Foreign Account Tax Compliance Act (FATCA)

New FATCA Regulations

Background:

United States President Barack Obama enacted the Foreign Account Tax Compliance Act into law in March 2010. The US government enacted FATCA primarily to identify US persons who are earning income outside of the United States. FATCA rules came into effect July 1, 2014.

FATCA requires non-US financial institutions, including banks, credit unions and mutual fund dealers from countries around the world to report information on US persons who have investments and accounts with these institutions. Canada, along with another 44 countries will report the required FATCA information to their respective country’s revenue agency. For Canadian financial institutions this means each institution will report FATCA information to the Canada Revenue Agency (CRA), which will, in turn, report to the US Internal Revenue Service (IRS).


How does this impact the credit union and our members?

The Credit Union is committed to protecting your privacy by keeping your personal information accurate, confidential, and secure. Our response to the Canadian tax regulations associated with FATCA will be held to the same high standard we use today to comply with British Columbian privacy laws and our commitment to member privacy.


Who is a US person?

  • A US citizen (including dual citizens)
  • A US resident alien for tax purposes (a lawful permanent resident of the US but not a citizen)
  • A US partnership or corporation
  • Any estate of a US person
  • Any trust if a court within the US has the power/authority to supervise the administration of the estate and/or if one or more US persons have the authority to control all substantial decisions of the trust


Does FATCA apply to businesses or just individuals?

  • FATCA applies to both businesses and individuals.


How can I get more information on FATCA?

You can find more FATCA information here:

Department of Finance Canada
Canada Revenue Agency
IRS

You may also want to seek legal or other professional advice relevant to your own financial situation.

 

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