If you freeze up when you see the acronym “FATCA,” you’re not alone. The tax compliance behemoth is a headache for many on Bay Street and beyond.
To help ease that burden and increase understanding of what’s required and when, the Investment Industry Association of Canada’s U.S. Tax Committee and its various working groups have been hard at work as FATCA’s been rolled out.
In his latest industry letter, IIAC president and CEO Ian Russell tallies up what the industry group has been doing on the FATCA front:
- The Committee worked with the CRA and IIROC to clarify the obligations of both introducing and carrying brokers to ensure that all account documentation, reporting and withholding requirements of FATCA and QI (Qualified Intermediary) aligned with responsibilities under existing carrying arrangements.
- The IIAC has produced tools for understanding the interconnected FATCA, QI and OECD Common Reporting Standard (CRS) requirements, and will build on these efforts.
- The IIAC has been fully engaged with U.S. authorities to discuss the operational challenges in implementing rules related to U.S. withholding requirements on payments derived from underlying U.S. securities.
- The IIAC OECD working group will solicit input from Member Firms on the global tax reporting requirements under the newly proposed Part XIX of Canada’s Income Tax Act.
- The IIAC and other financial services associations are working together to assist Canadian financial institutions and their customers prepare for the upcoming OECD CRS implementation. One of the first tools that has been developed is a joint FAQ document to help clients of Canadian FIs understand the CRS, and how it might affect them.