FIs — Get Ready for New Common Reporting Standard Rules | KPMG | CA

FIs — Get Ready for New Common Reporting Standard Rules

FIs — Get Ready for New Common Reporting Standard Rules

April 15, 2016, No. 2016-22. Canadian financial institutions will be required to provide the CRA with information on accounts held by non-residents of Canada beginning in 2018. The CRA will provide this information to other countries’ tax authorities in exchange for information about Canadian financial account holders in their jurisdictions. Financial institutions must have procedures in place to identify this information by July 1, 2017.

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To allow the CRA to access this information, Canada proposed legislation on April 15, 2016 to require financial institutions in Canada to identify accounts held by non-residents (including dual or multiple residents) and report specific information relating to these accounts directly to the CRA. Information that must be reported includes account balances, interest, dividends received and proceeds from the sale of financial assets. These rules apply to accounts held by individuals and certain entities.

A wide variety of entities are included in the broad definition of financial institution used for these reporting rules. Financial institutions required to report under the proposed legislation will need to have procedures in place beginning July 1, 2017 to identify accounts held by tax residents of various foreign jurisdictions and report the required information to the CRA.

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Disclaimer

Information is current to April 15, 2016. The information contained in this TaxNewsFlash-Canada is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation.

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