18 June 2015 STEP Roundtable Q. 17, 2015-0572191C6

Text of Severed Letter

Principal Issues: Given that the deadline for 2014 information exchange has already passed, can the CRA provide any comments on how the information exchange procedures / obligations has been proceeding?

Position: Response provided by CPB - General comments provided.

Reasons: See below.

STEP CRA Roundtable - June 18 2015

Question 17. Update on FATCA information exchange

Articles 2 and 3 of the Agreement between the Government of Canada and the Government of the United States of America to Improve International Tax Compliance through Enhanced Exchange of Information under the Convention between Canada and the United States of America with Respect to Taxes on Income and on Capital (the "IGA") sets out the timing of when information must be provided by a Canadian Financial Institution. Paragraph 12.29 of the CRA's publication Guidance on enhanced financial accounts information reporting nicely lays out the information deadline days. Given that the deadline for 2014 information exchange has already passed, can the CRA provide any comments on how the information exchange procedures / obligations has been proceeding?

CRA Response

Financial institutions (FIs) are required to file Part XVIII information returns on certain accounts of U.S. persons annually, starting with the 2014 calendar year, pursuant to Part XVIII of the Income Tax Act. Paragraph 12.29 of the CRA Guidance refers to the information that is required in the Part XVIII returns. The deadline for FIs to file Part XVIII returns with the CRA for the 2014 year was May 1, 2015. The CRA has received the returns and is preparing for the information exchange to take place before the end of September 2015.

FIs that do not meet their reporting obligations under Part XVIII may be subject to penalties and interest and may be considered non-compliant. Any FI that is required to file Part XVIII returns for the 2014 year, but has not done so, should file immediately. More information, including filing instructions, can be found on the CRA website at the following links:

http://www.cra-arc.gc.ca/tx/nnrsdnts/nhncdrprtng/menu-eng.html
http://www.cra-arc.gc.ca/tx/nnrsdnts/nhncdrprtng/menu-fra.html

John Bogdan (for CPB)
2015-057219