Canada’s FATCA IGA Is About Government Of Canada Turning Dual Citizens Over To The United States

John Richardson FATCA Interview

What the Canada U.S. FATCA IGA is NOT about

Canada’s FATCA IGA is NOT about information exchange. The United States does NOT exchange information under the FATCA IGAs.

Canada’s FATCA IGA is not about residency. After all the purpose of FATCA is to transfer information from a country where the person DOES actually reside (and is a tax resident) to a country where the person does NOT actually reside (but is deemed to be a tax resident).

What the Canada U.S. FATCA IGA IS about

Canada’s FATCA IGA IS about the Government of Canada surrendering its citizens to the United States (effectively stripping them of their rights as Canadian citizens).

Canada’s FATCA IGA is about assisting the United States in imposing worldwide taxation on Canadian citizens who actually live in Canada, are tax residents of Canada and pay full taxes in Canada. Transition Tax anyone? Do you feel GILTI today? What were you thinking by buying that Canadian mutual fund in Canada?

Canada’s FATCA IGA is NOTHING like the OECD Common Reporting Standard. In simple terms, under the CRS information is transferred from a country where the person does NOT live to a country where he does live.

Yes, Canada’s lawyers spent the week of January 28, 2019 to February 1, 2019:

1. Denying each of these obvious points; and

2. Arguing that Canada that Canada has a constitutional right to betray its citizens by turning them over to the United States.

Post 1 – February 17, 2019:

The U.S. claim of lifetime tax jurisdiction based ONLY on the fact of having been born in the United States

This is based on a post from March of 2015 which was about the number of so called “Accidental Americans” in the Eastern Townships of Quebec.

Let’s start by listening to the CBC interview with Ali Brunette.


Do these life long residents of the Quebec Eastern Townships (great ski country) seem like U.S. tax evaders to you?

Have a question? Contact John Richardson.


The Reality of U.S. Citizenship Abroad

My name is John Richardson. I am a dual citizen. I am a lawyer – member of the Bar of Ontario. This means that, any counselling session you have with me will be governed by the rules of “lawyer client” privilege. This means that:

“What’s said in my office, stays in my office.”

I am also a member of the American Citizens Abroad Professional Tax Advisory Council (PTAC). This is an advisory panel focused on assisting American Citizens Abroad in an FBAR and FATCA world.

The U.S. imposes complex rules and life restrictions on its citizens wherever they live. These restrictions are becoming more and more difficult for those U.S. citizens who choose to live outside the United States.

FATCA is the mechanism to enforce those “complex rules and life restrictions” on Americans abroad. As a result, many U.S. citizens abroad are renouncing their U.S. citizenship. Although this is very sad. It is also the reality.

2 thoughts on “Canada’s FATCA IGA Is About Government Of Canada Turning Dual Citizens Over To The United States

  1. Avatar Robert Klein says:

    After reading, “Canada has a constitutional right to betray its citizens by turning them over to the United States.” I am speechless. What nonsense.

  2. Avatar Nononymous says:

    FATCA is a rotten deal, and the IGAs should be overturned because of the unequal treatment meted out to dual citizens in Canada and other countries.

    However, some of the facts on the ground, in Canada:

    The US does not actually have the power to collect tax on non-US-source income earned by Canadian citizens (i.e. duals) resident in Canada. Nor does the US have the ability to collect any penalties it may impose for failure to file tax returns or FBAR forms. Under the IGA, Canada is passing on information about Canadian citizens to the US government – which is a very bad thing – but it is most definitely not assisting the IRS in imposing worldwide taxation on those citizens. Collection assistance is in fact forbidden by the tax treaty.

    A dual US-Canadian citizen living in Canada, with no US assets or income, is perfectly free to ignore all US tax compliance obligations, and will face no negative consequences for doing so. In fact the worst course of action for such a person is to begin filing.

    Furthermore, a close look at the CRA guidance on the FATCA IGA, issued to Canadian financial institutions, reveals a compliance strategy that depends almost entirely on customer self-certification, with no attempt to validate answers to citizenship questions. Banks, essentially, need only make the most minimal efforts to identify US persons. What this means in practical terms is that anyone who does not wish to have their account information sent to the US simply needs to answer “no” on any online form asking about US citizenship or tax residency, and they will not be challenged.

    The IGA needs to be overturned because it violates the Charter rights of Canadians. But before and after that happens, dual citizens in Canada need to know that the US is powerless to tax them – in fact it doesn’t even try – and that their banks will be happier not knowing about their US citizenship. The bigger enemy, at present, are tax advisors who lure Canadians into needless and expensive US tax compliance. (If the IRS really cared about finding and taxing US citizens in Canada, it would not have agreed to exclude RRSP/RESP/RDSP/TFSA etc. accounts from FATCA reporting, now would it?)

Leave a Reply

Meet Tax Experts At TaxConnections...