. . . that it appears that the Harper government is acceding to the demands of teh US government and preparing to implement an intergovernmental agreement (IGA) which will require Canadian financial institutions – banks, brokerages, mutual fund managers, possibly insurance companies – to determine the US status of their clients, and to report their and holdings above $50,000 per institution to the Canada Revenue Agency, which will then hand this information over to the US Internal Service (IRS).
There is some legitimate question whether this is a violation of the Charter of Rights and Freedoms – as well as a violation of Canadian banking regulations, which as I understand them currently prohibit determining the national status and origin of clients.
This does not affect only US persons as determined by the IRS. In the first linked article, the cost to major banks to comply is stated as $100 million per bank. I will guarantee you that banks will not eat this additional operating cost, nor do I expect the government to help them cover it. Banking fees will increase to cover the cost of financing this extraterritorial fishing expedition..
I am saddened though not particularly surprised that this surrender of national sovereignty is happening. Canadian financial institutions affairs are deeply intertwined with the US, and the US is still the financial superpower. I am not at all happy about it though.
I so look forward to participating in my first federal election.
Follow these links for more information about FATCA.
(podcast) http://www.cbc.ca/thecurrent/episode/2013/11/13/fatca-under-fire-from-tax-experts-canadian-citizens/
previouslytexan 