FATCA - IGA enters into force in Canada 

July 2:  Canada’s Finance Department today announced that an intergovernmental agreement (IGA) between Canada and the United States, for the enhanced exchange of tax information, entered into force June 27, 2014.

The IGA between Canada and the United States was signed in February 2014, and follows the Model 1 IGA under the U.S. FATCA regime.

In Canada, legislation to implement the IGA, including related amendments to the Income Tax Act, was set out in Part 5 of Bill C-31, which received Royal Assent on June 19, 2014.

According to today’s Finance Canada release, the provisions of the IGA generally have effect in Canada as of July 1, 2014, and include:

  • Requirements, outlined in Annex I of the IGA, for Canadian financial institutions to institute due diligence procedures to identify accounts held by U.S. persons.
  • Reciprocal information exchanges between the Canada Revenue Agency and the IRS will begin by the end of September 2015.

Read text of the Canada-United States IGA [PDF 202 KB]

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