The Canada Revenue Agency (CRA) signed an international Multilateral Competent Authority Agreement (MCAA) that will activate the automatic exchange of financial information between tax jurisdictions, including balances, interest, dividends, and sales proceeds from financial assets as of 2018.
For the CRA to obtain the information to be exchanged, the common reporting standard will require financial institutions in Canada to identify accounts held by non-residents and report certain information relating to these accounts directly to the CRA.
Under the new standard, foreign tax authorities will provide information to the CRA relating to financial accounts in their jurisdictions held by Canadian residents. The CRA will, on a reciprocal basis, provide corresponding information to the foreign tax authorities on accounts in Canada held by residents of their jurisdictions.
Read a June 2015 report prepared by the KPMG member firm in Canada: Canada Signs on for Multilateral "Global FATCA" Agreement
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