Parliamentary answers on FATCA

INQUIRY OF MINISTRY DEMANDE DE RENSEIGNEMENT AU GOUVERNEMENT PREPARE IN ENGLISH AND FRENCH MARKING "ORIGINAL TEXT" OR "TRANSLATION"

PRÉPARER EN ANGLAIS ET EN FRANÇAIS EN INDJQUANT"TEXTE ORIGINAL" OU "TRADUCTION"

QUESTION NOJN° DE LA QUESTION BY 1 DE DATE Q-1272 Mr. Brison (Kings-Hants) October 28, 2013

REPL Y BY THE MINJSTER OF NATIONAL REVENUE RÉPONSE DE LA MINISTRE DU REVENU NATIONAL

Signed by the Honourable Kerry-Lynne D. Findlay PRINT NAME OF SIGNA TORY SIGNATURE

QUESTION

INSCRIRE LE NOM DU SIGNATAIRE Ml TER OR PARLIAMENTARY SECRETARY MINISTRE OU SECRÉTAIRE PARLEMENTAIRE

With regard to the United States (U.S.) Foreign Account Tax Compliance Act (FATCA): (a) when was the govemment first made aware of this legislation and how; (b) what steps has Canada taken . . since the legislation's introduction in the U.S., broken dawn by year; (c) during the consideration of this legislation in the U.S., did Canada make any representations to the U.S. government and if so, See full text of the question attached.

REPL Y 1 RÉPONSE ORIGINAL TEXT TEXTE ORIGINAL

TRANSLATION TRADUCTION D

With respect to the above-noted question, what follows is the response from the Canada Revenue Agency (CRA). The CRA has been asked to reply to Parts (k) to (n), (u), (v), (w)(i), (w)(iv), (x), (y), (z), (aa), (bb), (cc), (ee), (ft), (hh), (jj), (mm), (qq) to (ss) and (uu).

Parts (k) and (/): The number of financial institutions in Canada that will be impacted by the Foreign Account Tax Compliance Act (FATCA) will depend on the outcome of negotiations between Canada and the United States (U.S.). As negotiations between Canada and the U.S.are still ongoing, the number could not be calculated. ·

Parts (m) and (n): The number of non-financial entities in Canada that will be impacted by FATCA will depend on the outcome of negotiations between Canada and the U.S. As negotiations between Canada and the U.S. are still ongoing, the number could not be calculated.

Part (u): The CRA is responsible for tax administration and is not in a position to comment on Part (r).

Parts (v) and (w) (i): The implications of FATCA in Canada will depend on the outcome of negotiations between Canada and the U.S.

Part (x): The CRA does not have this information.

Part (y): The CRA does not have this information.

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Part (z): Any legal opinions that may have been sought by the CRA would be protected by solicitor client privilege.

Part (aa): Any legal opinions that may have been sought by the CRA would be protected by solicitor client privilege.

Part (bb): None have been addressed to the CRA.

Part (cc): None have been addressed to the CRA.

Part (ee): The CRA is not responsible for such negotiations and assists in an advisory capacity only.

Part (ff): Dep.artment of Finance officiais are responsible for tax policy and the on-going negotiations in connection with FATCA. Various officiais from the CRA have attended certain negotiation sessions in an advisory capacity.

Part (hh): The Minister of National Revenue has not personally played a role in the negotiations.

Part (iJ): The CRA is responsible for the administration of taxes and benefits in Canada and is taking appropriate action to be prepared if it is called upon to administer any outcomes in Canada that emerge from the on-going negotiations between Canada and the U.S. on an agreement to improve cross-border tax compliance through enhanced information exchange und er the Canada-United States Tax Convention.

Part (mm): The CRA is monitoring developments associated with FATCA and ensures that ali necessary officiais are briefed, as required. Information notes have been prepared as follows: U.S. Foreign Account Tax Compliance Act (FATCA) (COM 2013-00115); Foreign Account Tax Compliance Act (United States) (COM 2013-00662) and Foreign Account Tax Compliance Act (United States) (COM 2013-00953); Foreign Account Tax Compliance Act (United States) (COM2013-011 07); Foreign Account Tax Compliance Act (FATCA) (COM 2012-00935).

Part (qq): The CRA has consulted with and has been contacted by numerous individuals and groups to discuss the implications of FATCA and an lnter-Governmental Agreement (IGA) in Canada. The Government of Canada has been actively engaged with financial institutions. Financial institutions have made a number of submissions in light of the significant implications of developing new systems to comply with FA TCA or an IGA.

Part (rr): The CRA makes significant efforts to inform taxpayers and benefit recipients of the ir obligations and rights in connection with the prograrns it administers. However, the CRA does not administer FATCA. FATCA is a U.S. law administered by the-Internai Revenue Service (IRS). No intergovernmental agreement has been signed in connection with FATCA and no Canadian law has been enacted in connection with FA TCA. As su ch, the CRA can only provide limited guidance to Canadians such as alerting them to the on-going negotiations being led by Department of Finance or directing them, should they wish to contact the IR S.

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Part (ss): The CRA makes significant efforts tb inform taxpayers and benefit recipients of their obligations and rights in connection with the programsit administers: However, the CRA does not administer FATCA. FATCA is a U.S. law administered by the IRS. No intergovernmental agreement has been sigried in connection with FATCA and no Canadian law has been enacted in connectioh with FATCA. As such, the CRAcan only provide limited guidance to Canadians such as alerting them to the on-gojng negotiations being ·led by the Depart·ment of Finance or directing them, should they wish to contact the IRS.

Part (Uu): FATCA has global implications and has caused there to be discussions between a wide range of countries, including Canada. (i) Canada has discussed FATCA and other developmènts in relation to automatic ex change of information with OECD-memqer countries and other jurisdictions · including Germany, France, Finland, Denmark, Chile, the Netherlands, the United Kingdom and Spain. (ii) Generally speaking, at the level of subject-matter experts. (iii) Discussions occur on a regular basis and are expected to continue. (iv) Discussions often occur at OECD-sponsored events. (v) CRA officiais have participated in international discussions ori FA TCA and other matters related to the automatic exchange of information.

