Canada: Updated FATCA and CRS guidance
Updated guidance includes information on interim treatment of first home savings accounts
Updated guidance includes information on interim treatment of first home savings accounts
The Canada Revenue Agency (CRA) issued updated guidance (released on 23 August 2023) under the FATCA and the common reporting standard (CRS) regimes.
The updated guidance includes information on the interim treatment of first home savings accounts (FHSAs), and also:
- Clarifies that an account held solely by the estate of a deceased individual will not be considered a financial account in the year the financial institution is informed of the death, nor in subsequent years
- States that a new depository account that no longer meets the threshold to be designated as a non-U.S. reportable account at the end of a calendar year, can be designated in a subsequent year provided its balance at the end of that year meets the threshold criterion.
- Clarifies that a financial institution must obtain a valid self-certification within 90 days after the end of the calendar year in which a properly designated account no longer meets the applicable threshold
- Encourages the adoption of IRS Notice 2023-11, which provides temporary relief for reporting on calendar years 2022, 2023 and 2024 to certain financial institutions reporting accounts with missing U.S. taxpayer identification numbers (read TaxNewsFlash)
Read an August 2023 report [PDF 184 KB] prepared by the KPMG member firm in Canada
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