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Canadian FIs Get Guidance on Upcoming U.S. FATCA Changes 

Global Tax Adviser

 

October 31, 2013

 

Canadian financial institutions and certain other non-U.S. entities that have to comply with new U.S. withholding rules and information gathering requirements under the U.S. Foreign Account Tax Compliance Act (FATCA) may benefit from guidance on upcoming changes to the FATCA regulations that the IRS released in Notice 2013-69 on October 30, 2013.

Highlights of the IRS Notice include:

 

  • The background on the statutory and regulatory requirements for foreign financial institutions (FFIs) such as Canadian FIs to be exempt from withholding under the FATCA provisions 
  • A description of the general responsibilities of “participating FFIs” 
  • Procedures for FFIs to register for participating FFI status 
  • Intended updates to the regulations under the FATCA and withholding provisions of the U.S. Internal Revenue Code and related forms, such as: 
                                • Coordination language with current regulations (under Chapters 3, 61 and Section 3406) 
                                • Transitional reporting requirements for calendar years 2015 and 2016 accounts of non-participating foreign financial institutions (NPFFIs)
                                • Direct reporting non-financial foreign entities (NFFEs) or sponsored direct reporting NFFEs
                                • Insurance company election to be treated as a U.S. insurance company will meet the definition of U.S. person under FATCA.

The Notice also includes text of a draft FFI agreement expected to be finalized by December 31, 2013. However, Canadian financial institutions, as expected to be defined in the upcoming inter-governmental agreement (IGA) between Canada and the U.S., will not enter into an FFI agreement because it is understood that Canada will enter into a “Model I” IGA, which will not require the Canadian FIs operating under that IGA to enter into an FFI agreement. 


Notice 2013-69 is available on the IRS website.


For more information about the IRS Notice or other FATCA matters, please contact your KPMG adviser.

 

 

 

Canada FATCA Team 

Vancouver

Russell Crawford

Co-Leader, KPMG’s FATCA Services Group in Canada
Partner, Tax

604-691-3516

rwcrawford@kpmg.ca

 

Carlene Hornby

Co-Leader, KPMG’s FATCA Services Group in Canada
Partner, Tax

604-691-3097

chornby@kpmg.ca

 

Elaine Cheung

Partner, Tax

604-691-3162

elainecheung@kpmg.ca

   
Calgary

Jason Boland

Partner, Tax

403-691-8112

jboland@kpmg.ca

 

James Rowling

Partner, Tax

403-691-7947

jrowling@kpmg.ca

   
Toronto

Keno Chan

Partner, Tax

416-777-8185

kenochan@kpmg.ca

 

 

Carmela Pallotto

Partner, Tax

416-777-3618

carmelapallotto@kpmg.ca

 

Connie Lee

Senior Manager, US Tax

416-777-8397

connielee@kpmg.ca

Esther Meiersdorf

Senior Manager, US Tax

416-228-7025

emeiersdorf@kpmg.ca

   
Montréal

Bruno Desautels

Partner, Tax

514-840-2257

bdesautels@kpmg.ca

 

Shan Shan Situ

Senior Manager, Tax

514-840-2619

ssitu@kpmg.ca

 

Mariama Zhouri

Senior Manager, Advisory

514-840-2100

mzhouri@kpmg.ca

KPMG International

Laurie Hatten-Boyd

Global FATCA Tax Lead and Principal, Tax

206-213-4001

lhattenboyd@kpmg.com

Mark Naretti

Managing Director, Tax
212-872-7896

marknaretti@kpmg.com

Melinda Schmidt

Director, Tax
302-827-4985

mtschmidt@kpmg.com

 

 

 

 

 

 

 

Information is current to October 31, 2013. The information contained in this publication is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG’s National Tax Centre at 416.777.8500.

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