It’s time to move beyond mosquito and black fly time if the article No One’s Exempt From U.S. Taxman is correct.
It’s now black widow spider and rattlesnake time.
I suspect the article is more fear mongering and that the author doesn’t have any more inside information than we do.
However, this information is alarming if it is true:
Canada is currently negotiating an agreement with the U.S. that would result in the CRA being able to collect the relevant account information from Canadian financial institutions and forwarding it to the IRS. The Canadian government believes such an agreement will avoid breaking Canadian privacy laws.
I don’t think an IGA addresses privacy issues because no other Canadians are required to report such invasive information to CRA for transmission to a foreign government. In addition, an IGA will not address human rights and Charter issues. The Bank Act would also need to be changed to allow banks to ask those questions, creating a Charter issue.
Much more important to what I think is what Peter Hogg and CCLA think. They also don’t think an IGA resolves the legal barriers–including Charter issues.
I’m not sure if the author of the article is a lawyer or not. Based on his title (Manager of Legal/Compliance at an investment firms), he may be. Yet, he didn’t use LLB after his name, which lawyers often do when writing.
But, he says:
FATCA is coming to Canada in the near future
Keep swarming, buzzing and stinging. But, now start rattling and biting! (Actually, I thought we already were, but we haven’t been able to completely kill FATCA yet.