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FATCA postponement?

boosterbglee

By boosterbglee,
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coorslite21 Grand Master

coorslite21

Posted
Posted

Good news really.......FATCA is very oppressive and would/will be the demise of the USD....effective....immediately......a little more about this......

This is more about how it affects US citizens on a daily basis. FATCA really isn't all, and only, about, "offshore" accounts !

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I wrote earlier......a compilation of many articles......

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What is the worst law that most Americans have never even heard of?

There are plenty to be sure. So many mundane activities are now criminalized that the average American unknowingly commits three felonies a day. But in this case, I am referring to FATCA, which most Americans have never heard of.

In case you are not familiar with FATCA, it is a US law that forces every foreign financial institution in the world to provide the IRS with information on their American clients. It is hugely burdensome and costly to comply with. It has had the effect of making the vast majority of foreign banks, brokerages, and other financial institutions shun American clients, effectively making it much more difficult to move capital outside of the US. Taken together with other costly extra-territorial US regulations, FATCA amounts to a sort of de facto capital control for American citizens.

Anyway, the reason I am bringing up FATCA is that it helps to reveal something important.

History has shown that the destructive measures a government usually takes follows a certain order of progression as it becomes more desperate. The steps are detailed in the desperate government countdown below. FATCA helps reveal how far along the US is at the moment.

The purpose here is to simply understand the general pattern that nations follow as their fiscal situations deteriorate… and see what pragmatic steps we can take to protect ourselves.

1. Fiscal health of the country is clearly in trouble. This is where it is apparent that, even by the government's own phony official statistics, the country is in serious trouble. However the masses are still distracted with "bread and circuses" and are told that everything is fine. Remember the so-called "green shoots" of economic recovery the mainstream media was hyping a couple of years ago?

2. Increasing regulations, inflation, taxes, and police state measures. The sheer amount of current and future US government spending, coupled with the fact that there is no political will to make any meaningful cuts, means that higher inflation and taxes are pretty much a mathematical certainty.

Thanks to a veritable mountain of rules, laws, and regulations, the government can already essentially track and control every penny you earn, save, and spend. The noose continues to get tighter with several states already proposing the registering and tracking of precious metals transactions. And as the Snowden revelations have shown, it would be dangerously foolish to think there is any sort of privacy from the all-encompassing Orwellian surveillance state.

3. Capital controls. IM contributor Jeff Thomas says that "If the sheep are to be sheared, they must first be penned in so that they cannot escape." This is exactly the point of capital controls. To lock in the wealth of a country so it cannot escape the shearing that is soon to come. Internationalizing your savings with offshore banking and storing your physical gold in a safe jurisdiction, such as Singapore, are a couple of ways to ensure that you won't get penned in with capital controls.

4. Broad wealth confiscation measures. These are wide-ranging and are usually taken after capital controls have been imposed to prevent wealth from fleeing the slaughter. No matter the method, the net effect is always the same: The government grabs as much capital as it can get away with. This can include an official currency devaluation, measures against precious metals (windfall profits tax, confiscation, nationalization), and so-called haircuts of wealth held in electronic form like bank and brokerage accounts. The best way to protect yourself here is to internationalize your savings into something that is not easily confiscated, such as physical gold held offshore and foreign real estate.

5. Nationalization of retirement savings. It's no secret that a very juicy target for a desperate government is retirement savings. Here the government converts the assets of a retirement account into so-called "safer" government bonds. As with most government measures, it is sold as something that is "for your own good." Already we are hearing whispers from the US government about helping to "manage" retirement savings. This is code for converting retirement investments into US treasuries. You can protect against this by moving your IRA investments offshore and outside the immediate reach of your home government.

6. Price and wage controls. Having a foreign source of cash inflows and setting up an offshore company are good ways to protect yourself and your business against destructive edicts on the prices of goods, services, and labor. It doesn't take a genius to see that price controls cause shortages—usually in food, energy, and basic necessities. Having a bolt-hole in a relatively sustainable locale helps to mitigate this risk.

7. People controls. Another tool in the desperate government's toolkit is putting restrictions on the movement of its citizens. This is especially true for citizens who have accumulated wealth. Obtaining a second citizenship or legal residency in a foreign country ensures that you will always have another place to potentially call home without having to live like a refugee.

