INQUIRY OF MINISTRY

DEMANDE DE RENSEIGNEMENT AU GOUVERNEMENT

PREPARE IN ENGLISH AND FRENCH MARKING "ORIGINAL TEXT" OR "TRANSLATION"
PRPARER EN ANGLAIS ET EN FRANAIS EN INDJQUANT"TEXTE ORIGINAL" OU "TRADUCTION"
QUESTION NOJN DE LA QUESTION BY 1 DE
DATE
Q-127
2
Mr. Brison (Kings-Hants)
October 28, 2013
REPL Y BY THE MINJSTER OF NATIONAL REVENUE
RPONSE DE LA MINISTRE DU REVENU NATIONAL
Signed by the Honourable Kerry-Lynne D. Findlay
PRINT NAME OF SIGNA TORY
SIGNATURE
QUESTION
INSCRIRE LE NOM DU SIGNATAIRE
Ml TER OR PARLIAMENTARY SECRETARY
MINISTRE OU SECRTAIRE PARLEMENTAIRE
With regard to the United States (U.S.) Foreign Account Tax Compliance Act (FATCA): (a) when
was the govemment first made aware of this legislation and how; (b) what steps has Canada taken
. .
since the legislation's introduction in the U.S., broken dawn by year; (c) during the consideration of
this legislation in the U.S., did Canada make any representations to the U.S. government and if so,
See full text of the question attached.
REPL Y 1 RPONSE ORIGINAL TEXT
TEXTE ORIGINAL
TRANSLATION
TRADUCTION
D
With respect to the above-noted question, what follows is the response from the Canada Revenue
Agency (CRA). The CRA has been asked to reply to Parts (k) to (n), (u), (v), (w)(i), (w)(iv), (x), (y), (z),
(aa), (bb), (cc), (ee), (ft), (hh), (jj), (mm), (qq) to (ss) and (uu).
Parts (k) and (/): The number of financial institutions in Canada that will be impacted by the Foreign
Account Tax Compliance Act (FATCA) will depend on the outcome of negotiations between Canada
and the United States (U.S.). As negotiations between Canada and the U.S.are still ongoing, the
number could not be calculated.
Parts (m) and (n): The number of non-financial entities in Canada that will be impacted by FATCA will
depend on the outcome of negotiations between Canada and the U.S. As negotiations between
Canada and the U.S. are still ongoing, the number could not be calculated.
Part (u): The CRA is responsible for tax administration and is not in a position to comment on Part (r).
Parts (v) and (w) (i): The implications of FATCA in Canada will depend on the outcome of
negotiations between Canada and the U.S.
Part (x): The CRA does not have this information.
Part (y): The CRA does not have this information.
. .. /2
-2-
Part (z): Any legal opinions that may have been sought by the CRA would be protected by solicitor
client privilege.
Part (aa): Any legal opinions that may have been sought by the CRA would be protected by solicitor
client privilege.
Part (bb): None have been addressed to the CRA.
Part (cc): None have been addressed to the CRA.
Part (ee): The CRA is not responsible for such negotiations and assists in an advisory capacity only.
Part (ff): Dep.artment of Finance officiais are responsible for tax policy and the on-going negotiations in
connection with FATCA. Various officiais from the CRA have attended certain negotiation sessions in
an advisory capacity.
Part (hh): The Minister of National Revenue has not personally played a role in the negotiations.
Part (iJ): The CRA is responsible for the administration of taxes and benefits in Canada and is taking
appropriate action to be prepared if it is called upon to administer any outcomes in Canada that
emerge from the on-going negotiations between Canada and the U.S. on an agreement to improve
cross-border tax compliance through enhanced information exchange und er the Canada-United States
Tax Convention.
Part (mm): The CRA is monitoring developments associated with FATCA and ensures that ali
necessary officiais are briefed, as required. Information notes have been prepared as follows: U.S.
Foreign Account Tax Compliance Act (FATCA) (COM 2013-00115); Foreign Account Tax Compliance
Act (United States) (COM 2013-00662) and Foreign Account Tax Compliance Act (United States)
(COM 2013-00953); Foreign Account Tax Compliance Act (United States) (COM2013-011 07); Foreign
Account Tax Compliance Act (FATCA) (COM 2012-00935).
Part (qq): The CRA has consulted with and has been contacted by numerous individuals and groups
to discuss the implications of FATCA and an lnter-Governmental Agreement (IGA) in Canada. The
Government of Canada has been actively engaged with financial institutions. Financial institutions
have made a number of submissions in light of the significant implications of developing new systems
to comply with FA TCA or an IGA.
Part (rr): The CRA makes significant efforts to inform taxpayers and benefit recipients of the ir
obligations and rights in connection with the prograrns it administers. However, the CRA does not
administer FATCA. FATCA is a U.S. law administered by the-Internai Revenue Service (IRS). No
intergovernmental agreement has been signed in connection with FATCA and no Canadian law has
been enacted in connection with FA TCA. As su ch, the CRA can only provide limited guidance to
Canadians such as alerting them to the on-going negotiations being led by Department of Finance
or directing them, should they wish to contact the IR S.
. . ./3
-3-
Part (ss): The CRA makes significant efforts tb inform taxpayers and benefit recipients of their
obligations and rights in connection with the programsit administers: However, the CRA does not
administer FATCA. FATCA is a U.S. law administered by the IRS. No intergovernmental agreement
has been sigried in connection with FATCA and no Canadian law has been enacted in connectioh with
FATCA. As such, the CRAcan only provide limited guidance to Canadians such as alerting
them to the on-gojng negotiations being led by the Department of Finance or directing them, should
they wish to contact the IRS.
Part (Uu): FATCA has global implications and has caused there to be discussions between a wide
range of countries, including Canada. (i) Canada has discussed FATCA and other developmnts in
relation to automatic ex change of information with OECD-memqer countries and other jurisdictions
including Germany, France, Finland, Denmark, Chile, the Netherlands, the United Kingdom and Spain.
(ii) Generally speaking, at the level of subject-matter experts. (iii) Discussions occur on a regular basis
and are expected to continue. (iv) Discussions often occur at OECD-sponsored events. (v) CRA
officiais have participated in international discussions ori FA TCA and other matters related to the
automatic exchange of information.
