Global

Details

  • Service: Tax, International Executive Services, Global Compliance Management Services, International Tax
  • Type: Regulatory update
  • Date: 6/24/2014

Canada - Reminder for Canadian entities to prepare for FATCA 

June 24:  Canadian entities that could be subject to the U.S. Foreign Account Tax Compliance Act (FATCA) provisions need to be certain they are ready for these new rules now that the Canadian government on 19 June 2014 passed legislation to implement an intergovernmental agreement (IGA) with the United States.

The IGA is intended to streamline compliance with the information gathering and reporting requirements under FATCA, which generally is effective 1 July 2014.


Under the IGA, Canadian financial institutions must report to Canada Revenue Agency (CRA)—and not the IRS.


In addition, certain pension plans and registered accounts are exempt from FATCA due diligence and reporting, including:


  • Registered Retirement Savings Plans (RRSPs)
  • Registered Retirement Income Funds (RRIFs)
  • Registered Pension Plans (RPPs)
  • Tax-Free Savings Accounts (TFSAs)

Read a June 2014 report prepared by the KPMG member firm in Canada: FATCA Now Law - Are You Ready for July 1, 2014?




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