On Monday, February 10, 2014, we posted US Signed 22 FATCA Agreements – Unimpeded By Republicans!, where we discussed that the Treasury Department announced February 5, 2014 Canada and Hungary to implement the Foreign Account Tax Compliance Act, or FATCA, in an effort to discourage offshore tax evasion.

The agreement is of the Model I type under which Canadian banks will report the affairs of their American clients to the Canada Revenue Agency (CRA). The CRA will then forward the information annually to the United States Internal Revenue Service.

This arrangement is similar to that adopted by the five main European countries early in 2012. It also includes reciprocal information exchange provisions under which United Read More