Canada, U.S. sign FATCA tax deal; banks to share info with IRS

To those U.S. citizens living in Canada.

Global News

Canada and the United States have signed a tax deal under which Canadian banks will try to identify accounts held by American citizens and report them indirectly to the IRS, using the CRA as a go-between.

The arrangement solves a problem for the banks, which were caught between facing a punitive 30 per cent tax on their U.S. investments under the Foreign Account Tax Compliance Act if they didn’t sign on to the disclosure agreement, and potential breaches of Canadian privacy law if they dealt directly with the IRS.

It has been decried by dual citizens and Americans in Canada as a violation of privacy and a way for the IRS to keep tabs on people with no financial ties to the U.S.

READ: Why are so many American expats giving up citizenship? It’s a taxing issue

Finance Minister Jim Flaherty’s office announced the deal Wednesday. It takes effect July…

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About Ossington

I often think but seldom share these thoughts. And if the product of my thinking is to affect anything but my own sense of satisfaction, then surely it must be shared. Here you may try to know what I believe to know.
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