This new law has the potential to affect almost every Canadian. Even residents who aren’t even considered to be “U.S. persons” could feel the impact
New York, New York (PRWEB) March 01, 2014
Business Review today releases an advisory from its top rated Toronto tax firm, Mark Feldstein and Associates: A new U.S. tax law, The Foreign Account Tax Compliance Act, will require all financial institutions globally to provide the IRS with all financial information of anyone considered to be a U.S. citizen residing in that country. Canadian bank customers may see increased bank fees and other charges to put the new rules and reporting system into place. The law will be effective July, 2014.
A U.S person is considered as:
- A citizen of the United States
- A lawful resident of the U.S. including green card holders
- A person residing in the U.S.
- Certain individuals who spend a majority of their year in the U.S
“This new law has the potential to affect almost every Canadian. Even residents who aren’t even considered to be 'U.S. persons' could feel the impact,” says Mark Feldstein, of Mark Feldstein and Associates. “Banks and other financial institutions will have to charge higher fees to customers to off-set the pricey operating costs. The penalty for non-compliance is a 30 per cent withholding tax on all U.S. income flowing into the bank and 30 per cent on U.S securities.”
The Canadian Banking Association has been in contact with the IRS and the U.S. Treasury Department with concerns affecting Canadians and has been negotiate intergovernmental agreements to devise alternative requirements for the financial institutions. For more information on Canadian tax laws, visit toronto-accountant.ca.
Mark Feldstein & Associates, Chartered Accountants, provide a wide range of professional services to businesses and individuals. To ensure clients receive the best advice in each area, Mark Feldstein & Associates hire only seasoned specialists who, in turn, devote a good portion of their time to upgrading their skills through in-depth professional development. Mark Feldstein has been practicing public accounting and specializing in voluntary disclosure since 1982. He has experience in a wide variety of industries, including retail, manufacturing, importing and exporting, wholesale distribution, technology, restaurants, law firms, engineering firms, architecture firms, education, IT consultants, wealth preservation planning, forensic investigations, internet service providers and construction.
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