Canadian FIs should review their procedures for reporting under the CRS and FATCA as a result of updated guidance released by the CRA
Canadian financial institutions should review their procedures for reporting under the Common Reporting Standard (CRS) and Foreign Account Tax Compliance Act (FATCA) as a result of updated guidance released by the Canada Revenue Agency (CRA). The CRA released separate guidance revisions for each regime on April 20, 2020 that, among other changes, provide penalties of up to $2,500 per account where self-certifications are not collected on a timely basis. These penalties are effective January 1, 2021. In addition, the guidance clarifies the self-certification Tax Identification Number (TIN) requirements, introduces new CRS due diligence procedures, and addresses the FATCA reporting requirements where a self-certification is not received.
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