8. Wars to distract the populace. When all else fails, history has shown desperate governments have a tendency to start conflicts to bolster blind nationalism and distract the populace from their failings. All governments treat their citizens like milk cows to varying degrees, but they start treating them like beef cows when they need soldiers for their contrived wars. Again, having a second citizenship or a foreign residency and a bolt-hole far away from the front lines are useful here.

9. Game over. Failed wars usually provide fertile soil for severe civil unrest, revolution, and the potential emergence of a strongman at the helm.

The good news for Americans is that there is still time to take steps to internationalize. (and now until January 2015 for sure)

I mentioned earlier that FATCA helps reveal what stage the US is currently at. While the US clearly is at stage #2, it is not quite to stage #3, capital controls. That said, FATCA and other regulations amount to a type of de facto capital controls, so in my humble view, I would rate the US somewhere between #2 and #3.

While there is still an opportunity for you to avoid getting boxed in by a desperate and out-of-control government, nobody knows exactly how much time is left. And once official capital controls are implemented (#3), your wealth is trapped and things tend to unravel pretty quickly.

Developing your internationalization game plan does not mean you have to leave your home country. It is possible to achieve a certain level of international diversification without needing to leave your living room, for example, by opening a foreign bank or brokerage account remotely.

The idea is to create your own personal insurance policy to immunize yourself from the common destructive measures of a desperate government. This is absolutely crucial given the state of the world we live in today. Spreading your political risk beyond one single jurisdiction is the single most important thing you should consider.

Those familiar with the US Foreign Account Tax Compliance Act (FATCA)—and in the United States, that's not many people—think of it as either a sledgehammer attempt to curb offshore tax evasion or (more accurately) as a costly, counterproductive, and indiscriminate burden on the global economic system; a compliance nightmare that only benefits tax lawyers, accountants, and software firms; a job-killing disincentive for foreign investment in the United States; a crude overreach in violation of every principle of sovereign legality; an abuse of the US Senate's constitutional treaty authority; a blatant violation of WTO and other trade commitments; and a financial "drone strike" against Americans living abroad.

FATCA is all that and much, much more. But in light of sweeping revelations about the email, telephone, and internet surveillance activities of the US National Security Agency (NSA), it's time to take a look at FATCA's implications for personal electronic privacy and the growing power of the US intelligence agencies' global surveillance state.

Just Hand Over the Information—or Else

FATCA is a US law enacted in 2010 that, beginning in July 2014, would require all foreign (i.e., non-American) financial firms (not just banks but also credit unions, insurance companies, pension funds, stock and investment funds, etc.) to report the accounts of "US Persons" defined so broadly as to include many citizens of other countries, for example perhaps a million Canadian citizens.

How does the US government get jurisdiction to do this? Well, it has no jurisdiction and doesn't claim any. If any of the hundreds of thousands of foreign financial institutions (FFIs) anywhere in the world, whether it does business in the US or not, fails to demonstrate to the US Treasury Department's satisfaction that it has due diligence in place to gather the demanded account information and agrees to hand it over to the IRS in a manner dictated by that agency in 544 pages of mind-numbing regulations, it will be hit with a 30% deduction on any US-sourced revenues, including "pass-thru" payments. (How this would be enforced is any ones guess?)

In view of the US role in the global financial system, many if not most FFIs are recipients, at least indirectly, of revenues that can be intercepted by US financial institutions forced to act as withholding agents on the Treasury's behalf. This would amount to confiscation of the FFIs' legitimate assets for being "recalcitrant" under a foreign law that they are under no legal (much less moral) obligation to obey, and which in most countries they can't obey without violating local human rights, data security, and other protection laws.

Thus, FATCA has no legal claim to its breathtaking demand for worldwide submission. Its only claim of authority is the Treasury Department's threat to inflict pain on foreign entities not otherwise subject to US law. In other words: might makes right.

There is much more to it of course, including the fact that even FATCA advocates admit the law is "wholly unachievable" as written and can only be implemented by foreign governments' knuckling under to the threat of economic sanctions and agreeing to sign so-called intergovernmental agreements (IGAs) to act as the IRS's enforcers against their own institutions and citizens under false promises of reciprocity. And it is well established that FATCA would yield at best a meager "recovery" of revenues hidden offshore—less than $1 billion per year (enough to fund the US federal government for about two hours) while inflicting compliance costs worldwide of $1 to 2 trillion. It is increasingly clear that FATCA is cruising towards a catastrophic collision with reality.

