US CITIZENS LIVING OUTSIDE THE US
FATCA affects you in the following ways:
The accounts US citizens own at Canadian Financial Institutions will be automatically reported to the CRA, which will then report that information directly to the IRS.
The accounts owned by people born in the US are reportable, unless they can provide a certificate of loss of nationality, or a reasonable explanation as to why they do not possess one.
Renouncing US citizenship may be an option, but must be undertaken with caution in order to avoid penalties, tax, and the US tax on expatriation.
RENOUNCING US CITIZENSHIPRenouncing your US citizenship can be complex and intimidating. At Moodys Gartner Tax Law, our team will guide you through each step of the process, evaluating if renunciation is right for you, and if so, work with you to renounce the right way to avoid any potentially negative consequences. Click here to watch the Renunciation overview
Roy Berg (Witness), Testimony before Canadian House of Commons, Standing Committee on Finance Regarding Canadian Legislation Consequences to FATCA Legislation (May 15, 2014), available at https://www.youtube.com/watch?v=TtYjCcNc Uk.
Roy A. Berg, Canadian Challenge to FATCA, 23:9 CANADIAN TAX HIGHLIGHTS (2015), available at http://tax.moodysgartner.com/wp-content/uploads/Canadian-Tax-Highlights_Canadian-Challenge-to-FATCA_p.1-3.pdf
Roy A. Berg and Paul M. Barba, FATCA in Canada: Analyzing the Canadian Implementing Legislation’s Restriction on the Class of Entities subject to FATCA, 62:3 CANADIAN TAX JOURNAL 587 (2014), available at http://www.ctf.ca/CTFWEB/EN/Publications/CTJ Contents/2014CTJ3.aspx.
Roy A. Berg, FATCA in Canada: The “Cure” for a U.S. Place of Birth May Kill the Patient, CANADIAN TAX FOUNDATION NATIONAL CONFERENCE, Vancouver, BC (Dec. 1, 2014).
Roy A. Berg and Kim Moody, Is the Canadian FATCA Lawsuit a Pyrrhic War?, 2014 TAX NOTES TODAY 167-23 (Aug. 28, 2014), available at http://www.moodysgartner.com/is-the-canadian-fatca-lawsuit-a-pyrrhic-war/.
Roy A. Berg, FATCA in Canada: Is the Intergovernmental Agreement a “Good Deal?“, 2014 TAX TIMES 12 (June 27, 2014), available at http://www.moodysgartner.com/downloads/TaxTimes_FATCA_27June14.pdf.
Roy A. Berg, In FATCA-IGA-Land, a Canadian Trust Is a Bank, 13 STEP-INSIDE 5 (May 2014), available at http://www.step.ca/pdf/steplnside/si2014.05.15.May.pdf.
Roy A. Berg and Paul M. Barba, Leaked and Buried – Canada Puts FATCA Deal at Risk, 2014 TAX ANALYSTS WORLDWIDE TAX DAILY 63-3 (Apr. 2, 2014), available at http://services.taxanalysts.com/taxbase/fatca.nsf/Searchlndex/A3EE1200F13CCB4B 85257CAE0018B7D3?0penDocument.
Roy A. Berg, FATCA Deal Automates Reports to IRS, LEXPERT BUSINESS OF LAW (Apr. 1, 2014), available at http://www.lexpert.ca/magazine/article/fatca-deal-automates-reports-to-irs-2659/.
Roy A. Berg, IGA and Draft Legislation, 22 CANADIAN TAX HIGHLIGHTS 3 (Mar. 2014).
Roy A. Berg, Paul Barba, and Kim G.C. Moody, Report on Legislative Proposals Relating to Canada-United States Enhanced Tax Information Exchange Agreement, 2014 TAXNOTESTODAY 47-33 (Mar. 9 2014), available at http://www.mondaq.com/canada/x/298648/tax+authorities/Report+On+Legislative +Proposals+Relating+To+Canada+United+States+Enhanced+Tax+Information+Exchange+Agreement.
Aamir Mahboob, FATCA and the Fat Cats: Foreign Passthrough Payments and the Blocker Problem, 71 TAXNOTESINTERNATIONAL 113 (Sept. 16, 2013), available at http://www.moodysgartner.com/downloads/FATCA-Article.pdf.
Paul Barba, Updated IRS Streamlined Filing Program: Snowbirds Beware, TAX NOTESTODAY (Oct. 21, 2014) 2014 TNT 204-28, available at http://www.moodysgartner.com/updated-irs-streamlined-filing-program-snowbirds-beware/.
Roy Berg (Presenter), FATCA, the IGA, and Canadian Legislation: Impact on Private Canadian Trusts, Canadian Tax Foundation Annual National Conference, Vancouver, BC (Dec. 1, 2014).
Roy Berg and Paul Barba (Presenters), FATCA Hurdles Faced by Depository and Investment Entities, The Canadian Institute, Toronto, ON (Mar. 25, 2015).
Roy Berg (Presenter), Canadian Implementing Legislation and FATCA: Problems Ahead, 10th Annual International Estate Planning Institute, New York State Bar Association and STEP, New York, NY (Mar. 14, 2014).
