FATCA for USCs resident in Canada...

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stewak2
Posts: 109
Joined: Mon Sep 18, 2006 2:47 pm

FATCA for USCs resident in Canada...

Post by stewak2 »

Canadian government is supposedly in final stages of negotiating agreement with US such that Canadian financial institutions will be required to collect US citizenship information on their customers, supply it to CCRA, who will supply it to IRS, in support of the FATCA act.
Since we already have to report these accounts on FBAR, there really isn't a disclosure issue, but my concern is my bank may not want me as a customer if they discover I am a USC, or they may charge me exorbitant extra fees.
I have a significant RRSP in Canada.
Non disclosure ( to the bank/CCRA ) of citizenship status might be an option but then at some point the US Treasury or IRS will match up my FBAR to the master list that CCRA supplies them...and someone will be in trouble.
Not, likely, me, since I report my accounts on FBAR but I suspect at that point I would have a big problem with my bank.
What are other USCs in Canada planning to do about this issue?
Taxpoor
Posts: 110
Joined: Thu Oct 11, 2012 9:14 am
Location: Canada

Post by Taxpoor »

You should check out the Issac Brock Society for updates and information on FATCA. IBS just finished a FATCA fact finding forum with some interesting higher ups..there is a youtube presentation of the same.

You probably already are aware it is delayed until 2014 (?)..

A lot of individuals, including myself, have decided to relinquish there US citizesnship in order to avoid this tax treaty override called FATCA.

In this case, if the Canadian government signs an IGA, you would most likely have to produce a certificate of loss nationality in order to exempt you from this reporting.
maz57
Posts: 7
Joined: Mon Nov 19, 2012 1:49 pm

Post by maz57 »

Yeah, I relinquished also. If my bank ever asks I'll reply that I'm a Canadian. Period. End of discussion. Birthplace? None of their business. I doubt they'll ever ask.
eortlund
Posts: 272
Joined: Tue Aug 07, 2007 12:18 pm

Post by eortlund »

I bank at RBC, and my financial advisor there has told me they will be complying with FATCA so I hope we have no problems. Also, my understanding is that you have to have a certain amount of assets before it applies? Will banks have to report people with $5000 in a savings account and $30,000 in an RRSP?
eortlund
Posts: 272
Joined: Tue Aug 07, 2007 12:18 pm

Post by eortlund »

Oh, sorry, I see you have a significant RRSP. I hope it causes no trouble for you at all.
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