When FATCA was originally announced, the extent of its application was unclear for many funds. Since then, certain governments have signed Intergovernmental Agreements (IGAs) with the IRS, and more are due to enter into agreements. Where countries like Canada sign up to a ‘Model 1 agreement’, they agree to bring in domestic law to implement the IGA. With the conclusion of the US/Canada IGA and publication of draft legislation on February 5, the application of FATCA to Canadian entities is now more clear. Broadly, all funds controlled and managed in Canada will be mandated to comply regardless of their investment or investor base.
Please speak to your KPMG contact or one of our FATCA advisors for further information or advice in respect of the legislation and the impact for you.