CRS-FATCA RELATED REGULATORY OBLIGATIONS

National Bank: A partner in the fight against tax evasion

Key dates

  • July 1, 2017: over 100 countries including Canada adopted an international standard, the Common Reporting Standard (CRS), which has been incorporated into Canada's Income Tax Act.
  • January 1, 2020: self-certification must be completed before opening an account for individuals and businesses.
  • January 1, 2021: in the absence of valid self-certification, the Bank is required to declare you a U.S. resident or a resident of another country if evidence of foreign residence is detected. If you fail to provide a tax identification number (TIN), you could receive penalties of $100 to $500 from the Canada Revenue Agency (CRA).

What are your obligations?

You must now provide Canadian financial institutions with information about your tax residence and U.S. citizenship.

Consider consulting an independent tax specialist if you need help to clarify your situation.

Online or in person: update my residency for tax purposes

* If you are a resident of a country other than Canada, please ensure that you have the Tax Identification Number (TIN) for all your countries of residence on hand for tax purposes.

How to make the update online?

  1. Access your online bank;
  2. Click on your name (at the top of the page on the right);
  3. Click Edit under Tax Information (at the bottom of the page);
  4. Complete the requested information and click on Save.

How to make the update in person?

  1. Read the self-certification document;
  2. Make an appointment with your advisor.

To learn more, click here.

Enhanced International Information Reporting

In March 2010, The U.S. Treasury Department signed into law the “Foreign Account Tax Compliance Act” (known as FATCA), to enable U.S. tax authorities to counter tax evasion by U.S. taxpayers (U.S. Persons) who hold accounts outside the United States.

This U.S. law has implications for a wide range of financial products including depository and custodial accounts, regardless of their currency, whether held by individuals or entities.

The term U.S. Person means:

  • a U.S. citizen or resident individual,
  • a partnership or corporation organized in the United States or under the laws of the United States or any State thereof,
  • a trust if
    • a court within the United States would have authority under applicable law to render orders or judgments concerning substantially all issues regarding administration of the trust, and
    • one or more U.S. persons have the authority to control all substantial decisions of the trust, or
  • an estate* of a decedent that is a citizen or resident of the United States. 

FATCA Intergovernmental Agreement between Canada and the U.S. 

On February 5, 2014, Canada and the United States signed an intergovernmental agreement (IGA) under the Convention between the United States of America and Canada to improve information exchange and to integrate the FATCA-related dispositions to the Canadian legislative framework.

 

This agreement is consistent with Canada’s support for the G-8 and G-20 commitments to develop a global standard for the automatic exchange of fiscal information.

On June 20th, 2014, Bill C-31, in which Part 5 enacts the IGA, received Royal Assent. The dispositions of this agreement are thus implemented through an amendment to the Canadian Income Tax Act (Part XVIII – Enhanced International Information Reporting) that provides Canadian financial institutions a local legislative framework on which to rely on for the application of FATCA related compliance procedures. 

The Canada Revenue Agency (CRA) is responsible for administering the legal framework.

Under the provisions of the Canadian Income Tax Act, effective July 1st, 2014, Canadian financial institutions are required to determine whether financial Accounts are held by U.S. Persons and annually report information on those accounts to the CRA.

Accounts held by U.S. Persons, Specified U.S. Persons (entities) and Passive non-financial non-U.S. entities controlled by one or more U.S. Persons are reportable to the CRA. 

Protection of personal information

Canadian financial institutions will report information on their U.S. account holders directly to the Canada Revenue Agency (CRA), which ensures that the collection and use of the information is consistent with Canadian Privacy Act. In addition, information exchanged between the CRA and IRS is protected by the provisions of the Convention between the United States of America and Canada with respect to taxes on income and on capital.

National Bank’s compliance to FATCA and registration with the IRS 

National Bank understands the importance of uncompromised ethics in ensuring respect for our clients and the communities we serve as well as compliance with laws and regulations. It will continue to comply with all laws and regulations applicable throughout the jurisdictions in which it conducts business activities.

National Bank related entities have also been registered with the IRS and were attributed a GIIN (Global Intermediary Identification Number). 

Global Identification Intermediary Numbers

Classification: Reporting Model I IGA
Entity Country GIIN Address
National Bank of Canada Canada EZIIA1.00000.LE.124 600 de la Gauchetière West, 4th Floor
Montreal, Quebec, H3B 4L2
National Bank of Canada - London Branch Royaume-Uni EZIIA1.00000.BR.826 71 Fenchurch Street, 11th Floor
London, EC3M 4HD
National Bank Life Insurance Company Inc. Canada EZIIA1.00015.ME.124 1100 Robert-Bourassa Blvd, 5th Floor, Montreal, Quebec, H3B 2G7
CABN Investments Inc. Canada EZIIA1.00005.ME.124 1100 Robert-Bourassa Blvd, 8th Floor
Montreal, Quebec, H3B 2G7
Innocap Global Investment Management Ltd. Malta EZIIA1.00009.ME.470 71 Tower road, Office 4
Sliema, SLM 1609
Innocap Investment Management Inc. Canada I1QKR8.99999.SL.124 1155 Metcalfe Street, 2th Floor
Montreal, Quebec, H3B 5G2
Natcan Trust Company Canada EZIIA1.00003.ME.124 1100 Robert-Bourassa Blvd, 12th Floor
Montreal, Quebec, H3B 2G7
National Bank Direct Brokerage Inc. Canada EZIIA1.00010.ME.124 1100 Robert-Bourassa Blvd, 7th Floor
Montreal, Quebec, H3B 2G7
National Bank Financial Inc. Canada EZIIA1.00006.ME.124 1155 Metcalfe Street, 5th Floor
Montreal, Quebec, H3B 4S9
NBF Inc. London Branch Royaume-Uni EZIIA1.00006.BR.826 71 Fenchurch Street, 11th Floor, London, EC3M 4HD
National Bank Financial Ltd. Canada EZIIA1.00007.ME.124 1155 Metcalfe Street, 5th Floor
Montreal, Quebec, H3B 4S9
National Bank Investments Inc. Canada EZIIA1.00004.ME.124 1100 Robert-Bourassa Blvd, 9th Floor
Montreal, Quebec, H3B 2G7
National Bank Trust Inc. Canada EZIIA1.00002.ME.124 600 de la Gauchetiere West, 28th Floor
Montreal, Quebec, H3B 4L2
NBC Global Finance Limited Irlande EZIIA1.00008.ME.372 Embassy House, Herbert Park Lane
Ballsbridge, Dublin, 4
NBCN Inc. Canada EZIIA1.00001.ME.124 130 King West Street, Suite 3000
Toronto, Ontario, M5X 1J9

Please note that National Bank will implement the required procedures while minimizing impact on its customer service. 

Useful links 

 

The above information is intended to provide general guidance only. These guidelines are not an exhaustive analysis of all provisions of the law, and should not be considered as legal, fiscal or financial advice. 

We recommend that you seek the advice of your tax advisor to better understand implications for you or for your business.

*Once the Bank receives a formal notification of the account holder’s death (a copy of the deceased's death certificate or will), the account that is held solely for the purposes of the estate will not be considered a financial account and will not be subject to FATCA-CRS regulations.