Global

Details

  • Service: Tax, Global Compliance Management Services, International Tax
  • Type: Regulatory update
  • Date: 2/5/2014

Canada - FATCA agreement with United States 

February 5: Canadian entities that will be treated as “foreign financial institutions” must now consider their potential requirement to register with the U.S. Internal Revenue Service (IRS) under the U.S. Foreign Account Tax Compliance Act (FATCA), now that an intergovernmental agreement (IGA) between Canada and the United States was signed today.

Not only Canadian financial institutions, but certain other non-U.S. entities, must comply with new information gathering and reporting requirements that generally take effect 1 July 2014 under FATCA. These rules include registering as participating foreign financial institutions with the IRS, among other things.


Canada’s Department of Finance released a 42-page package of draft legislation to implement the agreement. This legislation provides further guidance to Canadian entities on how to implement the IGA, including timelines and penalties for non-compliance. The closing date for comments to Finance is 10 March 2014.


Read a February 2014 report prepared by the KPMG member firm in Canada: Canada Signs FATCA Agreement with U.S.




©2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved.


The KPMG logo and name are trademarks of KPMG International.


KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever.


The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor 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 on such information without appropriate professional advice after a thorough examination of the particular situation.


Direct comments, including requests for subscriptions, to us-kpmgwnt@kpmg.com.
For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at:

+ 1 202 533 4366

1801 K Street NW
Washington, DC 20006.

 

Share this

Share this

Subscribe

Subscribe to receive the latest TaxNewsFlash email alerts (you must select the option for TaxNewsFlash)


Already a Subscriber? Login


Not a member? Subscribe now