1.6 million Canadian banking records shared with IRS


B00Mer
#1
1.6 million Canadian banking records shared with IRS

CRA now transferring 600,000 banking records per year under controversial information sharing agreement



The Canadian government has shared more than 1.6 million Canadian banking records with the U.S. Internal Revenue Service since the start of a controversial information-sharing agreement in 2014, CBC News has learned.

In 2016 and again in 2017, the Canada Revenue Agency provided the IRS with information on 600,000 Canadian bank accounts each year. That's a sharp increase from the 300,000 records shared in 2015 and the 150,000 records shared in 2014, the year the sharing began.

However, that doesn't necessarily correspond to the number of people affected. Some people may have more than one bank account, while some joint accounts could have more than one account holder — including people who don't hold U.S. citizenship.

Among the items of Canadian bank account information being shared with the U.S. are the names and addresses of account holders, account numbers, account balances or values, and information about certain payments such as interest, dividends, other income and proceeds of disposition.

The information transfer is the result of a controversial information sharing agreement between Canada and the U.S. negotiated in the wake of the American government's adoption of the Foreign Account Tax Compliance Act (FATCA). The act, adopted in a bid to curb offshore tax evasion, obliges foreign financial institutions to report information about accounts held by people who could be subject to U.S. taxes.

The Canadian government argued that negotiating the information-sharing agreement would be better than forcing Canadian banks to deal directly with the IRS. Under the agreement, Canadian financial institutions send information on accounts held by clients with U.S. indicia (such as the account-holder being born in the United States) to the CRA; once a year, the CRA then forwards the information to the IRS.



In return, the IRS is supposed to send the CRA information about U.S. bank accounts held by Canadians. The CRA, however, has repeatedly refused to reveal how many records, if any, it has received from the IRS as a result of the agreement.

Nor does the CRA automatically notify Canadian account holders when their information is transferred to the U.S., said CRA spokesman Etienne Biram.

"There is no legislative requirement to disclose this information," he wrote. "However, if requested by a taxpayer, the CRA will confirm whether information relating to a particular individual or entity has been reported and provided to the United States of America under FATCA."

The CRA said the increase in the number of records transferred from one year to the next was expected because certain financial accounts did not have to be reported during the first two years of the agreement.

The revelation that 1.6 million records have been shared with the U.S comes as the Federal Court of Canada prepares to hear a constitutional challenge of the information-sharing agreement next week in Vancouver.

Those challenging the agreement argue that it violates sections 7, 8 and 15 of Canada's Charter of Rights, which protect Canadians from violations of their right to life, liberty and security, unreasonable search and seizure and discrimination against those who hold U.S. as well as Canadian citizenship.

In its submission to the court, the plaintiffs argue that some of the people whose banking records have been shared with the IRS may not be subject to U.S. taxes.

The government, however, presents the information-sharing agreement as the lesser of available evils and an attempt to mitigate the potential impact of FATCA, which included a potential 30 per cent withholding tax on institutions that didn't comply.

"There were potentially severe consequences to the Canadian financial sector, its customers and investors, and to the Canadian economy as a whole if Canadian financial institutions were unable or unwilling to comply with FATCA," wrote the government in its submission to the court.

"Canada sought to avoid those consequences and at the same time obtain less burdensome compliance rules for Canadian financial institutions and their customers, and additional information from the United States for Canadian tax compliance purposes."

The government argues the deal doesn't violate any charter rights — and that even if it does, it is a reasonable limit on those rights given what was at stake. It also points out that close to 100 countries have negotiated similar deals with the U.S. in the wake of FATCA.

Stephen Kish is a member of the Alliance for the Defence of Canadian Sovereignty, which mounted the legal challenge. He questioned how many of those records should have been shared.

"It's a huge number of accounts. What our lawyers are trying to find out is how many of those accounts were those of Canadian citizens, how many of those accounts were, in fact, U.S. persons, how many of those accounts should not have been sent because they didn't achieve the correct account balance."

Conservative Revenue Critic Pat Kelly said sharing banking records with the IRS has increased the number of Canadian residents at risk of being hit by the repatriation tax signed into law by U.S. President Donald Trump in December 2017. The tax has hit thousands of Canadian residents with U.S. or dual citizenship and a company incorporated in Canada.

