On 16 September 2015, the Federal Court of Canada denied a request for an injunction to prevent the collection and disclosure of Foreign Account Tax Compliance Act (FATCA) information to the United States regarding American citizens living in Canada.
Pearse Trust Blog
An updated Double Tax Agreement (DTA) between Canada and New Zealand came into force on 26 June 2015. The new agreement will generally lower withholding tax (WHT) on dividends, interest and royalties between the two countries and has been welcomed by investors in both countries. The changes will begin to take effect from 1 August 2015.
In what appears to be the first challenge to the US Foreign Account Tax Compliance Act (“FATCA”), lawyers for Gwen Deegan of Toronto and Virginia Hillis of Windsor, Ontario say that FATCA exposes their clients 'to a deprivation of their liberty and security of the persons', in violation of Canadian Constitutional rights. FATCA applies to all “US persons”, which in itself is an expansive test and captures many groups of people that may not even realise they are “US persons".
Fundy Settlement v Canada [2012 SCC 14] is a landmark case which used a test in order to put to rest any doubts which Trust Administrators might have in connection to the residence of a Trust for Tax purposes.