From: AlanBaggett@volcanomail.com   
      
   Transfer of Canadian banking records to Internal Revenue Agency (IRS) doubled   
   last year  :CRA SOTW   
      
    Transfer of Canadian banking records to U.S. tax agency doubled last year   
      
   Documents for thousands of Canadian residents transferred under controversial   
   FATCA legislation   
      
   By Elizabeth Thompson, CBC News Posted: Jan 29, 2017 5:00 AM ET   
      
   Banking records of more than 315,000 Canadian residents were turned over to   
   the U.S. Internal Revenue Service last year under a controversial information   
   sharing deal, CBC News has learned.    
      
   That is double the number transferred in the deal's first year.   
      
   The Canada Revenue Agency transmitted 315,160 banking records to the IRS on   
   Sept. 28, 2016 — a 104 per cent increase over the 154,667 records the agency   
   sent in September 2015.   
      
   Lisa Damien, spokeswoman for the CRA, attributed the increase to the fact it   
   was the second year for the Canada-U.S. information sharing deal that was   
   sparked by the U.S. Foreign Account Tax Compliance Act (FATCA).   
      
   "The exchange in September 2015 was based on accounts identified by financial   
   institutions at the time," she said. "The number of reported accounts was   
   expected to increase in 2016, because the financial institutions have had more   
   time to complete their    
   due diligence and identify other reportable accounts."   
      
   The transmission of banking records of Canadian residents is the result of an   
   agreement worked out in 2014 between Canada and the U.S. after the American   
   government adopted FATCA. The U.S. tax compliance act requires financial   
   institutions around the    
   world to reveal information about bank accounts in a bid to crack down on tax   
   evasion by U.S. taxpayers with foreign accounts.   
      
   Dual citizens, long-term visitors affected   
      
   The deal requires financial institutions to share the banking records of those   
   considered to be "U.S. persons" for tax purposes — regardless of whether   
   they are U.S. citizens.   
      
   Among the people who can be considered by the IRS as "U.S. persons" are   
   Canadians born in the U.S., dual citizens or even those who spend more than a   
   certain number of days in the United States each year.   
      
   Former prime minister Stephen Harper's government argued that given the   
   penalties the U.S. was threatening to impose, it had no choice but to   
   negotiate the information sharing deal. The former government said it was able   
   to exempt some types of accounts    
   from the information transfer.   
      
   The Canada Revenue Agency triggered controversy after it transferred the first   
   batch of Canadian banking records to the IRS in September 2015 in the midst of   
   the election campaign, without waiting for an assessment by Canada's privacy   
   commissioner or the    
   outcome of a legal challenge to the agreement's constitutionality.   
      
   Prime Minister Justin Trudeau, Treasury Board President Scott Brison and   
   Public Safety Minister Ralph Goodale have dropped calls to scrap the deal,   
   which they had made before the Liberals came to power.   
      
   Watchdog wants proactive notification   
      
   Privacy Commissioner Daniel Therrien has raised concerns about the information   
   sharing, questioning whether financial institutions are reporting more   
   accounts than necessary. Under the agreement, financial institutions only have   
   to report accounts    
   belonging to those believed to be U.S. persons if they contain more than   
   $50,000.   
      
   Therrien has also suggested the CRA proactively notify individuals that their   
   financial records had been shared with the IRS. However, the CRA has been   
   reluctant to agree to Therrien's suggestion.   
      
   NDP revenue critic Pierre-Luc Dusseault said the increase in the number of   
   files transferred was "surprising," and he questioned whether financial   
   institutions are only sharing records of accounts worth more than $50,000.   
      
   "I don't see how there would be 150,000 more accounts reportable to the IRS in   
   one year. It is something I will look into."   
      
   Dusseault said the CRA should notify every Canadian resident whose banking   
   records are shared with the IRS.   
      
   Lynne Swanson, of the Alliance for the Defence of Canadian Sovereignty, which   
   is challenging the information sharing agreement in Federal Court, said she   
   has no idea why the number of banking records shared with the IRS doubled.   
      
   "It still seems low in comparison to the number of Canadians that are affected   
   by this," she said. "It is estimated that a million Canadians are affected by   
   this."   
      
   Hopes for repeal   
      
   Swanson hopes that U.S. President Donald Trump, or Congress — which is now   
   controlled by the Republican Party — will scrap FATCA. The Republican   
   platform pledged to do away with the information collecting legislation.   
      
   "FATCA not only allows 'unreasonable search and seizures' but also threatens   
   the ability of overseas Americans to lead normal lives," the platform reads.   
   "We call for its repeal and for a change to residency-based taxation for U.S.   
   citizens overseas."   
      
   Swanson's group is also hoping the Federal Court of Canada will intervene,   
   although a date has not yet been set for a hearing.   
      
   "A foreign government is essentially telling the Canadian government how   
   Canadian citizens and Canadian residents should be treated. It is a violation   
   of the Charter of Rights and Freedoms."   
      
   Elizabeth Thompson can be reached at elizabeth.thompson@cbc.ca   
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