Plain meaning
A U.S. reporting regime implemented in Canada through an intergovernmental agreement requiring certain Canadian financial institutions to report information on U.S. reportable accounts.
Also called
Canada-US FATCA agreement
Key points
- Canadian financial institutions identify and report certain U.S. reportable accounts under Canadian implementing rules.
- Information is generally sent to the CRA and then exchanged with the United States under the intergovernmental agreement.
- FATCA reporting is separate from ordinary Canadian income-tax filing obligations.
- Individuals with U.S. tax connections may also have separate U.S. tax and information-reporting obligations.
Why it comes up
FATCA affects cross-border financial reporting, privacy debates, financial institutions, and U.S.-connected taxpayers in Canada.