Parliament passed legislation last week to enact a new "Intergovernmental Agreement" (IGA) with the USA that will have financial institutions collecting and submitting even more information to tax authorities in Canada and the USA. At the same time, legal challenges are being mounted in both countries based on constitutional rights and protections. Indeed, the IGA is offensive, in so far as much more personal financial information must now be 'filed' and may lead to many US citizens, former US citizens and business people being unfairly harassed by the IRS.
One Charter Challenge is being lead by the Alliance for the Defense of Canadian Sovereignty, and support is being solicited. The project is being championed by many dual citizens who feel truly betrayed by the Canadian Government. The Isaac Brock Society also provides background information.
Under the IGA, Canadian banks and other intermediaries will be collecting information for the US Foreign Account Tax Compliance Act (FATCA). This is information was not previously provided to CRA or the IRS. Databases will be built to allegedly catch 'tax evaders', but that repository will include exceptional amounts of information on all identified "US persons". Effective July 1st information is to be collected, exemptions are made for registered savings plans and 'local banks'. For more information an overview is published by the CBA.