The Foreign Account Tax Compliance Act (FATCA) was signed into U.S. law in March 2010. The objective of this legislation is to identify U.S. persons who may evade U.S. taxes by holding financial accounts, either directly or indirectly, outside of the U.S. To address privacy and regulatory concerns related to FATCA, Canada and the U.S. signed an Inter-Governmental Agreement (IGA) under the existing Canada-U.S. Tax treaty on February 5, 2014.
Canada has passed laws which require financial institutions, like Equitable Bank, to collect and annually report information about specified accounts identified as "reportable accounts" to the Canada Revenue Agency (CRA). Annual reporting for Canadian financial institutions will begin in 2015. Equitable Bank will meet all FATCA obligations, in accordance with local law.
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FATCA took effect on July 1, 2014.
Under U.S. tax law, you are considered a U.S. person if you are:
You may also be considered a U.S. person if you spend considerable time in the U.S. in one year or over a period of years.
Non-U.S. financial institutions, like Equitable Bank, will need to identify and report all financial accounts for specified U.S. persons.
If you have an existing account at Equitable Bank or are opening one, and there is an indication that you may be a U.S. person as described above, then we may ask you to provide additional information or complete a form to confirm your tax status.
The content above is intended to provide information only, and should not be construed as legal, financial or tax advice. If you're unsure about your U.S. tax status, or about how Canadian Tax Regulations related to FATCA might affect you, contact your tax advisor.