FATCA related regulatory obligations
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
- Canadian Bankers Association
- Department of Finance Canada
- Canada Revenue Agency - Enhanced financial account information reporting
- U.S. Internal Revenue Service (IRS)
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.