. .. 14
INQUIRY OF MINISTRY
. DEMANDE DE RENSEIGNEMENT AU GOUVERNEMENT
PREPARE rN ENGLISH AND FRENCH MARK.TNG TEXT" OR "TRANSLATION"
PRPARER EN ANGLAIS ET EN FRANAIS EN INDIQUANT "TEXTE ORIGINAL" OU "TRADUCTION"
QUESTION NOJNO DE LA QUESTION BY 1 DE DATE
Q-127 Mr. Brison (Kings-Hants)
QUESTION
Signed by Mr. Saxton
PRINT NAME OF SIGNA TORY
INSCRIRE LE NOM DU SIGNATAIRE
October 28, 2013
REPL Y BY THE MINISTER OF FINANCE
RPONSE DU MINISTRE DES FINANCES
SIGNATURE
MINISTER OR PARUAMENTARY SECRETARY
MINISTRE OU SECRTAIRE PARLEMENTAIRE
With regard to the United States (U.S.) Foreign Account Tax Compliance Act (FATCA): (a) when was the
government first made aware of this legislation and how; (b) what steps has Canada taken since the legislation's
introduction in the U.S., broken dawn by year; (c) during the consideration of this legislation in the U.S., did Canada
make any representations to the U.S. government and if so, (i) when, (ii) by whom, (iii) to whom, (iv) on what dates,
(v)- See full text of the question attached.
REPL Y 1 RPONSE
Finance Canada
Parts a) to v), w)(ii), x) to gg), kk), mm), oo) to vv), xx) and yy)
ORIGINAL TEXT
TEXTE ORIGINAL
(a) when was the government first made aware of this legislation and how;
TRANSLATION
TRADUCTION
D
FATCA was signed into law by the President of the United States on March 18, 2010 as part of the Hiring lncentives
to Restore Emp/oyment (HIRE) Act. Before the provisions of FATCA were included in the HIRE Act, they were tabled
as a bill in the U.S. Congress in 2009 (H.R. 3933, S. 1934) that was built on a proposai outlined in the U.S. Treasury's
General Expia nation of the Administration's Fiscal Year 201 0 Revenue Proposais ("Green Book") on May 11, 2009.
The Department of Finance monitors major tax developments in key countries.
(b) what steps has Canada taken since the legislation's introduction in the U.S., broken down by year; (c)
du ring the consideration of this legislation in the U.S., did Canada make any representations to the U.S.
government and if so, (i) when, (ii) by whom, (iii) to whom, (iv) on what dates, (v) by what authority (vi) with
what desired effect (vii) and with what outcome;
The Government respects the sovereign right of the U.S. to determine its own tax legislation and its efforts to combat
tax evasion- the underlying objective of FATCA. ln fac;t, the Government of Canada and the Government of the
United States co-operate to prevent tax evasion. However, FATCA has raised a number of concerns in Canada-
among bath dual Canada-U.S. citizens and Canadian financial institutions.
1/6
The Government has consistently raised objections to FATCA and dvanced the principle that, in seeking to meet the
objectives of FATCA, greater reliance can be placed on the procedures that already exist under the Canada-U.S. tax
treaty. The Minister of Finance has raised serious concerns directly with the U.S. about FATCA. For instance, the
Minister wrote an op-ed on the issue for publication in major U.S. newspapers:
http://business. financialpost.com/2011/09/16/read-jim-flahertys-letter-on-americans-in-canada/. The Government is
pleased that the U.S. has accepted the principle of greater reliance on the existing procedures in the Canada-U.S. tax
treaty as the basis for an amended process for achieving FATCA's objective in Canada through the negotiation of an
intergovernmental agreement.
On November 8, 2012, the Government announced that it is in negotiations with the U.S. to sign an intergovernmental
agreement for the implementation of FATCA. As outlined on page 156 of Economie Action Plan 2013
(http://www.budget.gc.ca/2013/doc/plan/budget2013-eng.pdf), the agreement under negotiation is intended to
improve cross-border tax compliance through enhanced information exchange und er the Canada-U.S. tax treaty,
including information exchange in support of the U.S. FATCA provisions. The agreement under negotiation is based
on the reciprocal version of the Model1 IGA released by the U.S. Treasury on July 26, 2012 and updated periodically
sin ce th at ti me (http://www. treasury .gov/resource-center/tax-policy/treaties/Pages/F A TCA.aspx).
The Government is continuing to work with its U.S. counterparts to develop an approach that bath countries will find
agreeable. The Government is close to a proposed agreement with the U.S. and is hopeful th at it will be able to
announce further details in the future. The implications of FATCA in Canada will depend on the outcome of
negotiations between Canada and the U.S.
(d) how many individuals in Canada will be affected; (e) how was the figure in (d) calculated; (f) how many
Canadan citizens residing in Canada are U.S. persans under FATCA; (g) how many Canadian permanent
residents are U.S. persans under FATCA; (h) how many applications for permanent residency is Canada
currently processing from persans who are or will be treated as U.S. persans under FATCA; (1] broken dawn
by province and territory and status, how many personsn Canada are projected to be affected by FATCA; (Jl
how was the figure in (/) calculated;
The implications of FATCA in Canada, including on the number of individuals in Canada that would be affected, will
depend on the outcome of negotiations between and the U.S.
(k) how many Canadian financial institutions will be impacted by FATCA; (/) how was the figure in (k)
calculated; (m) how many non-financial Canadian entities will be impacted by FATCA; (n) how was the figure
in (m) calculated;
FATCA could potentially impact any financial institution that meets the definition of a financial institution as defined in
ttie FATCA legislation. The number of financial institutions and non-financial entities in Canada that will be impacted
by FATCA will depend on the outcome of negotiations between Canada and the U.S.
(o) what consultations has the government undertaken with respect to FATCA's impact on persans resident
in Canada; (p) what consultations has the government undertaken with respect to FATCA's impact on
financial institutions; (q) what consultations has the government undertaken with respect to FATCA's impact
on non-financial entities;
When the Government announced on November 8, 2012 on the Department of Finance website that it had entered
into negotiations with the U.S. to sign an IGA, the posting on the Department of Finance website invited Canadians
wishing to offer comments concerning the negotiations to send their views to the Department.
2/6
(r) what estimates and studies have been undertaken with respect to the consequences of a 30% withholding
of U.S. sourced income to financial institutions; (s) when did the studies in (r) occur and what were their
conclusions;
FATCA has raised a number of concerns in Canada- among bath dual Canada-U.S. citizens and Canadian financial
institutions. These concerns include the possibility of the FA TCA withholding tax being applied against Canadian
financial institutions or their account holders.
The Government has advanced the principle that, in seeking to meet the objectives of FATCA, greater reliance can
be placed on the procedures th at already exist under the Canada-U.S. tax treaty. The Govemment is pleased the
U.S. has accepted this principle as the basis for an amended process for achieving FATCA's objectives in Canada,
and Canada and the U.S. are negotiating an agreement to this effect.
As noted above, the negotiations between Canada and the U.S. on an IGA are based on the Madel 1 JGA released by
the U.S. Treasury. The terms of the Madel 1 IGA include provisions th at wou Id protect financial institutions in Canada
and their clients from FATCA's withholding taxes. The implications of FATCA for Canadians will depend on the
outcome of negotiations between Canada and the U.S.
(t) how much has been spent evaluating FATCA's impact on Canadians; (u) broken down by department, how
was the figure in (r) determined;
The Department of Finance has been assessing the implications of FATCA for Canada since 2009. The Department
of Finance's costs in this regard have been covered by existing resource levels. No federal department to date has
been allocated new funds through the Parliamentary appropriation process for any costs related to FATCA.
(v) what estimates have been undertaken with respect to FATCA's cost to implement for Canada and with
what conclusions;
As noted, FATCA has raised a number of concerns in Canada- among both dual Canada-U.S. citizens and
Canadian financial institutions. These concerns include the question ofwhether the FATCA reporting requirements,
that would campel financial institutions to report information on account holders that are U.S. citizens directly to the
Internai Revenue service (IRS), would be inconsistent with Canadian privacy laws. Unless an agreement is in place,
Canadian financial institutions and dual Canada-U.S. citizens holding financial accounts in Canada would be required
to comply with FATCA starting July 1, 2014. To address these concerns, Canada has engaged in lengthy negotiations
with the U.S.
Under the Madel 1 IGA approach which is the basis for the negotiations, financial institutions in Canada would not
report information directly to the IRS. Rather, information on U.S. clients would be reported to the Canada Revenue
Agency (CRA), which would then exchange it with the IRS through the existing provisions, and protected by the
safeguards under, the Canada-U.S. tax treaty. The Model1 IGA approach would also protect clients of financial
institutions in Canada against FATCA's withholding taxes.
(w) for the five years starting in 2014, how much is FATCA implementation expected to cost (i) Canada
Revenue Agency, (ii) the department of Finance, (iii) the department of Justice, (iv) ether government
departments, agencies, boards, or tribunals; (x) broken dawn by year and cost from 2010-2020, what is the
total financial impact of FATCA implementation expected to be on Canadian taxpayers; (y) how were the
figures in (x) obtained;
1t is anticipated that the Department of Finance's costs will be absorbed within existing resource levels.
3/6
(z) what outside legal opinions has the. government sought with respect to FATCA's compatibility with
Canadian law; (aa) when were the opinions in (z) sought and at what expense;
The Department of Finance is unable to provide information in response to this question because the Department
does not have relevant information or the Department cannat disclose the information because it is subject to
solicitor-client privilege.
(bb} have unsolicited legal opinions been sent to the government regarding FATCA; (cc) how many opinions
in (bb) has the government received (i) on what dates, (ii) with what conclusions, (iii) with what impact on the
Government's actions;
The Department of Finance received an unsolicited legal opinion from Mr. Peter Hogg on December 12, 2012, which
has since been made public through the Access to Information Act, with the consent of Mr. Hogg. As with ali
submissions received from the public, Mr. Hogg's views have been taken into consideration by the Department of
Finance as part of its policy development process. Any conclusion related to consideration by the Government of
Mr. Hogg's legal opinion is subject to solicitor-client privilege.
(del) has the government assessed the possibility of not acceding to FATCA in any way and, if so, with what
conclusion and with what cost to Canada orto Canadians when compared to accession;
If Canada were ta not negotiate an agreement, obligations for Canadian financial institutions to comply with FATCA
would be unilaterally and automatically imposed on them by the U.S. as of July 1, 2014. These obligations would
force Canadian financial institutions to choose between (i) entering into an agreement with the IRS that would require
them to report to the IRS on their U.S. account holders, which would raise concerns about consistency with Canadian
privacy laws, and (ii) being subject to the FATCA withholding taxon certain U.S. source payments, which could have
a significant negative effect on the Canadian economy. ln addition, under FATCA, the obligations on Canadian
financial institutions could result in their clients being subject to FATCA withholding or having their accounts closed in
certain situations.
The Government has consistently raised objections ta FATCA and advanced the principle that, in seeking ta meet the
objectives of FATCA, greater reliance can be placed on the procedures that already exist under the Canada-U.S. tax
treaty. We are pleased the U.S. has accepted this principle as the basis for an amended process for achieving
FATCA's objectives in Canada, and Canada and the U.S. are negotiating an agreement to this effect.
(ee) how much ha.s been spent on negotiations surrounding FATCA, broken down by year and expense;
The Department of Finance's negotiating costs have been absorbed within existing resource levels.
(tf) which i.ndividuals from the government have negotiated on Canada's behalf regarding FA TCA;
The Canadian delegation ta negotiate an IGA with the U.S. is comprised of officiais from the Department of Finance
with assistance from officiais of the CRA.
(gg) what has the Minister of Finance's persona! role been with respect to FATCA negotiations;
The Minister of Finance has provided direction ta the Department of Finance regarding the negotiations and has
stayed abreast of developments throughout the negotiation process.
(kk) what penalties will there be for U.S. failure to meet any of its negotiated obligations;
The implications of FATCA in Canada will depend on the outcome of negotiations between Canada and the U.S.
4/6
{mm) broken down by department and agency, and with specifie record numbers and titles, what briefing
materials and files have been developed regarding FATCA:
See table be low.
Trac king Date Title ., .. :, .. > .
f Number - : . .. ,. __ -. ,:_.-
. . ... . "'. . ' : .. :
2013FIN396125 13/9/2013
2013FIN391084 29/5/2013
2013FIN388946 16/4/2013
2013FIN384597 8/2/2013
2012FIN378373 24/9/2012
2012FIN376486 15/8/2012
2012FIN37 4854 12/7/2012
2012FIN369017 24/4/2012
2012FIN363958 17/2/2012
2011 FIN361544/ 16/12/2011
2011 FIN361846
2011FIN360134 23/11/2011
2011 FIN355319 9/9/2011
2011FIN354148 30/8/2011
2011 FIN351692 18/8/2011
2011 FIN353037 22/7/2011
2011 FIN350793 29/6/2011
2011 FIN352052 28/6/2011
2011 FIN341782 7/2/2011
201 OFIN334184 13/1/2011
2010FIN331214 6/10/2010
2010FIN327362 26/7/2010
201 OFIN324081 28/6/2010
FATCA IGA Fact Sheet
[title withheld]
Sun Life- Longevity Risk and FATCA
FATCA: Recent Developments and Update on Negotiations with the
U.S.
FATCA [title partially withheld]
FATCA- Release of US Modellntergovernmental
FATCA [title j)_artially_ withhelc!l
FATCA- Release of U.S .. Draft Regulations and Joint Statement; [title
withheld]
FATCA- Letter from lnstitute of International Finance
Updates on U.S. Tax and Account Reporting Requirements for U.S.
citizens residing in Canada and on the Foreign Account Tax
Compliance Act
Update: Foreign Account Tax Compliance Act (FATCA)
Fact Sheet on U.S. Tax Re_portin_g_ lncluding FATCA
Update on the [title partially withheld] and [title partially withheld] efforts
on FATCA
[title partially withheld] the U.S. Foreign Account Tax Compliance Act
(FATCA)
Foreign Account Tax Compliance Act Update- Details of
Implementation Timeline Released by US
Update on outreach [title partially withheld] other countries on FATCA
[title withheld]
Foreign Account Tax Compliance ActlFATCAJ Update
Foreign Account Tax Compliance Act (FATCA) Update
Foreign Account Tax Compliance Act (FATCA) Update
F ATCA Update: [title partially withheld]
Foreign Account Tax Compliance Provisions of the Hiring lncentives ta
Restore Employment Act
ln preparing responses to parliamentary questions, the Government is guided by the ru les and principles contained in
the Privacy Act and the Access to Information Act, and therefore certain information has been withheld consistent with
these rules and principles.
(oo) have any future public consultations with respect to FATCA implementation been planned and, if not,
why not;
When the Government announced on November 8, 2012 on the Department of Finance website that it had entered
into negotiations with the U.S. to sign an IGA, the posting on the Department of Finance website invited Canadians
wishing to offer comments concerning the negotiations to send their views to the Department.
(pp) what is the projected impact of FATCA on the Bank of Canada;
The U.S. FATCA legislation exempts from FATCA's due diligence, reporting, and withholding requirements any
foreign central bank of issue, which would include the Bank of Canada. See paragraph 1471(f)(3) and subparagraph
1472(c)(1)(F) of the Internai Revenue Code.
5/6
(qq) what efforts has the government made with respect to informing financial institutions of their obligations
under FATCA; (rr) what efforts has the government made with respect to informing non-financial entities of
their obligations under FATCA; (ss) what efforts has the government made with respect to informing
individuals residing in Canada of their obligations under FATCA;
The Government does not provide advice with respect to compliance with foreign laws. The Government has
consulted with ind been contacted by individuals, groups and corporations, particularly in the financial sector, to
discuss the implications of FATCA and an IGA in Canada.
The Government announced on November 8, 2012 that it is in negotiations with the U.S. on an agreement to improve
cross-border tax compliance through enhanced information exchange under the Canada- U.S. tax treaty, including
information exchange in support of the U.S. FATCA provisions. The announcement was made on the Oepartment of
Finance's treaty page (http://www.fin.gc.ca/treaties-conventions/notices/unitedstates-etatsunis-eng.asp). Further
information about the negotiations was highlighted on page 156 of Economie Action Plan 2013
(http://www. budget. ge. ca/20 13/doc/plan/budget2013-eng. pdf).
(tt) has Canadian non-compliance with FATCA been assessed as a possibility and, if so, to what extent;
If Canada were to not negtiate an agreement, obligations for Canadian financial institutions to comply with FATCA
would be unilaterally and automatically imposed on them by the U.S. as of July 1, 2014. These obligations would
force Canadian financial institutions to choose between (i) entering into an agreement with the IRS that would require
them to report to the IRS on their U.S. account holders, which would raise concerns about consistency with Canadian
privacy laws, (ii) being subject to the FATCA withholding taxon certain U.S. source payments. Under FATCA, the
obligations on Canadian financial institutions could result in their clients being subject to FATCA withholding or having
their accounts closed in certain situations.
(uu) has FATCA been raised in discussions between Canada and countries other than the U.S. and, if so, (i)
with which countries, (ii) at what level(s) did the discussion occur, (iii) on what dates, (iv) in what forum, (v)
and with which individuals from Canada participating;
Government officiais have held discussions with various countries in which FAT CA has been discussed. Sorne of
these discussions occurred at the OECD while ethers were bilateral discussions. The names of individual countries
cannet be disclosed as this could affect international relations.
(w) have any studies or analysis taken place with respect to FATCA's impact on immigration to Canada by
persons subject to this legislation and, if so, with what conclusion;
The Department of Finance has not undertaken any such studies or analysis, and is not aware of any having been
undertaken.
(xx) has the American Ambassador to Canada raised the issue of FATCA in any discussions and if so, (i)
which discussions, (ii) on what dates, (iii) with what outcome;
The Department of Finance is not aware that the American Ambassador to Canada has raised with the Government
the issue of FATCA.
(yy) has the government considered the correspondence of Peter Hogg regarding F ATCA and if so, (i) with
what impact on policy development, (ii) with what conclusion;
As with ali submissions received from the public, Mr. Hogg's views have been taken into consideration by the
Department of Finance as part of its po licy development process.
Office of the Superintendent of Financial Institutions {OS FI)
This question is not applicable to the Office of the Superintendent of Financial Institutions.
6/6
INQUIRY OF MINISTRY
DEMANDE DE RENSEIGNEMENT AU GOUVERNEMENT
PREPARE IN ENGLISH AND FRENCH MARKING "ORIGINAL TEXT" OR "TRANSLATION"
PRPARER EN ANGLAIS ET EN FRANAIS EN INDIQUANT "TEXTE ORIGINAL" OU "TRADUCTION"
QUESTION NO.IN DE LA QUESTION BY 1 DE DATE
QUESTION
Q-127
2
Mr. Brison (Kings-Hants) October 28, 2013
John Baird, P.C., M.P.
PRINT NAME OF SIGNA TORY
INSCRIRE LE NOM DU SIGNATAIRE
REPL Y BY THE MINISTER OF FOREIGN AFF AIRS
RPONSE DU MINISTRE DES AFFAIRES TRANGRES
SIGNATURE
MINISTER OR PARUAMENTARYSECRETARY
MINISTRE OU SECRTAIRE PARLEMENTAIRE
With regard to the United States (U.S.) Foreign Account Tax Compliance Act(FATCA): (a) when was the
government first made aware ofthis legislation and how; (b) what steps has Canada taken since the legislation's
introduction in the U.S., broken down by year; (c) during the consideration of this legislation in the U.S., did Canada
make any representations to the U.S. government and if so, (i) when, (ii) by whom, (iii) to whom, (iv) on what dates,
(v) by what authority (vi) with what desired effect (vii) and with what outcome; (d) how many individuals in Canada
will be affected; (e) how was the figure in (d) calculated; (j) how many Canadian citizens residing in Canada are
U .S. persons under F ATCA; (g) how many Canadian permanent residents are U.S. persons under F ATCA; See full
text of the question attached.
