The Canadian government argued before the Court of Appeals that failure to comply with the US measures would have had a serious impact on Canada’s financial sector, its customers and the economy in general. (Photo: The Canadian Press)
Ottawa – The federal appeals court has upheld the constitutionality of a law that allows Canadian institutions to share account information with US agencies.
Two US-born women, Gwendolyn Louise Deegan and Kazia Highton, who now live in Canada, have challenged Canadian provisions implementing a 2014 agreement between the two countries that allows information sharing.
Both women unsuccessfully argued in federal court that the provisions violated the Charter of Rights and Freedoms guarantee against improper seizure, prompting them to bring their case to the Court of Appeal.
The US Foreign Account Tax Compliance Act, known as FATCA, requires banks and other entities located in countries other than the United States to report information about accounts held by US persons, including dual Canadians.
The Canadian government argued before the Court of Appeals that failure to comply with the US measures would have had a serious impact on Canada’s financial sector, its customers and the economy in general.
Information from Canada shared with the US Internal Revenue Service includes account holder names and addresses, account numbers, account balances, and details such as interest, dividends, and other income.
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