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INQUIRY OF MINISTRY . DEMANDE DE RENSEIGNEMENT AU GOUVERNEMENT

PREPARE rN ENGLISH AND FRENCH MARK.TNG TEXT" OR "TRANSLATION" PRÉPARER EN ANGLAIS ET EN FRANÇAIS EN INDIQUANT "TEXTE ORIGINAL" OU "TRADUCTION"

QUESTION NOJNO DE LA QUESTION BY 1 DE DATE Q-127 Mr. Brison (Kings-Hants)

QUESTION

Signed by Mr. Saxton PRINT NAME OF SIGNA TORY

INSCRIRE LE NOM DU SIGNATAIRE

October 28, 2013 REPL Y BY THE MINISTER OF FINANCE

RÉPONSE DU MINISTRE DES FINANCES

SIGNATURE MINISTER OR PARUAMENTARY SECRETARY MINISTRE OU SECRÊTAIRE PARLEMENTAIRE

With regard to the United States (U.S.) Foreign Account Tax Compliance Act (FATCA): (a) when was the government first made aware of this legislation and how; (b) what steps has Canada taken since the legislation's introduction in the U.S., broken dawn by year; (c) during the consideration of this legislation in the U.S., did Canada make any representations to the U.S. government and if so, (i) when, (ii) by whom, (iii) to whom, (iv) on what dates, (v)- See full text of the question attached. REPL Y 1 RÉPONSE

Finance Canada

Parts a) to v), w)(ii), x) to gg), kk), mm), oo) to vv), xx) and yy)

ORIGINAL TEXT TEXTE ORIGINAL

(a) when was the government first made aware of this legislation and how;


FATCA was signed into law by the President of the United States on March 18, 2010 as part of the Hiring lncentives to Restore Emp/oyment (HIRE) Act. Before the provisions of FATCA were included in the HIRE Act, they were tabled as a bill in the U.S. Congress in 2009 (H.R. 3933, S. 1934) that was built on a proposai outlined in the U.S. Treasury's General Expia nation of the Administration's Fiscal Year 201 0 Revenue Proposais ("Green Book") on May 11, 2009.

The Department of Finance monitors major tax developments in key countries.

(b) what steps has Canada taken since the legislation's introduction in the U.S., broken down by year; (c) du ring the consideration of this· legislation in the U.S., did Canada make any representations to the U.S. government and if so, (i) when, (ii) by whom, (iii) to whom, (iv) on what dates, (v) by what authority (vi) with what desired effect (vii) and with what outcome; ·

The Government respects the sovereign right of the U.S. to determine its own tax legislation and its efforts to combat tax evasion- the underlying objective of FATCA. ln fac;t, the Government of Canada and the Government of the United States co-operate to prevent tax evasion. However, FATCA has raised a number of concerns in Canada-among bath dual Canada-U.S. citizens and Canadian financial institutions.

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The Government has consistently raised objections to FATCA and àdvanced the principle that, in seeking to meet the objectives of FATCA, greater reliance can be placed on the procedures that already exist under the Canada-U.S. tax treaty. The Minister of Finance has raised serious concerns directly with the U.S. about FATCA. For instance, the Minister wrote an op-ed on the issue for publication in major U.S. newspapers: http://business. financialpost.com/2011/09/16/read-jim-flahertys-letter-on-americans-in-canada/. The Government is pleased that the U.S. has accepted the principle of greater reliance on the existing procedures in the Canada-U.S. tax treaty as the basis for an amended process for achieving FATCA's objective in Canada through the negotiation of an intergovernmental agreement.

On November 8, 2012, the Government announced that it is in negotiations with the U.S. to sign an intergovernmental agreement for the implementation of FATCA. As outlined on page 156 of Economie Action Plan 2013 (http://www.budget.gc.ca/2013/doc/plan/budget2013-eng.pdf), the agreement under negotiation is intended to improve cross-border tax compliance through enhanced information exchange und er the Canada-U.S. tax treaty, including information exchange in support of the U.S. FATCA provisions. The agreement under negotiation is based on the reciprocal version of the Model1 IGA released by the U.S. Treasury on July 26, 2012 and updated periodically sin ce th at ti me (http://www. treasury .gov/resource-center/tax-policy/treaties/Pages/F A TCA.aspx).

The Government is continuing to work with its U.S. counterparts to develop an approach that bath countries will find agreeable. The Government is close to a proposed agreement with the U.S. and is hopeful th at it will be able to announce further details in the future. The implications of FATCA in Canada will depend on the outcome of negotiations between Canada and the U.S.

(d) how many individuals in Canada will be affected; (e) how was the figure in (d) calculated; (f) how many Canadï·an citizens residing in Canada are U.S. persans under FATCA; (g) how many Canadian permanent residents are U.S. persans under FATCA; (h) how many applications for permanent residency is Canada currently processing from persans who are or will be treated as U.S. persans under FATCA; (1] broken dawn by province and territory and status, how many personsîn Canada are projected to be affected by FATCA; (Jl how was the figure in (/) calculated;

The implications of FATCA in Canada, including on the number of individuals in Canada that would be affected, will depend on the outcome of negotiations between and the U.S.

(k) how many Canadian financial institutions will be impacted by FATCA; (/) how was the figure in (k) calculated; (m) how many non-financial Canadian entities will be impacted by FATCA; (n) how was the figure in (m) calculated;

FATCA could potentially impact any financial institution that meets the definition of a financial institution as defined in ttie FATCA legislation. The number of financial institutions and non-financial entities in Canada that will be impacted by FATCA will depend on the outcome of negotiations between Canada and the U.S. ·

(o) what consultations has the government undertaken with respect to FATCA's impact on persans resident in Canada; (p) what consultations has the government undertaken with respect to FATCA's impact on financial institutions; (q) what consultations has the government undertaken with respect to FATCA's impact on non-financial entities;

When the Government announced on November 8, 2012 on the Department of Finance website that it had entered into negotiations with the U.S. to sign an IGA, the posting on the Department of Finance website invited Canadians wishing to offer comments concerning the negotiations to send their views to the Department.

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(r) what estimates and studies have been undertaken with respect to the consequences of a 30% withholding of U.S. sourced income to financial institutions; (s) when did the studies in (r) occur and what were their conclusions; ·

FATCA has raised a number of concerns in Canada- among bath dual Canada-U.S. citizens and Canadian financial institutions. These concerns include the possibility of the FA TCA withholding tax being applied against Canadian financial institutions or their account holders.

The Government has advanced the principle that, in seeking to meet the objectives of FATCA, greater reliance can be placed on the procedures th at already exist under the Canada-U.S. tax treaty. The Govemment is pleased the U.S. has accepted this principle as the basis for an amended process for achieving FATCA's objectives in Canada, and Canada and the U.S. are negotiating an agreement to this effect.