Since FATCA doesn't pass the laugh test as an effective tax enforcement tool, one then has to wonder if it serves some other purpose. Why would the US government (or at least some elements of the US government) be so insistent on gathering vast amounts of personal financial data from foreign institutions, without any suspicion of wrongdoing by either the vast majority of account holders or by the institutions themselves?

FATCA-Compliant Banks Would Have No Privacy Expectation from US Security Agencies

If FATCA's sole purpose were to recover tax revenues from assets squirreled away offshore by American fat cats, it seems odd that it targets only individuals and specifically exempts reporting on accounts held by US corporations. On the other hand, targeting individuals makes a lot of sense if FATCA's purpose is directed towards something else: adding to US government agencies' global electronic map of personal information. Americans and the rest of the world are increasingly aware of the vanishing concept of personal privacy, whether supposedly justified by the needs of law enforcement, anti-terrorism, or (as here) recovering tax revenues.

It should be further understood that any data transmitted by foreign financial institutions will not be confined to the IRS but will be handed over (upon request, of course) to other three-letter agencies of the US government. The following is from a 2012 letter from Sen. Carl Levin (D-Michigan), a prominent FATCA supporter, to then-IRS Commissioner Douglas H. Shulman:

Although FATCA is structured to address offshore tax abuse, offshore account information has significance far beyond the tax context, affecting cases involving money laundering, drug trafficking, terrorist financing, acts of corruption, financial fraud, and many other legal violations and crimes. Given the importance of offshore account disclosures, FATCA guidance and implementing rule should create account FATCA forms that are not designated as tax return information but, like FBARs, may be provided to law enforcement, regulatory, and national security communities upon request. FFIs are not, after all, US taxpayers, and will not be supplying tax information on behalf of their US clients; they will instead be providing information about accounts opened by US persons. The US Supreme Court has long held that bank account information is not inherently confidential but is subject to inspection by law enforcement and others in appropriate circumstances. Foreign account information is too important to a wide range of civil and criminal law enforcement and national security efforts to be designated as tax return information bound by Section 6103's severe restrictions on access [emphasis added].

This requires some explanation. Section 6103 refers to United States Code Chapter 26, Section 6103, which according to the Justice Department "generally prohibits the disclosure of 'tax returns' and other 'tax return information'" outside the IRS, unless certain narrow exceptions apply, mainly with respect to specific criminal cases. Here, Senator Levin is saying—correctly, as far as US law goes—that when FFIs sign on to the IRS portal for transmitting data demanded under FATCA, any information received can (and I would say, will) be passed on to other government agencies, including national security (i.e., intelligence) agencies, such as the NSA, the Central Security Service, and the US Cyber Command among others. Not only the US Persons whose account information is forwarded but also the institutions themselves have no expectation of privacy or confidentiality. ("FFIs are not, after all, US taxpayers," and "bank account information is not inherently confidential.")

Having established that (a) information received under FATCA may be passed on to these other agencies, ( B) there is no legal expectation of privacy or confidentiality, or any limitation on use of any information gathered, and © institutions would be required to log onto a portal created and operated by the US government, it is fair to ask, given growing concerns about covert information-gathering by the NSA, whether the motives behind FATCA are limited to tax enforcement and what further use will be made of information supplied to the IRS.

So, Why Would Intel Agencies Want Personal Information from Banks?

If information itself, not tax enforcement, is the real underlying value of FATCA for US government agencies, this might also help explain exemption of corporations. Perhaps the law's authors figured that corporations, unlike individuals, might have the means to fight back and risk upsetting the whole applecart. Or perhaps personal information is more useful for intelligence purposes. Either way, targeting individuals' private data appears to be the most plausible reason to impose a mandate that FFIs—including many thousands worldwide that don't do business in the United States and may not be as readily accessible to US agencies as domestic firms—log onto a government-controlled site.

How Might FATCA Compliance by FFIs Facilitate Intelligence Collection?

First, the FATCA data itself, matched with other information available to the relevant agencies, would greatly enhance creation of a global financial social accounting matrix, using US Persons' account information as a kind of marker or human "taggant" for mapping contacts, relationships, and activities of a wide range of persons and institutions well beyond the US Persons themselves. While email, phone records, blog postings, social media ramblings, and other personal data are valuable for the surveillance state, one could argue that capture of personal financial information is a far more valuable payload for intelligence monitoring and management. FATCA data would be an invaluable supplement to intelligence agencies' existing efforts to monitor international finances. (See: "'Follow the Money': NSA Spies on International Payments," Der Spiegel, September 15, 2013.)

