How the U.S. pulled off the great Canadian privacy giveaway


mentalfloss
+1
#1
How the U.S. pulled off the great Canadian privacy giveaway

For the first time in Canadian history, our federal government is preparing to provide a foreign government with sensitive personal financial information about hundreds of thousands of Canadians. It is doing so to stave off threatened economic sanctions, and is getting nothing in return.


The sad saga began with a U.S. attempt to root out offshore tax evasion through the Foreign Account Tax Compliance Act (FATCA), enacted by Congress in 2010. Under FATCA, all non-U.S. financial institutions, including Canadian banks, are to dig through their bank records for evidence of accounts owned by U.S. expatriates and others with ties to the United States. Once this evidence is uncovered, the banks are to send the account information directly to the U.S. Internal Revenue Service (IRS) so it can go after the alleged tax cheats.

When FATCA was first put in place, former Minister of Finance Jim Flaherty decried the U.S. legislation as an effort to make Canadian banks an enforcement arm of the IRS. The problem is that, unless Canada plays ball, the United States is threatening to shut down the Canadian financial industry by imposing punitive taxes on financial transfers between U.S. and Canadian banks. Faced with this threatened economic sanction, the Canadian government ultimately capitulated and proposes to implement FATCA by July 1, 2014. The proposed law, which is part of Bill C-31 before Parliament, will override Canadian privacy laws so that our tax authorities can transfer the account information to the IRS.

This move is unacceptable as it gravely threatens Canadian financial privacy.

The proposed law applies to a broad class of U.S. expatriates and Canadians who could now be subject to fines, interest penalties, criminal sanctions, and denial of entry into the United States. Under the proposed approach, Canadian banks will have to look to their records on birth places, residences, Social Insurance Numbers and other information to see if any “U.S. person” holds an account. “U.S. person” is a defined term that includes many more people in Canada than almost anyone realizes. It includes U.S. citizens and non-citizens with various personal or economic ties to the United States (for example, former green card holders now residing in Canada).

Canadian snowbirds who travel to the United States for part of each year may also be caught in the tax web if they are deemed to be U.S. persons under facts and circumstances tests. So-called ‘accidental Americans’, including Canadians with U.S. citizen parents who have never stepped foot in the United States, are also swept up in the net. Finally, any Canadians who jointly hold accounts with a U.S. person for family or business purposes will see their sensitive financial information shipped south of the border too.

All Canadian businesses that are partly owned by a “U.S. person” will also have their sensitive financial account information disclosed to the IRS. This includes confidential information that, if improperly revealed to competitor firms, could harm the ability of Canadian businesses to compete against U.S. firms. In light of recent disclosures surrounding U.S. state-sponsored corporate espionage, the Canadian business community should be yelling to the rooftops about this commercial confidentiality concern.

The proposed law to implement FATCA needs to be amended to account for these privacy concerns. Canada should only transfer data associated with U.S. persons who are not Canadian residents. This approach accords with longstanding practice and emerging global information exchange standards. The government should take immediate steps to ensure this standard is codified in the legislation currently in front of Parliament.

This move would prevent the great privacy giveaway and institute in its place a sensible rule for information exchange. It would safeguard the privacy rights of Canadians while enabling Canada to work co-operatively on a global scale to ensure that tax evaders – American, Canadian, or otherwise – do not have a safe haven anywhere.

How the U.S. pulled off the great Canadian privacy giveaway - The Globe and Mail
 
Goober
-1
#2
The US also has other countries that are providing the same data do they not?
 
relic
+2
#3  Top Rated Post
But maaaa, all the other kids are doin' it !! Christ ! Con brains must be a lot cheaper to produce, because they're all programed the same.
 
B00Mer
#4


Canada or Canadians have no backbone.. if they did they would stop this with nationwide protests..
 
Goober
#5
Quote: Originally Posted by B00MerView Post



Canada or Canadians have no backbone.. if they did they would stop this with nationwide protests..

Really
Do you think that this is only applicable to Canada. Wrong
Foreign Account Tax Compliance Act (FATCA)
 
B00Mer
#6
Quote: Originally Posted by GooberView Post

Really
Do you think that this is only applicable to Canada. Wrong
Foreign Account Tax Compliance Act (FATCA)

It's not just foreign accounts Goober.. Lockheed Martin, a US company handles Canada census.. Canadian privacy is being outsourced to the USA..

Don't think that the NSA hasn't gotten it's clause into the data collected.

Canada’s Census outsourced to Lockheed Martin | Global Research
 
Goober
+1
#7
Quote: Originally Posted by B00MerView Post

It's not just foreign accounts Goober.. Lockheed Martin, a US company handles Canada census.. Canadian privacy is being outsourced to the USA..

Don't think that the NSA hasn't gotten it's clause into the data collected.

Canada’s Census outsourced to Lockheed Martin | Global Research

Myself I am more concerned with what companies collect, share and how their protections sucks.
Not the Govt surveillance that bothers me, the companies.
And we all know how and where has access to this.
 
lone wolf
+2
#8
Meh ... your internet server has everything on you ... and WILL sell if the price is right
 
PoliticalNick
#9
If I were in charge I would have told the US to f*ck-off and responded to their imposed tariffs and taxes with even higher tariffs and taxes of my own. I think if we effectively doubled or tripled their cost for our oil and gas or just stopped shipping it at all they might see our point of view and be compliant. This constant capitulation to the arrogant b*stards down south by our present govt is ridiculous.
 
B00Mer
#10
Quote: Originally Posted by lone wolfView Post

Meh ... your internet server has everything on you ... and WILL sell if the price is right

Exactly, every email sent is saved and cached, every IP and website you surf is logged.. it's kinda scary when you think about it..

There really is no privacy.. I mean people can hack your webcam and watch you or take photos.. ( don't jerk off to Internet porn anymore )

Are Hackers Using Your Webcam to Watch You?
 

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