Canada: Updated FATCA and CRS guidance

Canada: Updated FATCA and CRS guidance

The Canada Revenue Agency (CRA) issued updated guidance under the FATCA and common reporting standard (CRS) regimes.

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Updates to the FATCA guidance include:

  • Updated reporting obligations of Canadian financial institutions, other than trusts, present in more than one partner jurisdiction
  • A definition of a “specified U.S. person” and “U.S. person”
  • Information added regarding acceptance of electronic signatures, voice recording, or digital footprint by financial institutions
  • Updated information regarding self-certification that must be obtained by financial institutions and the penalties associated with the failure to obtain a self-certification
  • Updated procedures for financial institutions when there is a subsequent change in circumstances as well as information as to what is considered a change in circumstance for an entity account
  • Updated information related to the validation of self-certifications, including information to be captured in the documents
  • Clarification of the review requirement for new credit card accounts for entities
  • Updated requirements for when an account must be reported if a self-certification is not obtained
  • Updated requirement that a reportable person who is a discretionary beneficiary of a trust considered as a passive non-financial entity (NFE) is not required to be reported until it receives a distribution from the trust or intends to exercise its vested rights in the trust property
  • Updated requirement for trusts that control 25% or more of a passive NFE to report all natural persons who are controlling the trust and are reportable persons
  • Descriptions added for filer categories to be reported on the Part XVIII Information Return
  • Information added with regard to reporting accounts without a U.S. tax identification number (TIN) for 2020 and future calendar years

Updates to the CRS guidance include:

  • Reporting obligations of Canadian financial institutions, other than trusts, present in more than one partner jurisdictions
  • Information related to the self-certification that must be obtained by financial institutions in order to establish the status of an account holder and the penalties associated with the failure to obtain a self-certification
  • Statement added that financial institutions must consider the OECD’s risk analysis on the citizenship and residence by investment schemes while confirming reasonableness of self-certifications
  • Description added as to what is required in order for self-certifications in respect of pre-existing individual accounts and entity accounts to be considered valid
  • Additional information regarding what is considered a change in circumstance for entity accounts
  • Updated requirement that a reportable person who is a discretionary beneficiary of a trust considered as a passive NFE is not required to be reported until it receives a distribution from the trust or intends to exercise its vested rights in the trust property
  • Updated requirement for trusts that control 25% or more of a passive NFE to report all natural persons who are controlling the trust and are reportable persons


Read an April 2020 report [PDF 86 KB] prepared by the KPMG member firm in Canada

Read also an April 2020 report [PDF 193 KB] prepared by the KPMG member firm in Canada that focuses on self-certifications by Canadian financial institutions

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