As noted above, the negotiations between Canada and the U.S. on an IGA are based on the Madel 1 JGA released by the U.S. Treasury. The terms of the Madel 1 IGA include provisions th at wou Id protect financial institutions in Canada and their clients from FATCA's withholding taxes. The implications of FATCA for Canadians will depend on the outcome of negotiations between Canada and the U.S.

(t) how much has been spent evaluating FATCA's impact on Canadians; (u) broken down by department, how was the figure in (r) determined;

The Department of Finance has been assessing the implications of FATCA for Canada since 2009. The Department of Finance's costs in this regard have been covered by existing resource levels. No federal department to date has been allocated new funds through the Parliamentary appropriation process for any costs related to FATCA.

(v) what estimates have been undertaken with respect to FATCA's cost to implement for Canada and with what conclusions;

As noted, FATCA has raised a number of concerns in Canada- among both dual Canada-U.S. citizens and Canadian financial institutions. These concerns include the question ofwhether the FATCA reporting requirements, that would campel financial institutions to report information on account holders that are U.S. citizens directly to the Internai Revenue ·service (IRS), would be inconsistent with Canadian privacy laws. Unless an agreement is in place, Canadian financial institutions and dual Canada-U.S. citizens holding financial accounts in Canada would be required to comply with FATCA starting July 1, 2014. To address these concerns, Canada has engaged in lengthy negotiations with the U.S.

Under the Madel 1 IGA approach which is the basis for the negotiations, financial institutions in Canada would not report information directly to the IRS. Rather, information on U.S. clients would be reported to the Canada Revenue Agency (CRA), which would then exchange it with the IRS through the existing provisions, and protected by the safeguards under, the Canada-U.S. tax treaty. The Model1 IGA approach would also protect clients of financial institutions in Canada against FATCA's withholding taxes.

(w) for the five years starting in 2014, how much is FATCA implementation expected to cost (i) Canada Revenue Agency, (ii) the department of Finance, (iii) the department of Justice, (iv) ether government departments, agencies, boards, or tribunals; (x) broken dawn by year and cost from 2010-2020, what is the total financial impact of FATCA implementation expected to be on Canadian taxpayers; (y) how were the figures in (x) obtained;

1t is anticipated that the Department of Finance's costs will be absorbed within existing resource levels.

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(z) what outside legal opinions has the. government sought with respect to FATCA's compatibility with Canadian law; (aa) when were the opinions in (z) sought and at what expense; ·

The Department of Finance is unable to provide information in response to this question because the Department does not have relevant information or the Department cannat disclose the information because it is subject to solicitor-client privilege. ·

(bb} have unsolicited legal opinions been sent to the government regarding FATCA; (cc) how many opinions in (bb) has the government received (i) on what dates, (ii) with what conclusions, (iii) with what impact on the Government's actions;

The Department of Finance received an unsolicited legal opinion from Mr. Peter Hogg on December 12, 2012, which has since been made public through the Access to Information Act, with the consent of Mr. Hogg. As with ali submissions received from the public, Mr. Hogg's views have been taken into consideration by the Department of Finance as part of its policy development process. Any conclusion related to consideration by the Government of Mr. Hogg's legal opinion is subject to solicitor-client privilege.

(del) has the government assessed the possibility of not acceding to FATCA in any way and, if so, with what conclusion and with what cost to Canada orto Canadians when compared to accession;

If Canada were ta not negotiate an agreement, obligations for Canadian financial institutions to comply with FATCA would be unilaterally and automatically imposed on them by the U.S. as of July 1, 2014. These obligations would force Canadian financial institutions to choose between (i) entering into an agreement with the IRS that would require them to report to the IRS on their U.S. account holders, which would raise concerns about consistency with Canadian privacy laws, and (ii) being subject to the FATCA withholding taxon certain U.S. source payments, which could have a significant negative effect on the Canadian economy. ln addition, under FATCA, the obligations on Canadian financial institutions could result in their clients being subject to FATCA withholding or having their accounts closed in certain situations.

The Government has consistently raised objections ta FATCA and advanced the principle that, in seeking ta meet the objectives of FATCA, greater reliance can be placed on the procedures that already exist under the Canada-U.S. tax treaty. We are pleased the U.S. has accepted this principle as the basis for an amended process for achieving FATCA's objectives in Canada, and Canada and the U.S. are negotiating an agreement to this effect.

(ee) how much ha.s been spent on negotiations surrounding FATCA, broken down by year and expense;

The Department of Finance's negotiating costs have been absorbed within existing resource levels.

(tf) which i.ndividuals from the government have negotiated on Canada's behalf regarding FA TCA;

The Canadian delegation ta negotiate an IGA with the U.S. is comprised of officiais from the Department of Finance with assistance from officiais of the CRA.

(gg) what has the Minister of Finance's persona! role been with respect to FATCA negotiations;

The Minister of Finance has provided direction ta the Department of Finance regarding the negotiations and has stayed abreast of developments throughout the· negotiation process.

(kk) what penalties will there be for U.S. failure to meet any of its negotiated obligations;

The implications of FATCA in Canada will depend on the outcome of negotiations between Canada and the U.S.

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{mm) broken down by department and agency, and with specifie record numbers and titles, what briefing materials and files have been developed regarding FATCA: See table be low.

Trac king Date· Title · · ., · .. :·,· .. > . f Number - · · · : . · .. ,. __ ·-. ,:_.-·

. . ... ·. "'. . ·' : .. :· 2013FIN396125 13/9/2013 2013FIN391084 29/5/2013 2013FIN388946 16/4/2013 2013FIN384597 8/2/2013

2012FIN378373 24/9/2012 2012FIN376486 15/8/2012 2012FIN37 4854 12/7/2012 2012FIN369017 24/4/2012

2012FIN363958 17/2/2012 2011 FIN361544/ 16/12/2011 2011 FIN361846

2011FIN360134 23/11/2011 2011 FIN355319 9/9/2011 2011FIN354148 30/8/2011

2011 FIN351692 18/8/2011

2011 FIN353037 22/7/2011

2011 FIN350793 29/6/2011 2011 FIN352052 28/6/2011 2011 FIN341782 7/2/2011 201 OFIN334184 13/1/2011 2010FIN331214 6/10/2010 2010FIN327362 26/7/2010 201 OFIN324081 28/6/2010