REPL Y 1 RPONSE
Foreign Affairs, Trade and Development Canada (DFATD)
ORIGINAL TEXT
TEXTE ORIGINAL
TRANSLATION
TRADUCTION
D
For this section, the responses of the Minister of International Trade, the Minister of Foreign Affairs and the
Minister of International Oevelopment are the same.
DFATD is responsible for parts w)(iv), z), aa), bb), cc) and mm) of the question
lt should be noted that in processing parliamentary returns, the Government applies the Privacy Act and the
principles set out in the Access to Information Act, and certain information has been withheld on the
grounds that the information constitutes persona! information .
. (w) for the five years starting in 2014, how much is FATCA implementation expected to cost, (iv)
other government departments, agencies, boards, or tribunals;
DFATD does not expect ta incur any implementation costs.
. . ./2
-2,-
(z) what outside legal opinions has the government sought with respect to FATCA's compatibility
with Canadian law; (aa) when were the opinions in (z) sought and at what expense; (bb) have
unsolicited legal opinions been sent to the government regarding FATCA cc) how many opinions in
(bb) has the government received, (i) on what dates, (ii) with what conclusions, (iii) with what impact
on the Government's actions;
DFATD has not sought outside legal opinion on FATCA and there is no record of any unsolicited opinions
having been submitted.
(ii) what has the Minister of Foreign Affairs' persona! role been with respect to FATCA negotiations;
The Minister of Foreign Affairs has not had a personal rote with respect to FATCA negotiations aside from
requesting that the Minister of Finance review the issue of FATCA.
(mm) broken down by department and a geney, and with specifie record numbers and titles, what
briefing materials and files have been developed regarding FATCA
DFATD developed the following briefing materials and files regarding FATCA:
Briefing materiallfile: Environmental Strategie Evaluation. Title: The lntergovernmental Agreement
Between Canada and the United States to lmplement the U.S. Foreign Account Tax Compliance Act
(FATCA).
Briefing material/file: Briefing Document. Title: Background to be Provided to Missions: U.S. Foreign
Account Tax Compliance Act (FATCA).
Briefing material/file: Memorandum for Information to Deputy Minister of International Trade. Title:
Providing Support to Canadian Companies with the Application of the U.S. Foreign Account Tax
Compliance Act (FATCA) Abroad. Document number: BPTS 00995-2013.
Briefing materiallfile: Meeting Note for Minister of Foreign Affairs Title: Minister of Foreign Affairs
Meeting- Thursday, January 5, 2012. Document number: BPTS 00007-2012.
Briefing materiallfile: Memorandum of Information for the Minister of Foreign Affairs and the Minister
of International Trade. Title: The Impact of U.S. Tax Obligation on Canada-USA Dual Citizens.
Briefing materiallfile: Memorandum of Information for Assistant Deputy Minister Title: Americas U.S.
Foreign Account Tax Compliance Act (FATCA)
.- Briefing materiallfile: GeneraiBrief. Title: Foreign AccountTax Compliance Act (FATCA).
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(ww) has the Canadian Ambassador to the U.S. raised the issue of FATCA in any discussions and if
so, (i) which discussions, (ii) on what dates, (iii) with what desired goal;
1. (i) Ambassador Doer held a meeting with Senator Chuck Schumer (D-NY) . (ii) The date was April 17,
2012 (iii) The goal was, as noted in the request to the Senator's office, "to discuss TPP, ballast water,
and Beyond the Border." FATCA was discussed on the margins of the meeting.
2. (i) Ambassador Doer raised FATCA at a meeting with congressman Barney Frank, ranking member
of the House Financial Services Committee. (ii) The date was April 23, 2009. (iii) The goal was, as
noted in the request to the Congressman's office, "to discuss issues related to the ongoing financial
crisis and policy response, as weil as issues related to the auto sector." FATCA was discussed on
the margins of the meeting.
3. (i) Ambassador Doer raised FATCA at a meeting with congressman Barney Frank, Chair of the
House Financial Services Committee. (ii) The date was April22, 2010. (iii) The goal was, as noted in
the request to the Congressman's office, "to discuss finance issues in general and financial reform
legislation." FATCA was discussed on the margins of the meeting.
To Note: Ambassador Doer raised FATCA as a general subject matter in telephone calls with
representatives of Congress/Senate wh ile discussing the financial sector. FA TCA was a Iso mentioned in
meetings at the U.S Department of Treasury. However, due to the frequency and multiple subjects
discussed, specifie dates are not available.
(xx) has the American Ambassador to Canada raised the issue of FATCA in any discussions and if
so, (i) which discussions, (ii) on what dates, (iii) with what outcome;
The principles set out in the Access to Information Act have been applied and therefore information
concerning discussions with a representative of another country's government cannet be divulged.
INQUIRY OF MINISTRY
DEMANDE DE RENSEIGNEMENT AU GOUVERNEMENT
,, PREPt\RE IN ENGLLSH AND FRENCH MARK!NG "ORIGINAL TEXT" OR "TRANSLATION"
G PRPARER EN ANGLAIS ET EN FRANAIS EN lNDIQUANT "TEXTE ORIGINAL" ou "TRADUCTION"
\1
QUESTION NO.fNc DE LA QUESTiON
Q-127
BY iDE
Mr. Brison (Kings-Hants)
QUESTION
Paul Calandra
PRINT NAME OF SIGNA TORY
iNSCRIHE LE NOM DU SiGNATAIRE
DATE
October 28,2013
REPL Y BY THE OFFICES OF THE PRIME MINISTER AND THE PRIVY COUNCIL
RPONSE OU CABINET DU PREMIER MINISTRE ET DU BUREAU OU CONSEIL PRIV
. /: __
/ ( . . ---------<''"'/-_->"" __ ,,/'
i ......
.. SIGNATURE
MltJISTER OR PARLIAMENTARY SECRET.4RY
MINiSTRE OU SECRETAIRE PARLEMENT AIRE
With regard to the United States (U,S.) Foreign Account Tax Compliance Act (FATCA): (a) when was the
government first made aware of this legislation and how; (b) wh at steps has Canada taken sin ce the
legislation's introduction in the U.S., broken down by year; (c) during the consideration of this legislation
in the U.S., did Canada make any representations to the U.S. government and if so, (i)- See full text of
the question attached.
REPL Y 1 REPONSE
ORIGINAL TEXT
TEXTE ORIGINAL
TRA.NSLATION D
TR"<DUCTION
With regard to the United States Foreign Account Tax Compliance Act, the Privy Council Office responds
th at the information requested is withheld in accord ance with the princip les of the Access ta Information Act.
