Here is the proposed legislation to enable FATCA IGA in Canada, which is called Legislative Proposals Related to the Canada-United States Enhanced Tax Information Exchange Agreement Implementation Act.
I don’t pretend to understand all the legalese, but this jumped out at me:
Inconsistent laws — general rule
4. (1) Subject to subsection (2), in the event of any inconsistency between the provisions of this Act or the Agreement and the provisions of any other law (other than Part XVIII of the Income Tax Act), the provisions of this Act and the Agreement prevail to the extent of the inconsistency.Inconsistent laws — exception
(2) In the event of any inconsistency between the provisions of the Agreement and the provisions of the Income Tax Conventions Interpretation Act, the provisions of that Act prevail to the extent of the inconsistency.
Four lawyers have confirmed this means where this new law is in conflict with existing Canadian laws, the law to enable the FATCA IGA will prevail over all other federal laws except the Charter.
That means that this law will supercede Canadian banking, privacy and human rights laws.
This means our only recourse may be a Charter challenge. Scary thought. That could be long, messy and expensive if we have grounds for a challenge. Some of us are exploring our options in that regard. Stay tuned.
In the meantime, be sure to get your submission into Finance Canada before the deadline of March 10 to let them know what you think. Also lobby your MPs hard to prevent this law from ever being passed.
I truly did not think we would ever see the day when this would happen.