FATCA IGA Fact Sheet [title withheld] Sun Life- Longevity Risk and FATCA FATCA: Recent Developments and Update on Negotiations with the U.S. FATCA [title partially withheld] FATCA- Release of US Modellntergovernmental FATCA [title j)_artially_ withhelc!l FATCA- Release of U.S .. Draft Regulations and Joint Statement; [title

withheld] FATCA- Letter from lnstitute of International Finance Updates on U.S. Tax and Account Reporting Requirements for U.S. citizens residing in Canada and on the Foreign Account Tax Compliance Act Update: Foreign Account Tax Compliance Act (FATCA) Fact Sheet on U.S. Tax Re_portin_g_ lncluding FATCA Update on the [title partially withheld] and [title partially withheld] efforts on FATCA [title partially withheld] the U.S. Foreign Account Tax Compliance Act (FATCA) Foreign Account Tax Compliance Act Update- Details of Implementation Timeline Released by US Update on outreach [title partially withheld] other countries on FATCA [title withheld] Foreign Account Tax Compliance ActlFATCAJ Update Foreign Account Tax Compliance Act (FATCA) Update Foreign Account Tax Compliance Act (FATCA) Update F ATCA Update: [title partially withheld] Foreign Account Tax Compliance Provisions of the Hiring lncentives ta Restore Employment Act ·

ln preparing responses to parliamentary questions, the Government is guided by the ru les and principles contained in the Privacy Act and the Access to Information Act, and therefore certain information has been withheld consistent with these rules and principles.

(oo) have any future public consultations with respect to FATCA implementation been planned and, if not, why not;

When the Government announced on November 8, 2012 on the Department of Finance website that it had entered into negotiations with the U.S. to sign an IGA, the posting on the Department of Finance website invited Canadians wishing to offer comments concerning the negotiations to send their views to the Department.

(pp) what is the projected impact of FATCA on the Bank of Canada;

The U.S. FATCA legislation exempts from FATCA's due diligence, reporting, and withholding requirements any foreign central bank of issue, which would include the Bank of Canada. See paragraph 1471(f)(3) and subparagraph 1472(c)(1)(F) of the Internai Revenue Code.

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(qq) what efforts has the government made with respect to informing financial institutions of their obligations under FATCA; (rr) what efforts has the government made with respect to informing non-financial entities of their obligations under FATCA; (ss) what efforts has the government made with respect to informing individuals residing in Canada of their obligations under FATCA;

The Government does not provide advice with respect to compliance with foreign laws. The Government has consulted with Çind been contacted by individuals, groups and corporations, particularly in the financial sector, to discuss the implications of FATCA and an IGA in Canada.

The Government announced on November 8, 2012 that it is in negotiations with the U.S. on an agreement to improve cross-border tax compliance through enhanced information exchange under the Canada- U.S. tax treaty, including information exchange in support of the U.S. FATCA provisions. The announcement was made on the Oepartment of Finance's treaty page (http://www.fin.gc.ca/treaties-conventions/notices/unitedstates-etatsunis-eng.asp). Further information about the negotiations was highlighted on page 156 of Economie Action Plan 2013 (http://www. budget. ge. ca/20 13/doc/plan/budget2013-eng. pdf).

(tt) has Canadian non-compliance with FATCA been assessed as a possibility and, if so, to what extent;

If Canada were to not negàtiate an agreement, obligations for Canadian financial institutions to comply with FATCA would be unilaterally and automatically imposed on them by the U.S. as of July 1, 2014. These ·obligations would force Canadian financial institutions to choose between (i) entering into an agreement with the IRS that would require them to report to the IRS on their U.S. account holders, which would raise concerns about consistency with Canadian privacy laws, (ii) being subject to the FATCA withholding taxon certain U.S. source payments. Under FATCA, the obligations on Canadian financial institutions could result in their clients being subject to FATCA withholding or having their accounts closed in certain situations.

(uu) has FATCA been raised in discussions between Canada and countries other than the U.S. and, if so, (i) with which countries, (ii) at what level(s) did the discussion occur, (iii) on what dates, (iv) in what forum, (v) and with which individuals from Canada participating;

Government officiais have held discussions with various countries in which FAT CA has been discussed. Sorne of these discussions occurred at the OECD while ethers were bilateral discussions. The names of individual countries cannet be disclosed as this could affect international relations.

(w) have any studies or analysis taken place with respect to FATCA's impact on immigration to Canada by persons subject to this legislation and, if so, with what conclusion;

The Department of Finance has not undertaken any such studies or analysis, and is not aware of any having been undertaken.

(xx) has the American Ambassador to Canada raised the issue of FATCA in any discussions and if so, (i) which discussions, (ii) on what dates, (iii) with what outcome;

The Department of Finance is not aware that the American Ambassador to Canada has raised with the Government the issue of FATCA.

(yy) has the government considered the correspondence of Peter Hogg regarding F ATCA and if so, (i) with what impact on policy development, (ii) with what conclusion;

As with ali submissions received from the public, Mr. Hogg's views have been taken into consideration by the Department of Finance as part of its po licy development process.

Office of the Superintendent of Financial Institutions {OS FI)

This question is not applicable to the Office of the Superintendent of Financial Institutions. 6/6

INQUIRY OF MINISTRY DEMANDE DE RENSEIGNEMENT AU GOUVERNEMENT PREPARE IN ENGLISH AND FRENCH MARKING "ORIGINAL TEXT" OR "TRANSLATION"

PRÉPARER EN ANGLAIS ET EN FRANÇAIS EN INDIQUANT "TEXTE ORIGINAL" OU "TRADUCTION"

QUESTION NO.IN° DE LA QUESTION BY 1 DE DATE

QUESTION

Q-1272 Mr. Brison (Kings-Hants) October 28, 2013

John Baird, P.C., M.P.

PRINT NAME OF SIGNA TORY INSCRIRE LE NOM DU SIGNATAIRE

REPL Y BY THE MINISTER OF FOREIGN AFF AIRS RÉPONSE DU MINISTRE DES AFFAIRES ÉTRANGÈRES

SIGNATURE MINISTER OR PARUAMENTARYSECRETARY MINISTRE OU SECRËTAIRE PARLEMENTAIRE

With regard to the United States (U.S.) Foreign Account Tax Compliance Act(FATCA): (a) when was the government first made aware ofthis legislation and how; (b) what steps has Canada taken since the legislation's introduction in the U.S., broken down by year; (c) during the consideration of this legislation in the U.S., did Canada make any representations to the U.S. government and if so, (i) when, (ii) by whom, (iii) to whom, (iv) on what dates, (v) by what authority (vi) with what desired effect (vii) and with what outcome; (d) how many individuals in Canada will be affected; (e) how was the figure in (d) calculated; (j) how many Canadian citizens residing in Canada are U .S. persons under F ATCA; (g) how many Canadian permanent residents are U.S. persons under F ATCA; See full text of the question attached.