"The information sharing agreement ... helps facilitate giving the IRS a target list in Canada," he said. "The Canadian government has to respect Canadians' privacy and be aware of all of these consequences."

NDP Revenue Critic Pierre-Luc Dusseault said the CRA should proactively notify Canadian bank account holders when information about their accounts is transferred to the U.S.

"The CRA should do its job of informing their citizens, the taxpayers of Canada that they are taking their personal banking information and transferring it to a foreign country. This is the bare minimum and it shows again the lack of transparency of this government."

https://www.cbc.ca/news/politics/tax...nada-1.4988135
 
B00Mer
#2
You're Fukked now Walter..

You can't hide your millions from Uncle Sam now..
 
taxslave
+2
#3  Top Rated Post
Definately getting harder to keep your hard earned money out of the hands of thieves.
 
B00Mer
#4
Quote: Originally Posted by taxslave View Post

Definately getting harder to keep your hard earned money out of the hands of thieves.

LOL no kidding..

You have to start stuffing the mattress
 
MHz
#5
Quote: Originally Posted by B00Mer View Post

LOL no kidding..

You have to start stuffing the mattress

Are you promoting becoming a tax cheat? I'm pretty sure the rich people have 'hiding' covered already.
 
B00Mer
+2
#6
Quote: Originally Posted by MHz View Post

Are you promoting becoming a tax cheat? I'm pretty sure the rich people have 'hiding' covered already.

Shut The Fukk Up Moron
 
Danbones
#7
Are you talking to your self again boomer?


...drug check time, and NOT crossing a border?



Tightening the net on those who break or bend tax laws

Canada has one of the highest voluntary tax compliance rates in the world, but there’s still a small minority choosing not to pay what they owe.

Stopping tax cheating: Better data, better approaches, better results
Canadians expect the CRA to protect the integrity of the tax system. Thanks to recent investments from the past three federal budgets, the CRA is using better tools and better approaches, which are leading to better results to improve the integrity and fairness of our tax system.

These tools help the CRA collect and improve the analysis of valuable information and allows the CRA to work smarter and more effectively to ensure all Canadians follow the rules.

A large array of compliance tools such as enhanced information sharing and collaboration with international and domestic partners, help the CRA identify high risk cases for audit and investigate cases of tax evasion. Some of these new tools and collaborative efforts that lead to better data and approaches are described below.
https://www.canada.ca/en/revenue-age...o-borders.html

I guess they feel that if they can catch the big international tax thieves and money launderers, the load will be less on the little people.

Report a lead on suspected tax cheating in Canada – Overview
https://www.canada.ca/en/revenue-age...-overview.html
 
MHz
#8
Bloomer is pissed about being called a psycho because he can't refute any of the points. I should start a poll about what was the tipping point, I tend to think his parents and other tormentors were also the same personality wise. Oh well, they get 'fixed' before the perfected version of this world starts.
 
B00Mer
+1
#9
You two should get a room.. Danboner & MegaHitlerz
 
DaSleeper
+1
#10
Quote: Originally Posted by B00Mer View Post

You two should get a room.. Danboner & MegaHitlerz

The forum suck puppets...... Typo? Naaaaah
 
MHz
#11
Very, very pissed. lol
I get the feeling it would be the richest rather than the poorest.
 
taxslave
+1
#12
Quote: Originally Posted by MHz View Post

Are you promoting becoming a tax cheat? I'm pretty sure the rich people have 'hiding' covered already.

It is not cheating. It is protecting what is yours from theft.
 
Twin_Moose
+2
#13
No it isn't cheating as long as it is accounted for in your Income tax, there is nothing in law that states it must be made available for additional tax on interest accrued. We call it URSP around here Ukrainian retirement savings pillow

I do believe this is the first step to allow the Gov. to go to digital money, study your bank accounts to see how much cash you are using. Monitor it until the majority are debiting and credit carding before pulling the trigger.
 
petros
+1
#14
Targeting eBay and Amazon sellers. Some people it's their livelihood and until now, tax free. It's also an easy way to launder money.
 
Jinentonix
+1
#15
Quote: Originally Posted by Danbones View Post

Are you talking to your self again boomer?

