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FATCA under fire from tax experts & Canadian citizens

A new American law set to kick in next year will demand Canadian banks hand over what in our country is private information, on clients with an American connection. Washington wants to snare tax evaders but a chorus of people in Canada say the wrong people will pay. Today, we look at the panic and anger over what's known as...
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A new American law set to kick in next year will demand Canadian banks hand over what in our country is private information, on clients with an American connection. Washington wants to snare tax evaders but a chorus of people in Canada say the wrong people will pay. Today, we look at the panic and anger over what's known as FATCA.



As innocuous as that little clip may sound, it's helping to send many Americans living in Canada into a panic. Some are even ditching their passports. The informational video, put out by the IRS, is about The Foreign Account Tax Compliance Act -- or FATCA.

It's U.S. legislation that requires financial institutions around the world to report the financial details of any clients with American citizenship or other connections to the U.S.

Representatives of the big five banks will be at meetings of the Canadian Institute today and tomorrow to discuss how they plan to comply with the FATCA.

As part of our Project Money, and to explain why some Americans are renouncing their US citizenship, we reached Allison Christians, the H. Heward Stikeman Chair in Tax Law at McGill University in Montreal. She has consulted with the Federal Liberal party on FATCA. Allison Christians was in our Montreal studio.

Ruth Freeborn was born in Oklahoma and came to Canada in the 1980s. She's lived here ever since. She was a dual citizen for decades. But when she heard how FATCA might affect her, she renounced her U.S. citizenship in September. She was in Kingston, Ontario.

The Canadian Bankers Association also has concerns about the FATCA legislation. It's expected to come into effect in July. Marion Wrobel is the Canadian Bankers Association's Vice President of Policy and Operations. He was in our Toronto studio.


We requested an interview with Finance Minister Jim Flaherty this morning,
but so far we have not heard back from him.


Have thoughts you want to share on FATCA and how this effects people with US/Canadian citizenship?

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This segment was produced by The Current's Pacinthe Mattar and Marc Apollonio.

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