| Revision as of 19:27, 4 March 2014 editL.tak (talk | contribs)Extended confirmed users, Pending changes reviewers22,226 edits →The Hill February 11, 2014 report: rm blog; blogs are not normally considered reliable sources; let alone meriting its their own section….← Previous edit | Revision as of 19:31, 4 March 2014 edit undoL.tak (talk | contribs)Extended confirmed users, Pending changes reviewers22,226 edits →top: specifications regarding the agreementNext edit → | ||
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| {{mergeto| Foreign Account Tax Compliance Act|discuss=Talk:FATCA agreement between Canada and the United States#Merge|date=February 2014}} | {{mergeto| Foreign Account Tax Compliance Act|discuss=Talk:FATCA agreement between Canada and the United States#Merge|date=February 2014}} | ||
| The '''FATCA agreement''' is |
The '''FATCA agreement''' is an international agreement signed between ] and the ] that allows the implementation the ] in Canada. It requires ratification by Canada before entry into force. | ||
| The American Act requires Canadian financial institutions, and ]s, including individuals who live outside the ], to report the principal amount held in their financial accounts outside of the United States to the ] (IRS). It is one of 22 intergovernmental agreements the US has |
The American Act requires Canadian financial institutions, and ]s, including individuals who live outside the ], to report the principal amount held in their financial accounts outside of the United States to the ] (IRS). It is one of 22 intergovernmental agreements the US has concluded with other states to implement the FATCA.<ref>{{cite news |url=http://in.reuters.com/article/2014/02/05/canada-usa-fatca-idINL2N0LA1G120140205|title=Canada and U.S. sign agreement on tax evasion|publisher=Reuters|date=6 Feb 2014}}</ref> | ||
| According to the ] (CBC) there are about one million American citizens living in Canada. This treaty also affects their spouses, children, or anyone whom they own property, share a business connection, or hold a joint financial account with. | According to the ] (CBC) there are about one million American citizens living in Canada. This treaty also affects their spouses, children, or anyone whom they own property, share a business connection, or hold a joint financial account with. | ||
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| The agreement exempts ]s, ]s and ]s.<ref>{{cite news|url=http://business.financialpost.com/2014/02/07/ottawa-had-little-choice-in-signing-controversial-deal-with-u-s-tax-man/|title=Ottawa had little choice in signing controversial deal with U.S. tax man|author=Theresa Tedesco|publisher=Financial Post}}</ref> | The agreement exempts ]s, ]s and ]s.<ref>{{cite news|url=http://business.financialpost.com/2014/02/07/ottawa-had-little-choice-in-signing-controversial-deal-with-u-s-tax-man/|title=Ottawa had little choice in signing controversial deal with U.S. tax man|author=Theresa Tedesco|publisher=Financial Post}}</ref> | ||
| The cost to Canadian banks is said to be "enormous".<ref name="ref-134632373">{{cite news|url=http://www.cbc.ca/news/politics/fatca-deal-takes-some-heat-off-canadtreaian-banks-1.2524444|title=FATCA tax deal with U.S. takes some heat off Canadian banks - Politics - CBC News|publisher=cbc.ca|accessdate=2014-02-05}}</ref> | The cost to Canadian banks is said{{who?}} to be "enormous".<ref name="ref-134632373">{{cite news|url=http://www.cbc.ca/news/politics/fatca-deal-takes-some-heat-off-canadtreaian-banks-1.2524444|title=FATCA tax deal with U.S. takes some heat off Canadian banks - Politics - CBC News|publisher=cbc.ca|accessdate=2014-02-05}}</ref> | ||
| According to ], ] minister ] promised that this treaty will not impose any ] or ] on people holding accounts in Canada.<ref name="ref121671392">{{cite web|url=http://www.bloomberg.com/news/2014-02-05/canada-signs-fatca-tax-pact-with-u-s-.html|title=Canada Signs FATCA Tax Pact With U.S. - Bloomberg|publisher=bloomberg.com|accessdate=2014-02-05}}</ref> | According to ], ] minister ] promised that this treaty will not impose any ] or ] on people holding accounts in Canada.<ref name="ref121671392">{{cite web|url=http://www.bloomberg.com/news/2014-02-05/canada-signs-fatca-tax-pact-with-u-s-.html|title=Canada Signs FATCA Tax Pact With U.S. - Bloomberg|publisher=bloomberg.com|accessdate=2014-02-05}}</ref> | ||
Revision as of 19:31, 4 March 2014
 | It has been suggested that this article be merged into Foreign Account Tax Compliance Act. (Discuss) Proposed since February 2014. |
The FATCA agreement is an international agreement signed between Canada and the United States that allows the implementation the Foreign Account Tax Compliance Act in Canada. It requires ratification by Canada before entry into force.
The American Act requires Canadian financial institutions, and United States persons, including individuals who live outside the United States, to report the principal amount held in their financial accounts outside of the United States to the Internal Revenue Service (IRS). It is one of 22 intergovernmental agreements the US has concluded with other states to implement the FATCA.
According to the Canadian Broadcasting Corporation (CBC) there are about one million American citizens living in Canada. This treaty also affects their spouses, children, or anyone whom they own property, share a business connection, or hold a joint financial account with.
The agreement exempts TFSAs, RDSPs and RESPs.
The cost to Canadian banks is said to be "enormous".
According to Bloomberg, Revenue Canada minister Kerry-Lynne Findlay promised that this treaty will not impose any U.S. taxes or penalties on people holding accounts in Canada.
October 2013 Financial Post report
While anticipating the agreement but before it was signed, Scotia Bank, one of Canada’s large banks, spent almost $100 million, implementing a system to report to the United States the account holdings of Canadians of American origin, and their Canadian born spouses in order to comply with FATCA. According to the Financial Post FATCA requires Canadian banks to provide information to the United States including total assets, account balances, account numbers, transactions and more, and includes assets held jointly with Canadian-born spouses and other family members. .
CTV January 2014 report
In January 2014 CTV Television Network reported that Allison Christians, the H. Heward Stikeman Chair in Tax Law at McGill University, said that the Foreign Account Tax Complianc Act could impact all Canadians. "The way the U.S. law is written, financial institutions around the world have an obligation to ensure that any accounts that are held by American people with U.S. status, that information about that account is given to IRS,"
FATCA requires Canadian banks to identify and supply the financial information of anyone considered to be a U.S. person to the IRS. FATCA may affect Canadians with no ties to the U.S. Christians says financial institutions face high costs to implement the new rules, and all customers will face higher banking costs typically passed on to clients in the form of higher fees and charges.
References
- "Canada and U.S. sign agreement on tax evasion". Reuters. 6 Feb 2014.
- Theresa Tedesco. "Ottawa had little choice in signing controversial deal with U.S. tax man". Financial Post.
- "FATCA tax deal with U.S. takes some heat off Canadian banks - Politics - CBC News". cbc.ca. Retrieved 2014-02-05.
- "Canada Signs FATCA Tax Pact With U.S. - Bloomberg". bloomberg.com. Retrieved 2014-02-05.
- "Electronic spying 'a big issue' for banks, Scotia CEO Waugh says | Financial Post". Business.financialpost.com. 2013-10-23. Retrieved 2014-02-17.
- "Dual Canadian-American citizens: We are not tax cheats | Financial Post". Opinion.financialpost.com. 2013-09-17. Retrieved 2014-02-17.
- http://www.ctvsnews.ca/business/q-a-how-will-the-new-u-s-tax-law-affect-canadians-1.1638582