INQUIRY OF MII\,IISTRY
DEMANDE DE RENSEIGNEMENT AU GOUVERNEMENT
PREPARE IN ENGLISH AND FRENCH MARKING "ORIGINAL TEXT" OR "TRANSLATION"
PRPARER EN ANGLAIS ET EN FRANAIS EN INDIQUANT "TEXTE ORIGINAL" OU "TRADUCTION"
QUESTION NO./NDE LA QUESTION BY 1 DE DATE
Q-121 Mr. Hsu (Kingston and the Islands)
QUESTION
Signed by Mr. Saxton
PRINT NAME OF SIGNA TORY
INSCRIRE LE NOM DU SIGNATAIRE
October 25, 2013
REPL Y BY THE MINISTER OF FINANCE
RPONSE DU MINISTRE DES FINANCES
SIGNATURE
MINISTER OR PARUAMENTARY SEl.ETARY
MINISTRE OU SECRTAIRE PARLEMENTAIRE
With regard to the implementation of the Foreign Account Tax Compliance Act (FATCA): (a) what steps has
Canada undertaken to complete an lnter-Governmental Agreement (IGA) with the United States; (b) with what type
of legal instrument will the government enact a FATCA implementation agreement; (c) will the government bring an
IGA before Parliament and, if so, in what form; (cf) what steps are in place to ensure parliamentary review of an
IGA; ... See full text of the question attached.
REPL Y 1 RPONSE
Finance Canada
Parts a) to 1}, o) to g), s) to ii), kk) to oo), qg) to ss), ww), and zz) to ccc)
ORIGINAL TEXT
TEXTE ORIGINAL
TRANSLATION
TRADUCTION
D
(a) what steps has Canada undertaken to complete an lnter-Governmental Agreement (IGA) with the United
States;
The Government of Canada has consistently raised objections to FATCA and advanced the principle that, in seeking
to meet.the objectives of FATCA, greater reliance can be placed on the procedures that already exist under the
Canada-U.S. tax treaty. We are pleased the U.S. has accepted this principle as the basis for an amended process for
achieving FATCA's objectives in Canada, and Canada and the U.S. are negotiating an agreement to this effect.
The Government of Canada announced on November 8, 2012 that it is in negotiations with the U.S. on an agreement
to improve cross-border tax compliance through enhanced information exchange under the Canada- U.S. tax treaty,
including information exchange in support of the U.S. FATCA provisions. The announcement was made on the
Department of Finance's treaty page (http://www.fin.gc.ca/treaties-conventions/notices/unitedstates-etatsunis-
eng.asp).
As outlined on page 156 of Economie Action Plan 2013 (http://www.budget.gc.ca/2013/doc/plan/budget2013-eng.pdf),
the agreement under negotiation is intended to improve cross-border tax compliance through enhanced information
exchange under the Canada-U.S. tax treaty, induding information exchange in support of the U.S. FATCA provisions.
1/6
The negotiations are based on the reciprocal version of the Model1 IGA released by the U.S. Treasury on
July 26, 2012 and updated periodically since that time (http://www.treasury.gov/resource-center/tax-
policy/treaties/Pages/FA TCA.aspx).
Under the Mode! 1 IGA approach, financial institutions in Canada would not report information directly to the IRS.
Rather, information on U.S. clients would be reported to the Canada Revenue Agency (CRA), which would then
exchange it with the U.S. Internai Revenue Service (IRS) through the existing provisions, and protected by the
safeguards un der, the Canada-U.S. tax treaty. The Mode! 1 IGA approach would a Iso protect clients of financial
institutions in Canada against FATCA's withholding taxes as weil as the provisions of FATCA that could require that
certain clients of non-U.S. financial institutions be denied access to financial services.
The Government of Canada is continuing to work with the U.S. to develop an approach that both countries will find
agreeable. The Government of Canada is close to a proposed agreement.with the U.S. and is hopeful that it will be
able to announce further details in the future. If an agreement is reached, it would be made public and require
Parliamentary approval for implementation.
(b) with what type of legal instrument will the government enact a FATCA implementation agreement; (c) will
the government bring an IGA before Parliament and, if so, in what form; (d} what steps are in place to ensure
parliamentary review of an IGA;
If an agreement to implement FATCA is reached with the U.S., the agreement would be made public and require
Parliamentary approval for implementation.
(e) what studies have been undertaken asto whether an IGA can be implemented as an interpretation of the
existing double tax treaty;
Article XXVII of the Canada-U.S. tax treaty authorizes the exchange of information for tax purposes, including on an
automatic basis. The due diligence and reporting components of an IGA would require implementing legislation.
(f) in what ways will the government involve Parliament in any process to am end interpretation of the double
taxation treaty;
If an agreement to implement FATCA is reached with the U.S., the agreement would be made public and require
Parliamentary approval for implementation.
Interpretation of the Canada-U.S. tax treaty is an administrative and judicial process. The CRA is the Canadian
authority for administering the tax treaty. Taxpayer disputes regarding interpretation of the tax treaty can rely on the
processes under the treaty or can be taken to the Tax Court of Canada.
(g) who is involved in the process indicated in (a);
The Canadian delegation to negotiate an IGA with the U.S. is comprised of officiais from the Department of Finance
with assistance from offiCiais of the CRA.
(h) by what criteria is the government evaluating any proposed IGA with the US; (1) who established the
criteria in(h), (i) on what date, (ii) under what authority;
FATCA has raised a number of concerns in Canada- among both dual Canada-U.S. citizens and Canadian financial
institutions. These concerns include the question of whether the FATCA reporting requirements, that would compel
financial institutions to report information on account holders that re U.S. citizens directly to the IRS, would be
2/6
inconsistent with Canadian privacy laws, as weil as the possibility that, under FATCA, financial institutions would be
required to deny services to certain clients in certain situations.
Unless an agreement is in place, Canadian financial institutions and dual Canada-U.S. citizens holding financial
accounts in Canada would be required to comply with FATCA starting July 1, 2014. To address these concerns,
Canada has engaged in lengthy negotiations with the U.S.
(/1 is a draft IGA currently being negotiated, and if so, what is the status of said negotiations; (k) when will the
draft IGA be made public;
The Government of Canada announced onNovember 8, 2012 that it is in negotiations with the U.S. on an agreement
to improve cross-border tax compliance through enhanced information exchange under the Canada-U.S. tax treaty,
including information exchange in support of the U.S. FATCA provisions. The announcement was made on the
Department of Finance's treaty page (http://www. fin. ge. ca/treaties-conventions/notices/unitedstates-etatsunis-
eng.asp).
