Article 4
Section 1
Administrative Policy
Guidance on the Canada-U.S. Enhanced Tax Information Exchange Agreement 20 July 2020
1.6 A Canadian financial institution that is in compliance with Part XVIII will not be subject to any U.S. withholding tax on U.S. source income...
Section 2
Administrative Policy
Guidance on the Canada-U.S. Enhanced Tax Information Exchange Agreement 20 July 2020
9.15 Due diligence must be carried out by obtaining a self-certification that allows the financial institution to determine whether the account...
Articles
Henry Chong, "Canada and FATCA", Tax Management International Journal, 2014, p. 527.
No direct reporting to IRS means no breach of privacy laws (p. 536)
The FATCA Regulations recognize that there will be differences between the...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Treaties - Canada-US Enhanced Tax Information Agreement Implementation Act [FATCA IGA] - Article 5 - Section 2 | 712 |
Candice M. Turner, "Answers to Practical FATCA Questions for Canadian Financial Institutions", Tax Management International Journal, Vol. 43, No. 8, August 8, 2014, p. 484.
Potential requirement to withhold re a recalcitrant account holder (p. 485)
...FATCA generally requires an FFI to withhold 30% on payments from...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 264 - Paragraph 264(1)(c) | 155 |
Article 5
Section 2
Articles
Alison Bennett, "Treasury OK with Canadian Stance on Listed Financial Institutions Under FATCA", Daily Tax Report (BNA), October 7, 2014.
U.S. Treasury accepts Canadian exclusion of personal investment companies and trusts from FATCA regime
The U S. is willing to accept Canada's...
Henry Chong, "Canada and FATCA", Tax Management International Journal, 2014, p. 527.
Exclusion of private trusts from Financial Institutions in ITA s. 263(2) (p. 537)
[S]ection 263(2) of the Act provides that the definition of...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Treaties - Canada-US Enhanced Tax Information Agreement Implementation Act [FATCA IGA] - Article 4 - Section 2 | 166 |
Section 1
1(j) Investment Entity
Administrative Policy
Guidance on the Canada-U.S. Enhanced Tax Information Exchange Agreement 20 July 2020
Real estate entities not investment entities
3.20 An entity that primarily conducts as a business investing, administering, or managing non-debt,...
1(l) Canadian Financial Institution
Administrative Policy
Guidance on the Canada-U.S. Enhanced Tax Information Exchange Agreement 20 July 2020
3.30 ... If the control and management of a partnership’s business takes place in Canada, the partnership is considered resident in Canada ......
1(r) Nonparticipating Financial Institution
Administrative Policy
Guidance on the Canada-U.S. Enhanced Tax Information Exchange Agreement 20 July 2020
4.15 No Canadian financial institution is an NPFI [and] ... no other financial institution is known to be classified as an NPFI by virtue of...
Annex 1
Section III
Paragraph A
Administrative Policy
20 August 2018 External T.I. 2018-0759081E5 - Canada-U.S. Enhanced TIEA
ITA s. 264(1)(b), when read in conjunction paragraph A of Section III of the Annex of the IGA, effectively provides that a Canadian financial...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 264 - Paragraph 264(1)(b) | account must be reported once it closes over $50,000 | 266 |
Section IV
Paragraph A
Administrative Policy
Candice M. Turner, "Answers to Practical FATCA Questions for Canadian Financial Institutions", Tax Management International Journal, Vol. 43, No. 8, August 8, 2014, p. 484.
Opening of 2nd account by holder of pre-existing account (p. 486)
The use of the Treasury Regulation definition of "preexisting obligation" is not...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Treaties - Canada-US Enhanced Tax Information Agreement Implementation Act [FATCA IGA] - Annex 1 - Section VI - Paragraph C | 163 |
Section VI
Paragraph C
Administrative Policy
Candice M. Turner, "Answers to Practical FATCA Questions for Canadian Financial Institutions", Tax Management International Journal, Vol. 43, No. 8, August 8, 2014, p. 484.
Exclusion of closed accounts from aggregation requirements (p. 486)
The IGA also requires reporting of accounts closed during the year. [fn 13:...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Treaties - Canada-US Enhanced Tax Information Agreement Implementation Act [FATCA IGA] - Annex 1 - Section IV - Paragraph A | 155 |
Subparagraph B(4)
Administrative Policy
Guidance on the Canada-U.S. Enhanced Tax Information Exchange Agreement 20 July 2020
4.9 Passive income ... will generally include income from the mere holding of property, such as:
- dividends;
- interest;
- income equivalent to...
Annex 2
Section III
Paragraph A
Administrative Policy
Guidance on the Canada-U.S. Enhanced Tax Information Exchange Agreement 20 July 2020
NCRFIs that qualify on the basis of a local ('Canadian) client base
Financial institution with a local client base
3.61 An NRCFI includes a...