Second, and more ominously, it needs to be asked what additional types of information-gathering on FFI targets other than US Persons may be facilitated by metadata and other transfers incidental to automatic electronic data transmission. There is no reason to suppose the technical capabilities of US agencies would be thwarted by metadata-scrubbing, encryption, or other safeguards FFIs might place on data transfer, whether incidental or anticipated.

Certainly, from a purely technical point of view, it seems the NSA and other intelligence agencies already are doing fine on their own. But consider how much easier it would be to steal keys, crack encryption, or install a worm, a Trojan horse program, or other malware via a drive-by download to provide backdoor access to all the data in a target network when it's unnecessary to phish the target in.

Instead, they can just require the target institution (under threat of FATCA sanctions) to log in at the Black Gate of Mordor and take it from there. As an extra bonus, instead of having to pay for costs incurred by the target firms, as the NSA did for US firms involved in the Prism program, the FFIs themselves would have to bear the costs of providing possible access for US agencies to acquire data even beyond that demanded under FATCA.

Some might consider the suggestion that US agencies would abuse FATCA compliance for intelligence collection purposes speculative, or even offensive. But then one wonders what would be the impediment to such abuse. Technical? Political? Moral? Legal? Given almost daily revelations of what the same agencies already have been doing, it's hard to take such objections seriously. (And if anyone thinks Treasury and the IRS are not already integral elements of the broader spying program, see: Jennifer Stisa Granick and Christopher Jon Sprigman, "NSA, DEA, IRS Lie About Fact That Americans Are Routinely Spied On By Our Government: Time For A Special Prosecutor," Forbes, 8/14/2013.)

This site is operated by the United States Internal Revenue Service (IRS). Foreign financial institutions are on notice that any information made available to the IRS as a result of logging onto this site may be passed on to other agencies of the government of the United States and that use of such information may not be exclusively for tax purposes.

It's Time to Think of Financial Information as Personal Information

Thus far, media coverage of FATCA has been almost entirely relegated to the finance and tax pages, mainly outside the United States, much of it dominated by compliance-mongers drumming up business. Even FATCA's toxic economic impacts and the Treasury Department's grossly exceeding its legal authority have drawn little notice, especially in US domestic reporting.

Still less attention has been given to what may be the real story of FATCA as a critical, but thus far almost completely ignored, piece of the growing machinery of global surveillance. After all, FATCA is only about offshore tax evasion and has nothing to do with personal privacy, right?

Wrong. First, an individual's financial information is personal information. In terms of intrusive agencies' monitoring of—and perhaps soon, controlling—the lives of people who used to consider themselves free and independent citizens of their respective countries, financial information is far more significant in content than most of the fluff and narcissism on Internet forums, social blogs, wikis, social networks (some with facial recognition capabilities), podcasts, and other electronic content we've gotten used to thinking of as defining "personal":

Financial privacy isn't typically considered as sexy as other forms of privacy, like our right to private beliefs, health care, property, and communications. Infringement of financial privacy doesn't evoke the kind of outrage as other violations, because most overlook the vital role it plays in preserving human rights and protecting individuals from governmental abuse. Without financial privacy, for instance, law-abiding citizens around the world would be in danger of having all of their financial information shared with corrupt governments or criminal organizations, potentially exposing them to extortion, blackmail, or even kidnapping.

Just as supporters of the police and surveillance state argue that individuals with nothing to hide should be willing to forfeit their right to privacy, those obsessed with collecting taxes think that the vast majority of Americans who do not engage in evasion should be willing to relinquish their financial privacy rights. Recent scandals have exposed these claims as naïve and dangerous. Innocent Americans must zealously guard their privacy against government intrusion and reject invasive laws like FATCA passed under the false pretense of catching criminals. [Andrew F. Quinlan, President, Center for Freedom and Prosperity, "FATCA: The end of financial privacy," The Daily Caller, September 12, 2013.]

Second, the sheer scope of the data haul that can be accessed if foreign financial firms' data – potentially, all of it – is compromised through FATCA compliance could make the revelations to date about NSA's snooping pale to insignificance. Already, we've seen the willingness of the NSA to require American domestic firms to hand over what their customers thought were private communications, to insert vulnerabilities into commercial encryption systems, and otherwise to flout the rule of law. Such lawlessness achieves a whole new dimension of menace when firms, literally anywhere on the planet can be forced by the one-and-only global sovereign to submit to the same treatment—with their own governments meekly cooperating even as they denounce the latest reports about theNSA.

