Tuesday, March 3rd-5.8°C
25405
23934

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

24947


Recent Trending




Today's Market
S&P TSX15133.85-130.20
S&P CDNX702.30-2.05
DJIA18203.37-85.26
Nasdaq4979.901-28.195
S&P 5002107.78-9.61
CDN Dollar0.7999-0.0007
Gold1206.60+2.60
Oil51.59-0.55
Lumber294.00-0.40
Natural Gas2.699-0.035

 
Okanagan Companies
Pacific Safety0.13-0.005
Knighthawk0.010.00
QHR Technologies Inc1.600.00
Cantex0.035-0.005
Anavex Life Sciences0.175-0.005
Metalex Ventures0.0450.00
Russel Metals25.21-0.33
Copper Mountain Mining1.25-0.04
Colorado Resources0.1350.00
ReliaBrand Inc0.0065-0.0015
Sunrise Resources Ltd0.045-0.005
Mission Ready Services0.215-0.01

 



25194

FEATURED Property
1948944303 - 4004 Bluebird Road
2 bedrooms 2 baths
$498,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


Refinance your mortgage?

Canadian Mortgage rates are low and could be dropping down in time for the spring market following a drop in the Bank of Canada Rate on January 21 by 1/4% which will save new buyers and those with mo...


Creating your retirement vision

A vision means different things to different people. To the head of a large corporation, it’s the ability to chart a course that will deliver success (think Steve Jobs and Apple), to a shaman, i...


Are you asking the right questions?

Have you ever had this happen to you? You are in the middle of your second or third good discussion with a prospect and everything seems to be going great. The prospect seems engaged and happy to work...

_








Member of BC Press Council


25107