Friday, October 31st10.1°C
23696
23883

Canada signs tax deal with U.S., allows CRA to collect info about U.S. residents

OTTAWA - The federal government says it has signed a deal with the United States over a new American law aimed at rooting out tax cheats north of the border.

The Foreign Account Tax Compliance Act, which takes effect in July, would compel Canadian financial institutions to report information about anyone considered to be a U.S. resident or citizen — including dual citizens — directly to the American Internal Revenue Service.

Senior Canadian government officials say the deal signed today allows the Canada Revenue Agency to collect certain information from banks and share it with the U.S. under existing tax treaty rules.

They say it makes Canada responsible for collecting information from its own taxpayers, avoiding privacy and other concerns raised by financial institutions.

The deal narrows the scope of information that banks would be required to collect and avoids the U.S. imposing a withholding tax to enforce the law.

Officials say the deal exempts most federal registered accounts, such as registered retirement savings plans, pension plans and tax-free savings accounts.

Although financial institutions will have to start collecting the information in July, officials say the CRA isn't expected to start sharing the information with the IRS until 2015.

Canadian bankers had previously said that such an arrangement would be an improvement over what the U.S. initially wanted, but it's not ideal.

They say current Canadian law does not require banks to ask clients whether they are also U.S. citizens, and changing bank procedures could cost tens of millions of dollars in administrative fees.

The Canadian Press


Read more Business News




Recent Trending




Today's Market
S&P TSX14613.32+154.63
S&P CDNX769.59-2.06
DJIA17390.52195.10
Nasdaq4630.742+64.604
S&P 5002018.05+23.40
CDN Dollar0.8876-0.0058
Gold1166.30-32.2999
Oil80.55-0.35
Lumber325.70+2.10
Natural Gas3.715+0.066

 
Okanagan Companies
Pacific Safety0.125+0.015
Knighthawk0.01-0.005
QHR Technologies Inc1.18+0.03
Cantex0.045-0.015
Anavex Life Sciences0.185+0.0139
Metalex Ventures0.03-0.005
Russel Metals32.85+0.63
Copper Mountain Mining2.09+0.12
Colorado Resources0.125-0.015
ReliaBrand Inc0.015+0.003
Sunrise Resources Ltd0.05+0.025
Mission Ready Services0.39+0.015

 



23630

FEATURED Property
204727712014 Okanagan Centre Road East
4 bedrooms 3 baths
$989,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


Empty nesting: financial issues

Now that the children have ‘left the nest’, it is a good time to step back and take stock of your financial situation. Being on your own will probably cut household costs to some extent, b...


Keep your haunted home safe

Eerie sounds, spooky lights and Jack-o’-lanterns aglow—extra efforts at Halloween will keep visitors coming back for both tricks and treats. However, to keep the fun going, it’s imp...


What I learned in China

Photo: ContributedI will never be an expert on China. It is just too big, too complex and too old with layers of history and meaning that would take several lifetimes to unravel. As I said to my hosts...

_








Member of BC Press Council


22620