The Government of Canada is continuing to work with the U.S. to develop an approach that bath countries will find
agreeable. The Government of Canada is close to a proposed agreement with the U.S. and is hopeful that it will be
able to announce further details in the future. If an agreement is reached, it would be made public at that time.
(/)will the public be consulted for input on any agreement, and if so, by what means;
When the Government announced on November 8, 2012 on the Department of Finance website that it had entered
into negotiations with the U.S. to sign an IGA, the posting on the website invited Canadians wishing to offer
comments concerning the negotiations ta send their views to the Department.
(o) with which specifie individuals and groups did the Minister of Finance consult regarding FATCA, and on
what dates; (p) with which specifie individuals and groups did the Minister of Finance consult regarding any
IGA, and on what dates;
The Government of Canada has consulted and has been contacted by individuals and groups to discuss the
implications of FATCA and an IGA in Canada.
(q) what studies and analyses has the Department of Finance undertaken with respect to FATCA;
The Department of Finance is reviewing the implications of FATCA on an ongoing basis. FATCA has raised a number
of concerns in Canada- among bath dual Canada-U.S. citizens and Canadian financial institutions.
(s) what analyses and studies have been undertaken asto whether the proposed FATCA regime constitutes
an override of the existing double tax convention; (t) what were the conclusions of the studies in (s);
Article XXVII of the Canada-U.S. tax treaty authorizes the exchange of information for tax purposes, including on an
automatic basis. Under a potential agreement with the U.S., information exchange between Canada and the U.S.
would take place under the existing provisions, and protected by the safeguards under, the Canada-U.S. tax treaty.
(u) what steps is the government taking to ensure that, as a result of FATCA or an IGA, the US will not be
allowed to impose higher taxes on Canadian persons than those agreed under the current convention;
As noted above, the negotiations between Canada and the U.S. on an IGA are based on the Madel 1 IGA released by
the U.S. Treasury. The Model1 IGA is strictly an information-sharing regime. lt would not allow the U.S. to impose
higher taxes on Canadian persans than those agreed under the existing provisions of the Canada-U.S. tax treaty.
3/6
(v) what studies and analyses have been undertaken to determine whether Canadian citizens and residents
are or will be denied financial services in Canada owing toUS tax law in general and FATCA in particular; (w)
' what are the conclusions or recommendations of the studies in (v); (x) what mechanisms are in place to
ensure that Canadian citizens and residents are not and will not be denied financial services in Canada owing
toUS tax law in general and FATCA in particular; (y) what measures will be taken to remedy deniai of
services to Canadians as a result of FATCA;
The negotiations between Canada and the U.S. on an IGA are based on the Model 1 IGA released by the U.S.
Treasury. The terms of the Mode! 1 IGA would protect clients of financial institutions in Canada from the provisions of
FATCA that would require Canadian financial institutions to deny access to financial services to certain clients in
certain situations. This approach would ensure that there would be no conflict with the Access to Basic Banking
Services Regulations under the Bank Act.
(z) what studies and analyses will be undertaken to assess FATCA's impact on the availability ofTFSAs and
RESPs for dual US-Canada citizens; (aa) what are the conclusions of any studies in (z);
The Mode! 1 IGA approach would not impose any U.S. taxes or pe'nalties on account holders at Canadian financial
institutons, nor would it include any provisions that would limit the availability of TFSAs or RESPs for dual U.S.-
Canada citizens.
(bb) what analyses and studies have been undertaken regarding whether the US definition of "resident" for
tax purposes, and its impact on Canadians with dual status, is compatible with Canadian law, including the
Charter of Rights and freedoms; (cc) what analyses and studies have been undertaken regarding whether the
US definition of "resident" for tax purposes, and its impact on Canadians with dual status, as will be
enforced by F ATCA or by an IGA, is compatible with Canadian law and, in particular, the Charter of Rights
and Freedoms;
Canada respects the sovereign right of the U.S. to determine its own tax legislation and its efforts to combat tax
evasion- the underlying objective of FATCA. Regarding the U.S. definition of "resident" for tax purposes, Article IV of
the Canada-U.S. tax treaty contains provisions for applying the concept of residence in the context of Canada-U.S.
tax relations, including acknowledgement that the U.S. taxes individuals who are citizens of that country.
ln respect of any legislation that might be proposed to implement an IGA in Canada, the Minister of Justice is required
under section 4.1 of the Oepartment of Justice Act to examine ali government legislation introduced in or presented to
the House of Gommons by a minister of the Crown for inconsistency with the Charter of Rights and Freedoms and to
report that inconsistency to the House of Gommons.
(dd) what analyses and studies have been conducted with respect to FATCA's consequences upon
Canadians who believed their US Citizenship had been relinquished; (ee) with respect to the studies
referenced in (dd), what particular efforts has the government undertaken to ensure no violation of a
Canadian's charter right would be occasioned by implementingFATCA or an IGA;
The Government of Canada is not able to provide tax advice with respect to individuals who may have tax obligations
in ether jurisdictions.
As noted above, in respect of any legislation that might be proposed to implement an IGA in Canada, the Minister of
Justice is required under section 4.1 of the Department of Justice Act to examine ali government legislation
introduced in or presented to the Hou se of Gommons by a minister of the Crown for inconsistency with the Charter of
Rights and Freedoms and to report that inconsistency to the House of Gommons.
4/6
(ff) what studies and analyses have been undertaken regarding the likely cost of FATCA implementation to (i)
Canadian private institutions, (ii) Canadian individuals, (iii) the government; (gg) how were the figures in (ft)
arrived at, by whom, when, and in consultation with whom; (hh) what studies and analyses have been
undertaken asto whether the likely cost of FATCA implementation to Canadian private institutions, Canadian
individuals, and the government will be offset by the receipt of reciprocal tax information and Canadian tax
law enforcement by the US; (ii) what analyses and studies have been undertaken as to whether the likely
costs and benefits described in (ff) and (hh) are likely to be greater, fesser, or the same as under the current
tax-information-sharing relationship with the US;
As noted, FATCA has raised a number of concerns in Canada- among bath dual Canada-U.S. citizens and
Canadian financial institutions. These concerns include the question of wh ether the FAT CA reporting requirements,
that would campel financial institutions to report information on account holders th at are U.S. citizens directly ta the
IRS, would be inconsistent with Canadian privacy laws. Unless an agreement is in place, Canadian financial
institutions and dual Canada-U.S. citizens holding financial accounts in Canada would be required ta comply with
FATCA starting July 1, 2014. Ta address these concerns, Canada has engaged in lengthy negotiations with the U.S.
