The Foreign Account Tax Compliance Act was signed into United States law in March 2010 as a way to prevent American taxpayers from using financial accounts outside of the U.S. to evade taxes.
As of July 1, 2014, as a result of an intergovernmental agreement between Canada and the U.S., financial institutions must ensure that when accounts are opened by new clients, information needed to identify reportable accounts is received. In addition, financial institutions will need to identify accounts that were open on June 30, 2014, and that must be treated as reportable accounts.
The requirement to report applies to accounts held by "U.S. Persons" (as defined by U.S. tax law) and certain entities in which one U.S. Person or more has a controlling interest * Under U.S. tax law, you are considered a U.S. Person if you are:
- A citizen of the U.S. (including an individual born in the U.S. but living in another country without renouncing U.S. citizenship)
- A lawful resident of the U.S. (including a U.S. green card holder)
- A person residing in the U.S.
- A U.S. corporation, estate, or trust
You also may be considered a U.S. Person for tax purposes if you spend a considerable amount of time in the U.S. annually. The IRS provides information on the rules applicable to non-U.S. citizens here:
irs.gov/individuals/international-taxpayers/alien-taxation-certain-essential-concepts
If you're unsure about your U.S. tax status, or about how Canadian Tax Regulations related to FATCA might affect you, contact your tax advisor. If our records show that you might be affected by these regulations, we will contact you and will work with you to ensure that the situation is handled correctly. If you are a U.S. Person, we can look at your Accounts with you and let you know which, if any, may be reportable.
Further information on the intergovernmental agreement between Canada and the U.S. can be found on the CRA website.