FATCA looks to have all the world banking systems report to the US......or face a 30% penalty........

the world is saying......"screw you"....USA....you no longer have control of us......and so the US has decided to defer.......until a later date........the USD is toast IMHO........and, so are the proposed FATCA laws.....

Please look into the off shore opportunities available to you at this time......Adam offers an excellent educational opportunity on what you can do to protect your assets..........via the OSI program..........and, this is only the ground floor.....so much to learn......study it all and make wise decisions for your future....,.

Hope this gives you all a better understanding of what FATCA really is.......JMO........CL21

PS.......study Capital Controls....these are designed to take our basic freedoms from us............

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Djorgie Newbie

Djorgie

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The FACT is that no matter how far they postpone FATCA (if they indeed do) that the U.S. dollar is taking a swan dive off of the high platform into an empty pool and it is not a matter of IF it will hit bottom it is sadly for us a matter of when.

 

 

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Nelg Newbie

Nelg

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Thanks.  This is some very clear, yet disturbing, information.  It underscores the need for proper financial planning for the future.  It doesn't matter if one is a currency speculator or not; plans are essential.  

 

Thanks to Adam, some of those plans are being put together to assist us in protecting our wealth.  

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Francie26 Newbie

Francie26

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I am stunned by the broad sweep the Democrats are making with this outrageous law, trying to grab Americans' funds, no matter where or how much or little. The fact is that Obama and the Dems have destroyed so much of what America was and have set our once-free country on course to be a failing nation, and now they want to grab all they can from American accounts in other countries. This simply shows that they are out for control over us, to own us, who once were free. It isn't just the money, but the fact that they can literally "own" us that is scary. Obama and the Dems in the Senate and Congress behave as though they own us.  Who among us would want to have to report every facet of our lives to that hateful, outrageous Senator Levin? And possibly even worse, to that vicious, sniveling Harry Reid?  Aware that being free is a state of mind, as well as a fact, I simply no longer feel like a free American.  There's something horribly wrong here. They who have caused this problem by spending money far beyond America's means are now trying to control Americans who were wise enough to put their money out of the reach of these politicians who have already ruined our once-great country.

 

How do I get a second citizenship? I'm sure someone here knows how its done. I am a Platinum member, and just received my corporation documents, so I won't be doing much business as a private citizen, but I don't think it is a bad idea to have a second citizenship . . . just in case. . . . 

Edited by Francie26
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Goldiegirl Newbie

Goldiegirl

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Posted

http://www.fin.gc.ca/n14/14-018-eng.asp

 

CRA is Canada Revenue Agency which is the same as your IRS.  Looks like it's going to work both ways the IRS will feed back to the CRA any US accounts that are held by Canadians in US banks.

Canada and U.S. Reach Agreement on Foreign Account Tax Compliance Act

February 5, 2014 – Ottawa, Ontario – Department of Finance

Finance Minister Jim Flaherty and National Revenue Minister Kerry-Lynne D. Findlay today announced that, after lengthy negotiations, Canada and the United States have signed an intergovernmental agreement under the longstanding Canada-U.S. Tax Convention.

In March 2010, the U.S. enacted the Foreign Account Tax Compliance Act (FATCA). FATCA would require non-U.S. financial institutions to report to the U.S. Internal Revenue Service (IRS) accounts held by U.S. taxpayers. Failure to comply with FATCA could subject a financial institution or its account holders to certain sanctions including special U.S. withholding taxes on payments to them from the U.S.

FATCA has raised a number of concerns in Canada—among both dual Canada-U.S. citizens and Canadian financial institutions. One key concern was that the reporting obligations in respect of accounts in Canada would compel Canadian financial institutions to report information on account holders who are U.S. residents and U.S. citizens (including U.S. citizens who are residents or citizens of Canada) directly to the IRS, thus potentially violating Canadian privacy laws.

Without an agreement in place, obligations to comply with FATCA would have been unilaterally and automatically imposed on Canadian financial institutions and their clients as of July 1, 2014.