Under the Madel t IGA approach which is the basis for the negotiations, financial institutions in Canada would not
report information directly ta the IRS. Rather, information on U.S. clients would be reported ta the CRA, which would
then exchange it with the U.S. Internai Revenue Service (IRS) through the existing provisions, and protected by the
safeguards under, the Canad;i-U.S. tax treaty. The Model1 IGA approach would also protect clients of financial
institutions in Canada against FATCA's withholding taxes.
(j/) what agencies, boards, tribunats, or commissions of the government have studied, interpreted, analyzed,
or commented upon FATCA, (i) to what extent, (ii) on what dates, (iii) with what conclusion(s);
The Oepartment of Finance is not aware of any agencies, boards, tribunals, or commissions of the Government which
have analyzed FATCA other than the CRA and the Office of the Privacy Commissioner.
(kk} what specifie steps has the government taken to assess the privacy implications of FATCA;
The Oepartment of Finance continues ta examine the relationship between FATCA and privacy including
through ongoing consultations with lndustry Canada and the Office of the Privacy Commissioner.
(/1) on what dates and with respect to what topics has the government met with the Privacy Commissioner to
discuss FATCA or the effect of any IGA;
Discussions between the Oepartment of Finance and the Office .of the Privacy Commissioner have been ongoing.
(mm) broken down by province or territory, (i) on which dates and (ii) with what individuals in the provincial
and territorial governments did the government consult on the subject of FATCA; (nn) broken down by
province or territory, (i) on which dates and (ii) with what individuals in the provincial and territorial
governments did the government consult on the subject of any IGA; (oo) does the government have the
support of every province and territory with respect to any proposed implementation of FATCA, and what
evidence does the government have that this support exists;
The Government of Canada has updated the provinces and territories on developments regardin.g FATCA, including
the status of Canada's IGA negotiations with the U.S.
5/6
(qq) how will the government monitor and enforce compliance by Canadian institutions with FATCA
requirements; (rr) how will the government monitor and enforce regulatory oversight of the bank due-
diligence efforts required by FATCA and its implemntation, including (i) by whom (ii) how, (iii) using what
standards such efforts will be evaluated; (ss) what penalties exist and what penalties does the government
intend to establish for failure to adhere to standards indicated in (rr); (ww), what steps have been undertaken
to assess regulatory changes to federal institutions at the provincial and territorial levet that would be
required as a result of FATCA or any IGA;
The CRA is the federal agency responsible for administering tax, benefits, and related programs, and to ensure
compliance on behalf of governments across Canada. As the administrator of Canada's tax laws, the CRA would be
responsible for monitoring and enforcement of any implementing legislation that is enacted to implement the due
diligence and reporting requirements in Canada for Canadian financial institutions under an IGA. The impli.cations of
FATCA in Canada will depend on the outcome of negotiations between Canada and the u:s. If an agreement to
implement FATCA is reached with the U.S, the agreement would be made public and require Parliamentary approval
for implementation .
. (zz) has the government assessed whether FATCA and its implementation would require changes to the ways
in which tax information is currently shared with the US;
With regards to the information exchange components of an IGA, Article XXVII of the Canada-U.S. tax treaty
authorizes the exchange of information for tax purposes, including on an automatic basis.
(aaa) what has the government sought, or does the government plan to seek from the US, in terms of
reciprocal information sharing as a result of the FATCA or IGA negotiations, and what is the current status of
negotiations on this point;
As noted above, Canada's negotiations with the U.S. are based on the reciprocal version of the Model 1 IGA. Under
this approach, the U.S. would agree to provide Canada with enhanced and increased information on certain accounts
of Canadian residents held at U.S. financial institutions. A copy of the reciprocal version of the Model 1 IGA can be
accessed on the U.S. Treasury website at http://www.treasury.gov/resource-center/tax-
policy/treaties/Pages/FATCA. as px.
(bbb) what measures are in place to ensure that no privacy laws or policies are violated in any transfer of
information contemplated in (aaa); and
With regards to the information exchange components of an IGA, Article XXVII of the Canada-U.S. tax treaty
authorizes the exchange of information for tax purposes, including on an automatic basis. lt includes to
protect confidentiality and ensure that information is used solely for the purpose of tax administration.
(ccc) by what process(es) and on what dates will any IGA and its enacting legislation be vetted for
compliance with the (i) Constitution Act, 1867, (ii) Canadian Charter of Rights and Freedoms, (iii) Canadian
Bill of Rights?
ln respect of the Government proposing legislation to implement an IGA in Canada, the Minister of Justice is required
under section 4.1 of the Deparlment of Justice Act to examine ali government legislation introduced in or presented to
the House of Gommons by a minister of the Crown for inconsistency with the Charter of Rights and Freedoms and to
report any inonsistency to the House of Gommons.
Office of the Superintendent of Financial Institutions (OS FI)
This question is not applicable to the Office of the Superintendent of Financial Institutions.
6/6
INQUIRY OF MINISTRY
DEMANDE DE RENSEIGNEMENT AU GOUVERNEMENT
PREPARE IN ENGLISH AND FRENCI 1 M:'\RKING ''ORIGINAL TEXT" OR "TRANSLATION"
PRPARER EN ANGLAIS ET EN FRANAIS EN INDIQUANT "TEXTE ORIGINL" OU "TRADUCTION"
QUESTION NO.iNDE LA QUESTION BY 1 DE DATE
Q-121 Mr. Hsu (Kingston and the Islands)
QUESTION
Paul Calandra
PRINT NAME OF SIGNA TORY
INSCRIRE LE NOM DU SIGNATAIRE
October 25, 2013
. -- --- - . - SIGNATURE
MINISlER OR SECRETARY
MINISTRE OU.,sCRTAIRE P.t1RLEMENTAIRE
With regard to the implementation of the Foreign Account Tax Compliance Act (FATCA): (a) what steps
has Canada undertaken to complete an lnter-Governmental Agreement (IGA) with the United States; (b)
with what type of legal instrument will the government enact a FATCA implementation agreement; (c) will
the government bring an IGA before Parliament and, if so, in what form; (d) what steps are in place ta
ensure parliamentary review of an IGA; (e) what studies have been undertaken asto whether an IGA can
be implemented as an interpretation of the existing double tax treaty; - See full text of the question
attached.
REPL Y i RPONSE
ORIGINAL TEXT
TEXTE ORiGINAL
lRf,NSLATION D
TAADUCTION
With regard to the implementation of the Foreign Account Tax Compliance Act, the Privy Cou neil Office
responds that the information requested is withheld in accorda nee with the principles of the Access to
Information Act.