REPL Y 1 RÉPONSE

Foreign Affairs, Trade and Development Canada (DFATD)



For this section, the responses of the Minister of International Trade, the Minister of Foreign Affairs and the Minister of International Oevelopment are the same.

DFATD is responsible for parts w)(iv), z), aa), bb), cc) and mm) of the question

lt should be noted that in processing parliamentary returns, the Government applies the Privacy Act and the principles set out in the Access to Information Act, and certain information has been withheld on the grounds that the information constitutes persona! information .

. (w) for the five years starting in 2014, how much is FATCA implementation expected to cost, (iv) other government departments, agencies, boards, or tribunals;

DFATD does not expect ta incur any implementation costs.

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(z) what outside legal opinions has the government sought with respect to FATCA's compatibility with Canadian law; (aa) when were the opinions in (z) sought and at what expense; (bb) have unsolicited legal opinions been sent to the government regarding FATCA cc) how many opinions in (bb) has the government received, (i) on what dates, (ii) with what conclusions, (iii) with what impact on the Government's actions;

DFATD has not sought outside legal opinion on FATCA and there is no record of any unsolicited opinions having been submitted.

(ii) what has the Minister of Foreign Affairs' persona! role been with respect to FATCA negotiations;

The Minister of Foreign Affairs has not had a personal rote with respect to FATCA negotiations aside from requesting that the Minister of Finance review the issue of FATCA.

(mm) broken down by department and a geney, and with specifie record numbers and titles, what briefing materials and files have been developed regarding FATCA

DFATD developed the following briefing materials and files regarding FATCA:

• Briefing materiallfile: Environmental Strategie Evaluation. Title: The lntergovernmental Agreement Between Canada and the United States to lmplement the U.S. Foreign Account Tax Compliance Act (FATCA).

• Briefing material/file: Briefing Document. Title: Background to be Provided to Missions: U.S. Foreign Account Tax Compliance Act (FATCA).

• Briefing material/file: Memorandum for Information to Deputy Minister of International Trade. Title: Providing Support to Canadian Companies with the Application of the U.S. Foreign Account Tax Compliance Act (FATCA) Abroad. Document number: BPTS 00995-2013.

• Briefing materiallfile: Meeting Note for Minister of Foreign Affairs Title: Minister of Foreign Affairs Meeting- Thursday, January 5, 2012. Document number: BPTS 00007-2012.

• Briefing materiallfile: Memorandum of Information for the Minister of Foreign Affairs and the Minister of International Trade. Title: The Impact of U.S. Tax Obligation on Canada-USA Dual Citizens.

• Briefing materiallfile: Memorandum of Information for Assistant Deputy Minister Title: Americas U.S. ·Foreign Account Tax Compliance Act (FATCA)

.- Briefing materiallfile: GeneraiBrief. Title: Foreign AccountTax Compliance Act (FATCA).

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(ww) has the Canadian Ambassador to the U.S. raised the issue of FATCA in any discussions and if so, (i) which discussions, (ii) on what dates, (iii) with what desired goal;

1. (i) Ambassador Doer held a meeting with Senator Chuck Schumer (D-NY) . (ii) The date was April 17, 2012 (iii) The goal was, as noted in the request to the Senator's office, "to discuss TPP, ballast water, and Beyond the Border." FATCA was discussed on the margins of the meeting.

2. (i) Ambassador Doer raised FATCA at a meeting with congressman Barney Frank, ranking member of the House Financial Services Committee. (ii) The date was April 23, 2009. (iii) The goal was, as noted in the request to the Congressman's office, "to discuss issues related to the ongoing financial crisis and policy response, as weil as issues related to the auto sector." FATCA was discussed on the margins of the meeting.

3. (i) Ambassador Doer raised FATCA at a meeting with congressman Barney Frank, Chair of the House Financial Services Committee. (ii) The date was April22, 2010. (iii) The goal was, as noted in the request to the Congressman's office, "to discuss finance issues in general and financial reform legislation." FATCA was discussed on the margins of the meeting.

To Note: Ambassador Doer raised FATCA as a general subject matter in telephone calls with representatives of Congress/Senate wh ile discussing the financial sector. FA TCA was a Iso mentioned in meetings at the U.S Department of Treasury. However, due to the frequency and multiple subjects discussed, specifie dates are not available.

(xx) has the American Ambassador to Canada raised the issue of FATCA in any discussions and if so, (i) which discussions, (ii) on what dates, (iii) with what outcome;

The principles set out in the Access to Information Act have been applied and therefore information concerning discussions with a representative of another country's government cannet be divulged.

INQUIRY OF MINISTRY DEMANDE DE RENSEIGNEMENT AU GOUVERNEMENT

,, PREPt\RE IN ENGLLSH AND FRENCH MARK!NG "ORIGINAL TEXT" OR "TRANSLATION" G PRÉPARER EN ANGLAIS ET EN FRANÇAIS EN lNDIQUANT "TEXTE ORIGINAL" ou "TRADUCTION" \1

QUESTION NO.fNc DE LA QUESTiON Q-127

BY iDE Mr. Brison (Kings-Hants)

QUESTION

Paul Calandra

PRINT NAME OF SIGNA TORY iNSCRIHE LE NOM DU SiGNATAIRE

DATE October 28,2013

REPL Y BY THE OFFICES OF THE PRIME MINISTER AND THE PRIVY COUNCIL RÉPONSE OU CABINET DU PREMIER MINISTRE ET DU BUREAU OU CONSEIL PRIVÉ . /: __

/ ( . . ---------<''"'/-_->"" __ ,,/' i ......

.. SIGNATURE

Mlt·JISTER OR PARLIAMENTARY SECRET.4RY MINiSTRE OU SECRETAIRE PARLEMENT AIRE

With regard to the United States (U,S.) Foreign Account Tax Compliance Act (FATCA): (a) when was the government first made aware of this legislation and how; (b) wh at steps has Canada taken sin ce the legislation's introduction in the U.S., broken down by year; (c) during the consideration of this legislation in the U.S., did Canada make any representations to the U.S. government and if so, (i)- See full text of the question attached. REPL Y 1 REPONSE ORIGINAL TEXT

TEXTE ORIGINAL TRA.NSLATION D TR"<DUCTION

With regard to the United States Foreign Account Tax Compliance Act, the Privy Council Office responds th at the information requested is withheld in accord ance with the princip les of the Access ta Information Act.

