Canada-United States Enhanced Tax Information Exchange Agreement

b) If the information indicates that the account holder is a U.S. person, the reporting Canadian financial institution must treat the account as a U.S. reporting account, unless it receives self-certification from the account holder (which may be on an agreed W-8 or W-9 IRS form or similar form) or reasonably based on information in its possession or available to the public. that the account holder is not a specified person from the United States. 10.20 A financial institution may also find that an account holder is not an NPFI if he has reasonably established, based on an audit of information or public information in his possession, that the account holder is a financial institution in Canada or a partner financial institution (unless the IRS has publicly listed the account holder as NPFI). 10.82 In a new business account, opening an account allows a financial institution to obtain the information necessary to determine account holder status without having to refer to a standardized industrial code that would likely have been assigned on the basis of the same or similar information. Therefore, the coding systems themselves are not considered particularly useful. Notwithstanding the above, the term financial account does not contain an account, product or agreement identified as excluded from the Schedule II definition of financial accounting. For the purposes of this agreement, interest is "traded periodically" where there is a significant volume of transactions on current interest rates and a stock market in place is an officially recognized and supervised exchange by a public authority in which the market is located and which has a significant annual value of the shares traded on the stock market.

For the purposes of this paragraph, a stake in a financial institution is not "periodically negotiated" and is treated as a financial account when the interest holder (with the exception of a financial institution acting as an intermediary) is listed on the books of that financial institution. The above sentence does not apply to interest on the books of such a financial institution prior to July 1, 2014 and, with respect to interest first recorded on the books of that financial institution on July 1, 2014 or after July 1, 2014, a financial institution is not required to apply the above sentence before January 1, 2016. 1 For the purposes of the section 2 trading obligation of this agreement, the amount and characterization of payments made in connection with a U.S. reporting account may be determined in accordance with the principles of Canadian tax law, and the amount and characterization of payments made in relation to a Canadian account subject to reporting may be determined in accordance with the principles of federal income legislation. Two U.S.-Canadian citizens from two states living in Canada, Virginia Hillis and Gwendolyn Louise Deegan, referred the Canadian government (particularly the Attorney General of Canada and the Minister of National Revenues) to the Federal Court of Canada in 2014, stating (among other things) that the intergovernmental agreement between the United States and Canada, which implements the FATCA , violated the Canadian Charter of Rights and Freedom, particularly against the provisions relating to discrimination on the basis of nationality or national origin. [13] [14] [15] [16] The complaint was prepared by a group called Alliance for the Defence of Canadian Sovereignty (ADCS). [16] In 2015, the Federal Court of Justice of Canada dismissed the complaint and upheld the intergovernmental agreement. [16] [17] The Bundesgerichtshof also dismissed the appeals in 2019[18] [19] another appeal to the Federal Court of Appeal may follow.

[19] L One taken into account in Canada and excluded from the definition of the financial account under an agreement between the United States and another partner jurisdiction to facilitate the implementation of FATCA, provided that the account is subject to the same requirements and supervision in accordance with the laws of that other partner court, as if that account were created in that partner jurisdiction and managed by a partner financial institution in that parten court.

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