Watch out! FATCA's on your doorstep, warns Toronto advisor

Watch out! FATCA's on your doorstep, warns Toronto advisor

Watch out! FATCA

In the meantime, Canada and the U.S. have yet to work out an official agreement before FATCA's July 1 implementation deadline. Once the deal is established, financial institutions will also be required to send annual reports on flagged accounts to the IRS or the Canada Revenue Agency (dependent on the agreement established), as of March 2015.
FATCA tips for banks:
  • Accounts under $50,000 will be given the green light, unless the bank knows the client has U.S. status.
  • Accounts over $50,000 will be flagged if data indicates U.S. connections.
  • Individuals believed to be U.S. citizens can be flagged.
  • Indicators for U.S. connections include: U.S. birthplace, U.S. addresses or phone numbers, an U.S. power of attorney, or standing orders to transfer funds to the U.S.
  • All identified "U.S. persons" will be required to fill out a special taxpayer identification and certification form.
  • Financial institutions or customers that don’t comply with the law could face penalties including a 30 per cent withholding tax on all U.S. source income and the sale of U.S. securities.
Related Stories:

Beware home ice advantage, urge advisors

Major player offers mea culpa

CRA cracks down on offshore accounts


read more > 1 2 3