Canadian institutions scramble in race to comply with FATCA

Stephen Kish and the ADCS-ACSC.ca site and initiative mentioned in this Financial Post article. Note this specific comment left (by a commenter on this blog) to the article:

Bar none, the most idiotic financial blunder I ever made in my life was to have married a US citizen and then move “off the plantation.” Not only is the USA and many of it’s people not understanding of why one would do such a thing, they’re actually insulted by this…..hence this kind of extraterritorial regulation.

Sorry to the general public of my once strong Canada, but as I’m this late along in life, there’s a good chance I’ll end up being a parasite off the general taxpayer here in my old age, as all my previous diligent retirement planning will have all been for the government of our unwelcome neighbour. Even worse, low estimates say there are over 1 million of us in Canada.I have no reason to think the Gov’t of Canada won’t someday soon become a willing enforcer of the IRS.

If only the USA was like any other country of significance in this world and only stuck to worrying about those within it’s borders and left the rest of us alone who owe them nothing (except in their minds) I wouldn’t be saying this. My spouse would give up US citizenship in a heartbeat if it didn’t mean even more immediate financial ruin

Canada should, for it’s own good, place an immediate moratorium on any immigration of US citizens to prevent even further economic damage in the future. If these new immigrants do “comply” with their “master,” there are still huge downsides for Canada.

Financial Post | Business

The incorporation of the U.S. Foreign Tax Compliance Act into Canadian law is proving very costly for large Canadian financial institutions and an expensive administrative nightmare for smaller ones.

“Where an institution falls on the FATCA preparation spectrum varies with the size and sophistication of the enterprise,” says Adrienne Oliver in Norton Rose Fulbright Canada LLP’s Toronto office.

On June 19, Parliament passed the implementing legislation. Its main purpose is to track down Americans who are avoiding their obligations to pay U.S. tax on their worldwide income. The law requires most Canadian financial institutions to report the financial activities of their American clients to the Canada Revenue Agency, who will then provide it to the IRS pursuant to existing agreements with the U.S.

“Regardless of the method Canadian banks use to identify U.S. account holders, they will be undertaking a monumental project that is ongoing and not time-limited,” says Veronika…

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