the first victims. Some of those people are going to be made examples of. It will take until 2016 or 2017 for real penalties to show up, but it will happen.
I made the comments below in the What’s New thread, but because of the very serious consequences of such a statement, I’ve decide to give this it’s own thread.
I don’t know if this is simply speculative fear mongering or if he has inside information.
However, he did not mention CRA will not collect penalties for IRS on Canadian citizens of residents. I don’t know if this was not mentioned because Mr. Nightingale does not know (which makes me question his professional knowledge) or if it is because he does not want to (which makes me question his professional integrity).
In any case, it is clear we need to continue to be vigilant.