• Service: Tax
  • Industry: Financial Services
  • Type: Newsletters
  • Date: 9/13/2013


Gerard Laures


Tel. +352 22 51 51 5549


Frank Stoltz


Tel. +352 22 51 51 5520

FATCA e-alert Issue 2013-23 

September 2013

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


For further information, please do not hesitate to contact us.







Any tax advice in this communication is not intended or written by KPMG to be used, and cannot be used, by a client or any other person or entity for the purpose of (i) avoiding penalties that may be imposed on any taxpayer or (ii) promoting, marketing, or recommending to another party any matters addressed herein.

The information contained herein 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 on such information without appropriate professional advice after a thorough examination of the particular situation.



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