The United States and Canada announced on February 5, 2014, that they have signed an Intergovernmental Agreement (IGA) to improve international tax compliance and to implement the US Foreign Account Tax Compliance Act (FATCA). The IGA must be ratified under Canadian laws before it comes into force. The implementing legislation was released concurrently with the IGA and is expected to be introduced in Parliament over the coming months.
The IGA is a Model I Reciprocal Agreement, meaning that financial institutions in each country will report specific information to their own governments, which will then automatically exchange that information annually on a reciprocal basis.
The attached article provides an overview of the Canada - US IGA and discusses its scope and impact on Canadian institutions.