INQUIRY OF MII\,IISTRY DEMANDE DE RENSEIGNEMENT AU GOUVERNEMENT

PREPARE IN ENGLISH AND FRENCH MARKING "ORIGINAL TEXT" OR "TRANSLATION" PRÉPARER EN ANGLAIS ET EN FRANÇAIS EN INDIQUANT "TEXTE ORIGINAL" OU "TRADUCTION"

QUESTION NO./N° DE LA QUESTION BY 1 DE DATE

Q-121 Mr. Hsu (Kingston and the Islands)

QUESTION

Signed by Mr. Saxton PRINT NAME OF SIGNA TORY

INSCRIRE LE NOM DU SIGNATAIRE

October 25, 2013 REPL Y BY THE MINISTER OF FINANCE

RÉPONSE DU MINISTRE DES FINANCES

SIGNATURE MINISTER OR PARUAMENTARY SEŒl.ETARY MINISTRE OU SECRÉTAIRE PARLEMENTAIRE

With regard to the implementation of the Foreign Account Tax Compliance Act (FATCA): (a) what steps has Canada undertaken to complete an lnter-Governmental Agreement (IGA) with the United States; (b) with what type of legal instrument will the government enact a FATCA implementation agreement; (c) will the government bring an IGA before Parliament and, if so, in what form; (cf) what steps are in place to ensure parliamentary review of an IGA; ... See full text of the question attached.

REPL Y 1 RÉPONSE

Finance Canada

Parts a) to 1}, o) to g), s) to ii), kk) to oo), qg) to ss), ww), and zz) to ccc)



(a) what steps has Canada undertaken to complete an lnter-Governmental Agreement (IGA) with the United States;

The Government of Canada has consistently raised objections to FATCA and advanced the principle that, in seeking to meet.the objectives of FATCA, greater reliance can be placed on the procedures that already exist under the Canada-U.S. tax treaty. We are pleased the U.S. has accepted this principle as the basis for an amended process for achieving FATCA's objectives in Canada, and Canada and the U.S. are negotiating an agreement to this effect.

The Government of Canada announced on November 8, 2012 that it is in negotiations with the U.S. on an agreement to improve cross-border tax compliance through enhanced information exchange under the Canada- U.S. tax treaty, including information exchange in support of the U.S. FATCA provisions. The announcement was made on the Department of Finance's treaty page (http://www.fin.gc.ca/treaties-conventions/notices/unitedstates-etatsuniseng.asp).

As outlined on page 156 of Economie Action Plan 2013 (http://www.budget.gc.ca/2013/doc/plan/budget2013-eng.pdf), the agreement under negotiation is intended to improve cross-border tax compliance through enhanced information exchange under the Canada-U.S. tax treaty, induding information exchange in support of the U.S. FATCA provisions.

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The negotiations are based on the reciprocal version of the Model1 IGA released by the U.S. Treasury on July 26, 2012 and updated periodically since that time (http://www.treasury.gov/resource-center/taxpolicy/treaties/Pages/FA TCA.aspx).

Under the Mode! 1 IGA approach, financial institutions in Canada would not report information directly to the IRS. Rather, information on U.S. clients would be reported to the Canada Revenue Agency (CRA), which would then exchange it with the U.S. Internai Revenue Service (IRS) through the existing provisions, and protected by the safeguards un der, the Canada-U.S. tax treaty. The Mode! 1 IGA approach would a Iso protect clients of financial institutions in Canada against FATCA's withholding taxes as weil as the provisions of FATCA that could require that certain clients of non-U.S. financial institutions be denied access to financial services.

The Government of Canada is continuing to work with the U.S. to develop an approach that both countries will find agreeable. The Government of Canada is close to a proposed agreement.with the U.S. and is hopeful that it will be able to announce further details in the future. If an agreement is reached, it would be made public and require Parliamentary approval for implementation.

(b) with what type of legal instrument will the government enact a FATCA implementation agreement; (c) will the government bring an IGA before Parliament and, if so, in what form; (d} what steps are in place to ensure parliamentary review of an IGA;

If an agreement to implement FATCA is reached with the U.S., the agreement would be made public and require Parliamentary approval for implementation.

(e) what studies have been undertaken asto whether an IGA can be implemented as an interpretation of the existing double tax treaty;

Article XXVII of the Canada-U.S. tax treaty authorizes the exchange of information for tax purposes, including on an automatic basis. The due diligence and reporting components of an IGA would require implementing legislation.

(f) in what ways will the government involve Parliament in any process to am end interpretation of the double taxation treaty;

If an agreement to implement FATCA is reached with the U.S., the agreement would be made public and require Parliamentary approval for implementation.

Interpretation of the Canada-U.S. tax treaty is an administrative and judicial process. The CRA is the Canadian authority for administering the tax treaty. Taxpayer disputes regarding interpretation of the tax treaty can rely on the processes under the treaty or can be taken to the Tax Court of Canada.

(g) who is involved in the process indicated in (a);

The Canadian delegation to negotiate an IGA with the U.S. is comprised of officiais from the Department of Finance with assistance from offiCiais of the CRA.

(h) by what criteria is the government evaluating any proposed IGA with the US; (1) who established the criteria in·(h), (i) on what date, (ii) under what authority;

FATCA has raised a number of concerns in Canada- among both dual Canada-U.S. citizens and Canadian financial institutions. These concerns include the question of whether the FATCA reporting requirements, that would compel financial institutions to report information on account holders that àre U.S. citizens directly to the IRS, would be

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inconsistent with Canadian privacy laws, as weil as the possibility that, under FATCA, financial institutions would be required to deny services to certain clients in certain situations.

Unless an agreement is in place, Canadian financial institutions and dual Canada-U.S. citizens holding financial accounts in Canada would be required to comply with FATCA starting July 1, 2014. To address these concerns, Canada has engaged in lengthy negotiations with the U.S.

(/1 is a draft IGA currently being negotiated, and if so, what is the status of said negotiations; (k) when will the draft IGA be made public;

The Government of Canada announced on·November 8, 2012 that it is in negotiations with the U.S. on an agreement to improve cross-border tax compliance through enhanced information exchange under the Canada-U.S. tax treaty, including information exchange in support of the U.S. FATCA provisions. The announcement was made on the Department of Finance's treaty page (http://www. fin. ge. ca/treaties-conventions/notices/unitedstates-etatsuniseng.asp).

The Government of Canada is continuing to work with the U.S. to develop an approach that bath countries will find agreeable. The Government of Canada is close to a proposed agreement with the U.S. and is hopeful that it will be able to announce further details in the future. If an agreement is reached, it would be made public at that time.

(/)will the public be consulted for input on any agreement, and if so, by what means;

When the Government announced on November 8, 2012 on the Department of Finance website that it had entered into negotiations with the U.S. to sign an IGA, the posting on the website invited Canadians wishing to offer comments concerning the negotiations ta send their views to the Department.

(o) with which specifie individuals and groups did the Minister of Finance consult regarding FATCA, and on what dates; (p) with which specifie individuals and groups did the Minister of Finance consult regarding any IGA, and on what dates;

The Government of Canada has consulted and has been contacted by individuals and groups to discuss the implications of FATCA and an IGA in Canada.

(q) what studies and analyses has the Department of Finance undertaken with respect to FATCA;

The Department of Finance is reviewing the implications of FATCA on an ongoing basis. FATCA has raised a number of concerns in Canada- among bath dual Canada-U.S. citizens and Canadian financial institutions.

(s) what analyses and studies have been undertaken asto whether the proposed FATCA regime constitutes an override of the existing double tax convention; (t) what were the conclusions of the studies in (s);

Article XXVII of the Canada-U.S. tax treaty authorizes the exchange of information for tax purposes, including on an automatic basis. Under a potential agreement with the U.S., information exchange between Canada and the U.S. would take place under the existing provisions, and protected by the safeguards under, the Canada-U.S. tax treaty.

(u) what steps is the government taking to ensure that, as a result of FATCA or an IGA, the US will not be allowed to impose higher taxes on Canadian persons than those agreed under the current convention;

As noted above, the negotiations between Canada and the U.S. on an IGA are based on the Madel 1 IGA released by the U.S. Treasury. The Model1 IGA is strictly an information-sharing regime. lt would not allow the U.S. to impose higher taxes on Canadian persans than those agreed under the existing provisions of the Canada-U.S. tax treaty.

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(v) what studies and analyses have been undertaken to determine whether Canadian citizens and residents are or will be denied financial services in Canada owing toUS tax law in general and FATCA in particular; (w)

' what are the conclusions or recommendations of the studies in (v); (x) what mechanisms are in place to · ensure that Canadian citizens and residents are not and will not be denied financial services in Canada owing toUS tax law in general and FATCA in particular; (y) what measures will be taken to remedy deniai of services to Canadians as a result of FATCA;

The negotiations between Canada and the U.S. on an IGA are based on the Model 1 IGA released by the U.S. Treasury. The terms of the Mode! 1 IGA would protect clients of financial institutions in Canada from the provisions of FATCA that would require Canadian financial institutions to deny access to financial services to certain clients in certain situations. This approach would ensure that there would be no conflict with the Access to Basic Banking Services Regulations under the Bank Act.

(z) what studies and analyses will be undertaken to assess FATCA's impact on the availability ofTFSAs and RESPs for dual US-Canada citizens; (aa) what are the conclusions of any studies in (z);

The Mode! 1 IGA approach would not impose any U.S. taxes or pe'nalties on account holders at Canadian financial institutîons, nor would it include any provisions that would limit the availability of TFSAs or RESPs for dual U.S.Canada citizens.

(bb) what analyses and studies have been undertaken regarding whether the US definition of "resident" for tax purposes, and its impact on Canadians with dual status, is compatible with Canadian law, including the Charter of Rights and freedoms; (cc) what analyses and studies have been undertaken regarding whether the US definition of "resident" for tax purposes, and its impact on Canadians with dual status, as will be enforced by F ATCA or by an IGA, is compatible with Canadian law and, in particular, the Charter of Rights and Freedoms;

Canada respects the sovereign right of the U.S. to determine its own tax legislation and its efforts to combat tax evasion- the underlying objective of FATCA. Regarding the U.S. definition of "resident" for tax purposes, Article IV of the Canada-U.S. tax treaty contains provisions for applying the concept of residence in the context of Canada-U.S. tax relations, including acknowledgement that the U.S. taxes individuals who are citizens of that country.

ln respect of any legislation that might be proposed to implement an IGA in Canada, the Minister of Justice is required under section 4.1 of the Oepartment of Justice Act to examine ali government legislation introduced in or presented to the House of Gommons by a minister of the Crown for inconsistency with the Charter of Rights and Freedoms and to report that inconsistency to the House of Gommons.

(dd) what analyses and studies have been conducted with respect to FATCA's consequences upon Canadians who believed their US Citizenship had been relinquished; (ee) with respect to the studies referenced in (dd), what particular efforts has the government undertaken to ensure no violation of a Canadian's charter right would be occasioned by implementing·FATCA or an IGA;

The Government of Canada is not able to provide tax advice with respect to individuals who may have tax obligations in ether jurisdictions.

As noted above, in respect of any legislation that might be proposed to implement an IGA in Canada, the Minister of Justice is required under section 4.1 of the Department of Justice Act to examine ali government legislation introduced in or presented to the Hou se of Gommons by a minister of the Crown for inconsistency with the Charter of Rights and Freedoms and to report that inconsistency to the House of Gommons.

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(ff) what studies and analyses have been undertaken regarding the likely cost of FATCA implementation to (i) Canadian private institutions, (ii) Canadian individuals, (iii) the government; (gg) how were the figures in (ft) arrived at, by whom, when, and in consultation with whom; (hh) what studies and analyses have been undertaken asto whether the likely cost of FATCA implementation to Canadian private institutions, Canadian individuals, and the government will be offset by the receipt of reciprocal tax information and Canadian tax law enforcement by the US; (ii) what analyses and studies have been undertaken as to whether the likely costs and benefits described in (ff) and (hh) are likely to be greater, fesser, or the same as under the current tax-information-sharing relationship with the US;

As noted, FATCA has raised a number of concerns in Canada- among bath dual Canada-U.S. citizens and Canadian financial institutions. These concerns include the question of wh ether the FAT CA reporting requirements, that would campel financial institutions to report information on account holders th at are U.S. citizens directly ta the IRS, would be inconsistent with Canadian privacy laws. Unless an agreement is in place, Canadian financial institutions and dual Canada-U.S. citizens holding financial accounts in Canada would be required ta comply with FATCA starting July 1, 2014. Ta address these concerns, Canada has engaged in lengthy negotiations with the U.S.

Under the Madel t IGA approach which is the basis for the negotiations, financial institutions in Canada would not report information directly ta the IRS. Rather, information on U.S. clients would be reported ta the CRA, which would then exchange it with the U.S. Internai Revenue Service (IRS) through the existing provisions, and protected by the safeguards under, the Canadé;i-U.S. tax treaty. The Model1 IGA approach would also protect clients of financial institutions in Canada against FATCA's withholding taxes.

(j/) what agencies, boards, tribunats, or commissions of the government have studied, interpreted, analyzed, or commented upon FATCA, (i) to what extent, (ii) on what dates, (iii) with what conclusion(s);

The Oepartment of Finance is not aware of any agencies, boards, tribunals, or commissions of the Government which have analyzed FATCA other than the CRA and the Office of the Privacy Commissioner.

(kk} what specifie steps has the government taken to assess the privacy implications of FATCA;

The Oepartment of Finance continues ta examine the relationship between FATCA and privacy legis~ation, including through ongoing consultations with lndustry Canada and the Office of the Privacy Commissioner.

(/1) on what dates and with respect to what topics has the government met with the Privacy Commissioner to discuss FATCA or the effect of any IGA;

Discussions between the Oepartment of Finance and the Office .of the Privacy Commissioner have been ongoing.

(mm) broken down by province or territory, (i) on which dates and (ii) with what individuals in the provincial and territorial governments did the government consult on the subject of FATCA; (nn) broken down by province or territory, (i) on which dates and (ii) with what individuals in the provincial and territorial governments did the government consult on the subject of any IGA; (oo) does the government have the support of every province and territory with respect to any proposed implementation of FATCA, and what evidence does the government have that this support exists;

The Government of Canada has updated the provinces and territories on developments regardin.g FATCA, including the status of Canada's IGA negotiations with the U.S.

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(qq) how will the government monitor and enforce compliance by Canadian institutions with FATCA requirements; (rr) how will the government monitor and enforce regulatory ·oversight of the bank duediligence efforts required by FATCA and its impleméntation, including (i) by whom (ii) how, (iii) using what standards such efforts will be evaluated; (ss) what penalties exist and what penalties does the government intend to establish for failure to adhere to standards indicated in (rr); (ww), what steps have been undertaken to assess regulatory changes to federal institutions at the provincial and territorial levet that would be required as a result of FATCA or any IGA;

The CRA is the federal agency responsible for administering tax, benefits, and related programs, and to ensure compliance on behalf of governments across Canada. As the administrator of Canada's tax laws, the CRA would be responsible for monitoring and enforcement of any implementing legislation that is enacted to implement the due diligence and reporting requirements in Canada for Canadian financial institutions under an IGA. The impli.cations of FATCA in Canada will depend on the outcome of negotiations between Canada and the u:s. If an agreement to implement FATCA is reached with the U.S, the agreement would be made public and require Parliamentary approval for implementation .

. (zz) has the government assessed whether FATCA and its implementation would require changes to the ways in which tax information is currently shared with the US;

With regards to the information exchange components of an IGA, Article XXVII of the Canada-U.S. tax treaty authorizes the exchange of information for tax purposes, including on an automatic basis.

(aaa) what has the government sought, or does the government plan to seek from the US, in terms of reciprocal information sharing as a result of the FATCA or IGA negotiations, and what is the current status of negotiations on this point;

As noted above, Canada's negotiations with the U.S. are based on the reciprocal version of the Model 1 IGA. Under this approach, the U.S. would agree to provide Canada with enhanced and increased information on certain accounts of Canadian residents held at U.S. financial institutions. A copy of the reciprocal version of the Model ·1 IGA can be accessed on the U.S. Treasury website at http://www.treasury.gov/resource-center/tax-policy/treaties/Pages/FATCA. as px.

(bbb) what measures are in place to ensure that no privacy laws or policies are violated in any transfer of information contemplated in (aaa); and

With regards to the information exchange components of an IGA, Article XXVII of the Canada-U.S. tax treaty authorizes the exchange of information for tax purposes, including on an automatic basis. lt includes safegua~ds to protect confidentiality and ensure that information is used solely for the purpose of tax administration.

(ccc) by what process(es) and on what dates will any IGA and its enacting legislation be vetted for compliance with the (i) Constitution Act, 1867, (ii) Canadian Charter of Rights and Freedoms, (iii) Canadian Bill of Rights?

ln respect of the Government proposing legislation to implement an IGA in Canada, the Minister of Justice is required under section 4.1 of the Deparlment of Justice Act to examine ali government legislation introduced in or presented to the House of Gommons by a minister of the Crown for inconsistency with the Charter of Rights and Freedoms and to report any inèonsistency to the House of Gommons.

Office of the Superintendent of Financial Institutions (OS FI)

This question is not applicable to the Office of the Superintendent of Financial Institutions.

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INQUIRY OF MINISTRY DEMANDE DE RENSEIGNEMENT AU GOUVERNEMENT

PREPARE IN ENGLISH AND FRENCI 1 M:'\RKING ''ORIGINAL TEXT" OR "TRANSLATION" PRÉPARER EN ANGLAIS ET EN FRANÇAIS EN INDIQUANT "TEXTE ORIGINÀL" OU "TRADUCTION"

QUESTION NO.iN° DE LA QUESTION BY 1 DE DATE Q-121 Mr. Hsu (Kingston and the Islands)

QUESTION

Paul Calandra

PRINT NAME OF SIGNA TORY INSCRIRE LE NOM DU SIGNATAIRE

October 25, 2013

. --· --·- - . - SIGNATURE

MINISlER OR P~UAMENTARY SECRETARY MINISTRE OU.,sÉCRÉTAIRE P.t1RLEMENTAIRE

With regard to the implementation of the Foreign Account Tax Compliance Act (FATCA): (a) what steps has Canada undertaken to complete an lnter-Governmental Agreement (IGA) with the United States; (b) with what type of legal instrument will the government enact a FATCA implementation agreement; (c) will the government bring an IGA before Parliament and, if so, in what form; (d) what steps are in place ta ensure parliamentary review of an IGA; (e) what studies have been undertaken asto whether an IGA can be implemented as an interpretation of the existing double tax treaty; - See full text of the question attached. REPL Y i RÉPONSE ORIGINAL TEXT

TEXTE ORiGINAL lRf,NSLATION D TAADUCTION

With regard to the implementation of the Foreign Account Tax Compliance Act, the Privy Cou neil Office responds that the information requested is withheld in accorda nee with the principles of the Access to Information Act.

Documents

Parliamentary answers on FATCA