In the News
Donalee Moulton, Way paved for CRA to share info with IRS, THE BOTTOM LINE (October 2015) (quoting Roy Berg), available at http://www.thebottomlinenews.ca/articles/797
Dave Popowich and Faisal Karmali, The Realities of Retirement Relationships, MORE THAN MONEY (Sept. 25, 2015) (interviewing Roy Berg), available at http://www.morethanmoneyradio.com/the-realities-of-retirement-relationships
Peter Menyasz, Canadian FATCA challenge fails first legal test, BLOOMBERG BNA’S DAILY TAX REPORT (Sept. 18, 2015) (quoting Roy Berg)
Neil Etienne, FATCA injunction dismissed, CANADIAN LAWYER/LAW TIMES (Sept. 18, 2015) (quoting Roy Berg), available at http://www.canadianlawyermag.com/legalfeeds/2893/atca-injunction-dismissed.html
Mary Teresa Bitti and Julius Melnitzer, Which will come first: A decision in the FATCA legal challenge or the first exchange of info?, FINANCIAL POST (Aug. 26, 2015) (quoting Roy Berg), available at http://business.financialpost.com/legal-post/which-will-come-first-a-decision-in-the-fatca-legal-challenge-or-the-first-exchange-of-info.
Mary Teresa Bitti, How new global tax rules could erode your financial privacy, FINANCIAL POST (Aug. 25, 2015) (quoting Roy Berg), available at http://business.financialpost.com/legal-post/how-new-global-tax-rules-could-erode-your-financial-privacy.
Kristen A. Parillo, Canada’s FATCA Guidance: Too Much Discretion Used? 2014 TAX NOTES TODAY 131-1 (Mar. 14, 2014) (quoting Roy Berg and extensively citing Berg, Barba, and Moody, Report on Legislative Proposals Relating to Canada-United States Enhanced Tax Information Exchange Agreement).
Stephanie Soong Johnston, Leaked Document Suggests Canada is Undermining FATCA Agreement with U.S., 2014 TAX NOTESTODAY 61-7 (Mar. 31, 2014) (quoting Roy Berg).
Stephanie Soong Johnston, U.S.-Born Canadians Challenge FATCA Agreement Constitutionality, 2014 TAX NOTES TODAY 156-2 (Aug. 13, 2014) (quoting Roy Berg).
Peter Menyasz, Canadian Draft Legislation Criticized for Narrow Definition of Financial Institution, BNA DAILY TAX REPORT (Mar. 13, 2014) (quoting Roy Berg).
Dean DiSpalatro, CRA May Ignore FATCA Rules, ADVISOR.CA (Mar. 25, 2014) (quoting Roy Berg) available at http://www.advisor.ca/tax/tax-news/cra-may-ignore-fatca trust-rules-147928.
Dean DiSpalatro, Canada’s FATCA Legislation Could Irk Uncle Sam, ADVISOR.CA (May 22, 2014) (quoting Roy Berg), available at http://www.advisor.ca/tax/tax-news/finance-bites-back-at-fatca-criticism-148790.
Canada-U.S. Tax Agreement Raises Some Concerns, CALGARY HERALD (May 27, 2014) (quoting Roy Berg), available at http://calgaryherald.com/business/canada-u-s-tax-agreement-raises-some-concerns.
Julius Melnitzer, Leaked Documents Show Canada ‘Intended’ Departure From FATCA Agreement with U.S., FINANCIAL POST (Mar. 26, 2014) (quoting Roy Berg), available at http://business.financialpost.com/legal-post/leaked-documents-show-canada-intended-departure-from-fatca-agreement-with-u-s.
Julius Melnitzer, Canada-U.S. Dual Citizens Could be Worse off if FATCA Lawsuit Succeeds, FINANCIAL POST ( Aug. 18, 2014) (quoting Roy Berg), available at http://business.financialpost.com/legal-post/canada-u-s-dual-citizens-could-be-worse-off-if-fatca-lawsuit-succeeds.
Julius Melnitzer, Canada’s Draft Legislation Undermines FATCA Agreement with U.S., FINANCIAL POST (Mar. 10, 2014) (quoting Roy Berg), available at http://business.financialpost.com/legal-post/canadas-draft-legislation-undermines-fatca-agreement-with-u-s.
Ajay Gupta, Offshore Enforcement to Remain Top U.S. Priority in 2015, 2014 TAX ANALYSTS WORLD WIDE TAX DAILY 240-8 (Dec. 15, 2014) (quoting Roy Berg).
American Citizens Abroad, Group Proposes U.S. Compliance Program for Nonresident Taxpayers, 2013 TAX ANALYSTS WORLD WIDE TAX DAILY 147-38 (July 19, 2013) (quoting Roy Berg).
Marie Sapirie, IRS Announces Third Offshore Voluntary Disclosure Program, 134 TAX NOTES 276 (Jan. 16, 2012) (quoting Roy Berg).
Marie Sapirie, IRS Announces Open-Ended Third U.S. Offshore Voluntary Disclosure Program, 65TAX NOTES INT’L 171 (Jan. 16, 2012) (quoting Roy Berg).
Shamik Trivedi, Proposed FATCA Regs to be Released in Early 2012, 133 TAX NOTES 1459 (Dec. 19, 2011) (quoting Roy Berg).