U.S. tax law puts privacy of Canadians in ‘jeopardy,’ NDP warns

Thanks to Murray Rankin and Nathen Cullen for attempting to remove FATCA from the omnibus bill.

Financial Post | Business

OTTAWA — The NDP is calling on the federal government to delay passing legislation aimed at cooperating with the United States in taxing its citizens living in Canada, saying the law could “violate the privacy and constitutional rights” of those residents and needs to be studied more closely.

The U.S. Foreign Account Tax Compliance Act (FATCA) requires Americans living outside the United States to pay taxes on annual income earned abroad.

A tax-information sharing agreement, signed by Canada and the U.S. in February, also affects those with dual U.S.-Canadian citizenship — and is part of Ottawa’s omnibus budget bill, C-31, now before Parliament.

In addition to individual compliance, the U.S. act would make it mandatory for Canadian financial institutions to pass on names of its U.S. account holders to the Internal Revenue Service, by way of the Canada Revenue Agency.

The changes are expected to come into full effect in…

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