Enhanced financial account information reporting
These pages provide information for Canadian financial institutions and their account holders to help them understand the administrative aspects of the intergovernmental agreement between Canada and the U.S., signed on February 5, 2014.
In March 2010, the U.S. enacted the Foreign Account Tax Compliance Act (FATCA). FATCA would require non-U.S. financial institutions to report to the U.S. Internal Revenue Service (IRS) accounts held by U.S. persons.
Under the intergovernmental agreement, relevant information on accounts held by U.S. residents and U.S. citizens (including U.S. citizens who are residents or citizens of Canada) are instead reported to the Canada Revenue Agency (CRA). The CRA then exchanges the information with the IRS through the existing provisions and safeguards of the Canada-U.S. tax treaty.
Consistent with similar views expressed in IRS Notice 2014-33, calendar years 2014 and 2015 are regarded by the CRA as a transition period in connection with its administration of Part XVIII. With respect to any deficiency in this transition period, the CRA will take account of the extent to which a Canadian financial institution has made good faith efforts to comply with the requirements of Part XVIII.
Consistent with IRS Notice 2016-08, payments that are gross proceeds made by a reporting Canadian financial institution to a nonparticipating financial institution (NPFI) during the 2015 year may, but are not required to, be reported to the CRA.
For more information
Department of Finance Canada
- News Release
- Intergovernmental Agreement for the Enhanced Exchange of Tax Information under the Canada-U.S. Tax Convention
U.S. Internal Revenue Service
- Foreign Account Tax Compliance Act
- Classification of Taxpayers for U.S. Tax Purposes
- U.S. Citizens and Resident Aliens Abroad
- U.S. IRS Instructions for Streamlined Filing Compliance Procedures for Non-Resident, Non-Filer U.S. Taxpayers
Electronic mailing list
Subscribe to Enhanced financial account information reporting electronic mailing list to receive an email notice when new or updated information is posted to our website.
If you have any questions, please contact us.
- Date modified: