• Service: Tax, International Tax
  • Type: Regulatory update
  • Date: 4/4/2014

Canada - IGA legislation and FATCA concerns for trusts 

April 4:  Canadian trusts that will be treated as “foreign financial institutions” under the U.S. Foreign Account Tax Compliance Act (FATCA) will want to closely follow legislative developments now that the Canadian government has tabled legislation implementing the intergovernmental agreement (IGA) in Canada.

The legislation, which prescribes (1) the entities that will be subject to FATCA, (2) the due diligence and reporting required in respect of their financial accounts, and (3) the applicable penalties for non-compliance, continues to exclude certain Canadian trusts from the definition of “Canadian financial institutions” even when such trusts are subject to FATCA under the U.S. regulations.

Read an April 2014 report [PDF 57 KB] prepared by the KPMG member firm in Canada: Canada’s IGA Legislation Causes FATCA Concern for Some Trusts

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