Empire Life | Foreign Account Tax Compliance Act (FATCA)
The Foreign Account Tax Compliance Act (FATCA) is U.S. tax legislation enacted in 2010 to better detect tax evasion by U.S. persons living worldwide with financial accounts at non-U.S. financial institutions.
Effective July 1, 2014, Canadian financial institutions are required to collect information to report to the Canada Revenue Agency on certain financial accounts held in Canada by U.S. persons. This includes new client accounts for individuals opened after June 30, 2014, and for entities opened after December 31, 2014. Information will be collected starting in 2014 on policies where there is an indicator the client may be a U.S. person. Reporting begins in 2015, and will be done annually.