As I have previously discussed, the U.S. government has shown a strong commitment to investigating violations and enforcing compliance with the Foreign Account Tax Compliance Act (FATCA). The global anti tax-evasion law that requires foreign financial institutions to reveal account information of wealthy U.S. citizen owned accounts, requires international corporation to effectively enforce. Since refusal to cooperate with the U.S. in FATCA enforcement could result in inability to participate in U.S. markets, participation has been widespread across the globe. However, concern over Canada’s commitment to enforcement has arisen due to recent staff and budget cuts that affect Canada’s Revenue Agency.
See Robert W. Wood, Armed With FATCA, IRS Hunts Offshore Tax Evaders, While Canada Eases Up, Forbes, Sept. 22, 2014.
Special thanks to Brian Cohan (Attorney at Law, Law Offices of Brian J. Cohan, P.C.) for bringing this article to my attention.
