Canada and U.S. Reach Agreement on Foreign Account Tax Compliance Act
On February 5, 2014, the Canadian government announced that Canada and the United States have signed an intergovernmental agreement under the Canada-U.S. Tax Convention respecting the scope and application of the Foreign Account Tax Compliance Act (FACTA). Amongst other things, under the agreement financial institutions in Canada will report relevant information on certain accounts held by U.S. residents and U.S. citizens to the Canada Revenue Agency (CRA). The CRA will then exchange the information with the Internal Revenue Service. More information regarding the intergovernmental agreement can be found at: http://www.fin.gc.ca/n14/14-018-eng.asp