Foreign Account Tax Compliance Act
The Foreign Account Tax Compliance Act (FATCA) became law in the U.S in March of 2010. The intent of the law is to prevent U.S. taxpayers from holding funds in accounts outside of the U.S. in order to avoid paying taxes.
Earlier this year, Canada and the United States signed an intergovernmental agreement (IGA) related to FATCA. As a result of that agreement, Canada has passed laws requiring financial institutions to report annually to the Canada Revenue Agency (CRA) on reportable accounts held in Canada by U.S. persons. The CRA will share this information with the IRS under the provisions and safeguards of the Canada-U.S. Tax Convention.
How does this affect FirstOntario Members?
FirstOntario will continue to keep Members' personal information confidential, secure and accurate. In abiding with the Canadian tax regulations related to FATCA, we will also continue to maintain our standard of strict compliance with Canadian privacy laws.
We expect that FATCA will not impact most of our Members.
When does this come into effect?
The Canadian tax regulation that relates to FATCA will come into effect in stages, beginning on July 1, 2014.
More information is available on the following sites: