This is unbelievable! Canada’s Taxpayers’ Ombudsman gave Information for Canadian Citizens that are subject to American tax law.
It tells of the “obligation to report income and assets to IRS” for those born in the U.S., those who consider ties with U.S. to have been severed and those who immigrated to the U.S. or worked in the U.S.
This may come as a surprise to many people. There are scores of Canadians citizens who do not consider themselves to be American citizens because they have not lived in the US, let alone filed American tax returns, for decades. Yet, the US has laws in place that require them to disclose their revenue and assets to the IRS for tax purposes under the Foreign Account Tax Compliance Act (FACTA) and the Bank Secrecy Act (BSA).
The Ombudsman tells us about FATCA:
The FATCA was enacted in 2010 by the United States Congress to target non-compliance by US taxpayers using foreign accounts. FATCA requires foreign financial institutions to report information to the IRS about financial accounts held by American taxpayers, or by foreign entities in which taxpayers hold a substantial ownership interest.
On FBARs:
A FBAR is a form that must be completed and filed by an American citizen, resident, or entity that has a financial interest in, or signature authority over, foreign financial accounts where the aggregate value of those accounts exceeds $10,000 at any time during the calendar year.
The use of a FBAR assists the United States government in identifying individuals who may be using foreign financial institutions to bypass United States tax laws. FBARs help identify or trace funds used for illicit purposes or to identify unreported income maintained or generated abroad.
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Not once does Canada’s Taxpayer Ombudsman bother to mention that CRA does not and will not collect taxes or penalties!!! So, I guess we shouldn’t consider him an Ombudsman for anyone tainted with a U.S. place of birth.
But, it’s clear the Ombudsman won’t help us in any way:
While the implications of, and procedures for, these US tax laws do not fall within the mandate of the Taxpayers’ Ombudsman, our office is committed to ensuring Canadian taxpayers receive clear information on issues that may have a negative impact and directing Canadian taxpayers to the appropriate area for assistance in meeting their tax obligations.
It also available in French: Des renseignements pour des citoyens canadiens qui sont assujettis aux lois fiscales des États-Unis
Thanks to WhiteKat for sending this to me. Someone provided it to her from government archives. It does not seem to be actively available on their site now, but this tells us what the Canadian government’s Taxpayers’ Ombudsman thinks of us and our rights as Canadian citizens:
“Congress has spoken.”
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