...drug check time, and NOT crossing a border?
Tightening the net on those who break or bend tax laws
Canada has one of the highest voluntary tax compliance rates in the world, but there’s still a small minority choosing not to pay what they owe.
Stopping tax cheating: Better data, better approaches, better results
Canadians expect the CRA to protect the integrity of the tax system. Thanks to recent investments from the past three federal budgets, the CRA is using better tools and better approaches, which are leading to better results to improve the integrity and fairness of our tax system.
These tools help the CRA collect and improve the analysis of valuable information and allows the CRA to work smarter and more effectively to ensure all Canadians follow the rules.
A large array of compliance tools such as enhanced information sharing and collaboration with international and domestic partners, help the CRA identify high risk cases for audit and investigate cases of tax evasion. Some of these new tools and collaborative efforts that lead to better data and approaches are described below.
https://www.canada.ca/en/revenue-age...o-borders.html
I guess they feel that if they can catch the big international tax thieves and money launderers, the load will be less on the little people.
Report a lead on suspected tax cheating in Canada – Overview
https://www.canada.ca/en/revenue-age...-overview.html

Yeah, the CRA should take a good long hard look at itself. Several years ago I was the victim of a vicious and quite frankly, fraudulent audit. Basically, they made like they did an audit and that I signed off on the amounts. The problem is two-fold. 1)I never sat with anyone from CRA to go through my financial records. 2) At least one of the income amounts I allegedly signed off on clearly does not belong to me. Wrong name, wrong address, wrong f*cking city even. Another good one is them trying to ding me for RHSP income. Which is hilarious because I owned my first home before there was such a thing as an RHSP, so I wouldn't have even qualified for an RHSP. Been fighting with them for at least a decade now as they continue charging interest. At one point a couple of years ago I thought maybe I was finally making some headway but nope, they're sticking to their story.
I think maybe it time to call the RCMP and file a charge of fraud and forgery against the CRA.
 
B00Mer
#16
Quote: Originally Posted by Jinentonix View Post

Yeah, the CRA should take a good long hard look at itself. Several years ago I was the victim of a vicious and quite frankly, fraudulent audit. Basically, they made like they did an audit and that I signed off on the amounts. The problem is two-fold. 1)I never sat with anyone from CRA to go through my financial records. 2) At least one of the income amounts I allegedly signed off on clearly does not belong to me. Wrong name, wrong address, wrong f*cking city even. Another good one is them trying to ding me for RHSP income. Which is hilarious because I owned my first home before there was such a thing as an RHSP, so I wouldn't have even qualified for an RHSP. Been fighting with them for at least a decade now as they continue charging interest. At one point a couple of years ago I thought maybe I was finally making some headway but nope, they're sticking to their story.
I think maybe it time to call the RCMP and file a charge of fraud and forgery against the CRA.

How did you deal with all that pain and suffering, stress and BS??

Hope you're okay and won the battle..
 
Jinentonix
#17
Quote: Originally Posted by B00Mer View Post

How did you deal with all that pain and suffering, stress and BS??
Hope you're okay and won the battle..

The stress was killing me. It still is. I've even had long phone conversations with the Minister of Revenue, to no avail.
What's really pissing me off about it though is you only have 5 years from the date of an audit to file notice that you're challenging it. They didn't tell me until after 5 years was up. Seriously, I had absolutely ZERO idea I was even being audited until someone from the CRA showed up at my new address less than two months after moving here, and more than 5 years after the audit. Which also begs the question, why they didn't show up at my previous address with the information, an address I lived at for YEARS.
 
B00Mer
#18
Quote: Originally Posted by Jinentonix View Post

The stress was killing me. It still is. I've even had long phone conversations with the Minister of Revenue, to no avail.
What's really pissing me off about it though is you only have 5 years from the date of an audit to file notice that you're challenging it. They didn't tell me until after 5 years was up. Seriously, I had absolutely ZERO idea I was even being audited until someone from the CRA showed up at my new address less than two months after moving here, and more than 5 years after the audit. Which also begs the question, why they didn't show up at my previous address with the information, an address I lived at for YEARS.

Trudeau doesn't want to part with hard working Canadians money.. he's too busy giving it away to terrorist and big corporations.