The U.S. is threatening a 30 per cent withholding tax vs. Canadian Banks

Lillian Wydja

OBAMA WANTS MONEY AND NOW HE WANTS ANY PERSON WHO WAS BORN AN AMERICAN, and even their children to pay taxes to the US government.

July 2, will be the start of Canadian Banks being forced to send files on anyone who has any connection to the US to send their files to the IRS.

When Canada’s banks reopen for business on July 2, they will begin formally operating (against their will) as informants for the United States Internal Revenue Service — the IRS.
Financial institutions in Canada will be required to ask all new and existing clients opening a new account questions such as where they were born, and possibly where their parents were born.
Those who indicate they have a connection to the U.S. will have their files sent to the Canada Revenue Agency — which will automatically pass them along to the IRS.
Canadian citizens who decline to answer the new set of questions could have their personal banking information passed along to Uncle Sam to determine if they are a “U.S. person.” Or, the bank could refuse to open an account for those who refuse to answer the questions.
All U.S. citizens and “resident aliens” (green card holders) are required to file U.S. taxes every year — regardless of where they live. Eritrea is the only other country in the world with a similar law.
More of a surprise to some is that the U.S. automatically confers citizenship to the children of U.S. citizens, even if they are born abroad, and with that comes the obligation to file taxes.
The banks, and former federal finance minister Jim Flaherty complained bitterly to the U.S. about FATCA in an effort to obtain an exception for Canada — but to no avail.
The U.S. is threatening a 30 per cent withholding tax against any financial institution deemed “non-compliant,” under FATCA. The Canadian government said that “could have significant negative impacts on the Canadian economy.”
After lengthy negotiations, Canada eventually signed an agreement with the U.S. and passed its provisions into law in the most recent Budget Implementation Act.
Experts say the requirement for banks to handle the files of Canadians with dual U.S. citizenship differently than other clients could violate the Canadian Charter of Rights and Freedoms, which protects Canadians from discrimination based on, among other things, “national or ethnic origin.”

http://www.cbc.ca/news/politics/fatca-tax-deal-forces-canadian-banks-to-send-info-to-irs-1.2690039

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