Tag Archives: FATCA IGA

Canadian citizens of US origin have some hard thinking to do – Canada agrees to #FATCA

(It’s essential that people read Annex 1 starting at page 19 of Canada FATCA IGA – particularly the rules on pre-existing accounts and the possibility of NOT needing a CLN. Feel free to post your comments on these issues.)
The big, but NOT good news is …
It’s official. Canada has agreed to U.S. demands to turn the information of Canadian taxpayers over to the IRS. Canada has agreed to do the bidding of the U.S. Treasury and provide the banking information of any Canadian account holder to the IRS. The actual FATCA agreement is here. Note that the agreement specifically gives the U.S. the right to define “U.S. person”. The “FATCA Roundup” will begin by targeting the information of Canadians of U.S. origin. Look for the definition of “U.S. person” to expand over time.
The FATCA  IGA agreement is long and comprehensive. A thread to read and share comments is at the Isaac Brock Society.
This makes the problem of U.S. citizenship-based taxation even more urgent. In my submission to the NZ Senate Finance Committee I detailed how FATCA is certain to:
1. Transfer the wealth of a “FATCA Participating Nation” to the United States; and
2. Erode the political sovereignty of those same nations.
Here, for your reading pleasure is the official announcement:
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Submission to New Zealand Finance and Expenditure Committee – #FATCA

On February 4, 2014 I sent a submission to the New Zealand Finance and Expenditure Committee on the “Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Bill”.  This bill  is understood to be in part, the enabling legislation for a FATCA IGA between New Zealand and the United States. Commentary on “FATCA consciousness” (or rather lack of it) in New Zealand is available on a “FATCA Centric blog”  here  (see the comments for additional submissions) and here.

After sending my submission I was notified of the following opportunity:

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