Today’s agreement addresses these concerns, as well as others.

finbullet.pngQuick Facts
  • Under the agreement, financial institutions in Canada will not report any information directly to the IRS. Rather, relevant information on accounts held by U.S. residents and U.S. citizens (including U.S. citizens who are residents or citizens of Canada) will be reported to the Canada Revenue Agency (CRA). The CRA will then exchange the information with the IRS through the existing provisions and safeguards of the Canada-U.S. Tax Convention. This is consistent with Canada's privacy laws.
  • The IRS will provide the CRA with enhanced and increased information on certain accounts of Canadian residents held at U.S. financial institutions.
  • Significant exemptions and relief have been obtained. For instance, certain accounts are exempt from FATCA and will not be reportable. These include Registered Retirement Savings Plans, Registered Retirement Income Funds, Registered Disability Savings Plans, Tax-Free Savings Accounts, and others. In addition, smaller deposit-taking institutions, such as credit unions, with assets of less than $175 million will be exempt.
  • The 30 percent FATCA withholding tax will not apply to clients of Canadian financial institutions, and can apply to a Canadian financial institution only if the financial institution is in significant and long-term non-compliance with its obligations under the agreement. 
  • The agreement is consistent with Canada’s support for recent G-8 and G-20 commitments intended to fight tax evasion globally and to improve tax fairness. In September 2013, G-20 Leaders committed to automatic exchange of tax information as the new global standard and endorsed a proposal by the Organisation for Economic Co-operation and Development to develop a global model for the automatic exchange of tax information. They also signaled an intention to begin exchanging information automatically on tax matters among G-20 members by the end of 2015.
  • Draft legislation to implement the agreement will be released for comment shortly on the Department of Finance website.

***********************************************************************************************************************************************************************************************************************************

Leaked documents show Canada ‘intended’ departure from FATCA agreement with U.S.

http://business.financialpost.com/2014/03/26/leaked-documents-show-canada-intended-departure-from-fatca-agreement-with-u-s/

 

 

Leaked documents suggest that the federal government and the Canada Revenue Agency have deliberately undermined an intergovernmental agreement with the U.S. aimed at catching American tax evaders living in Canada.

Earlier this week, the Isaac Brock Society leaked the CRA’s Guidance Notes to the draft legislation implementing the IGA, which is aimed at relieving Canadian financial institutions from onerous obligations under the U.S. Foreign Account Tax Compliance Act.

According to Roy Berg, Director, U.S. Tax Law at Calgary’s Moodys Gartner Tax Law, the Guidance Notes reveal that Finance and CRA “intended to drastically depart” from key definitions found in the IGA and FATCA, and that CRA’s interpretation of the draft legislation is “significantly different” from OECD guidance on the same subject.

“CRA appears to be playing cute with the IGA and FATCA,” Berg says.

By way of example, Berg points to the requirements that the IGA and FATCA impose on financial institutions if an account holder has an “unambiguous place of birth” in the US. CRA’s guidance suggests, somewhat disingenuously, that a place of birth is unambiguous if an account holder lists it as “New York, New York, USA” but not if the indication is merely “New York, New York.” The upshot, of course, is that Canadian financial institutions will be able to avoid reporting US account holders on what seems to be even less than a technicality.

Interestingly, two key Canadian officials are currently unavailable for comment. Blair Hammond, CRA’s Trade Policy Officer and the principle draughtsman of the Guidance Notes is, according to his e-mail account, out of the office until the beginning of April. In fairness, it should be pointed out that CRA usually deals with the media through designated spokesperson, which Hammond is not.

Also unavailable until April, however, is Kevin Shoom, Senior Chief, International Taxation and Special Projects at the Department of Finance, and the principle draughtsman of the draft legislation.

As we reported earlier, tax lawyers say that the draft legislation does not accord with the IGA signed between Canada and the U.S. earlier this month. So much so, Berg adds, that the legislation in its current form could “eviscerate” the IGA.

“The U.S. Treasury Department may view the legislation, if passed in its current form, as an invalid implementation of the IGA and may therefore not afford Canadian financial institutions the benefit of the Agreement,” Berg told Legal Post.

FATCA is intended to combat offshore tax evasion. The legislation generally requires foreign financial institutions to report the financial activities of their American clients to the Internal Revenue Service and withhold funds in appropriate circumstances. The IGA allows Canadian institutions to report to the Canada Revenue Agency instead. This aligns the reporting obligations of financial institutions under U.S. and Canadian law.

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Goldiegirl Newbie

Goldiegirl

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Posted

Francie, your question can be answered in OSI. There are many posts (some of them pinned I believe) and information on that subject. Even some that I have posted myself.

 

Happy reading. and oh let me know if you want me to find a nice Canadian man to marry you. :D  I might be able to start up a nice little business for myself here with all my American friends. :P

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