Bermuda - FATCA Model 2 intergovernmental agreement
Bermuda’s Ministry of Finance announced plans for adoption of the FATCA Model 2 intergovernmental agreement in August 2013.
As explained in the Finance release (PDF, 136 KB), the Model 2 intergovernmental agreement represents an intergovernmental assurance by Bermuda that the United States and the United Kingdom would receive FATCA information on an automatic basis directly from foreign financial institutions in Bermuda.
The Finance release (undated but posted 13 August 2013) also indicates that Bermuda would not hesitate to deploy its tax information exchange agreements for group requests from U.S. and UK tax authorities.
Canada - Anticipated IGA could affect FATCA registration plans
Canadian banks and certain other non-U.S. entities must comply with new withholding rules and information gathering requirements that take effect 30 June 2014 under the U.S. Foreign Account Tax Compliance Act (FATCA). The FATCA rules include registering as participating foreign financial institutions, among other items.
Although the IRS recently opened a FATCA registration website, Canadian financial institutions (Canadian FIs) may want to wait to do their FATCA registration until an expected Canada-United States intergovernmental agreement (IGA) is released.
Read an August 2013 report prepared by the KPMG member firm in Canada: FATCA Registration — Canadian FIs Should Stand Pat
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