Taxman may have a bead on offshore tax havens: Government says - Macleans.ca
 

Taxman may have a bead on offshore tax havens: Government says


 

OTTAWA – The Canadian government says it may be getting access to 2.5 million files on offshore tax havens that were leaked to the media last month.

The U.S. announced Thursday it was teaming up with Australia and the U.K. in an effort to expose tax cheats from around the world.

The American Internal Revenue Service says it has acquired substantial data about assets hidden in Singapore, the British Virgin Islands, the Cayman Islands and the Cook Islands.

Revenue Minister Gail Shea says Britain has agreed to share information relevant to Canada and Canadian officials have made formal requests to their American and Australian counterparts.

The statement didn’t make it clear whether the U.S. and Australia have agreed to share the information but the IRS has said it was willing to share its information with other countries.

The offshore tax information leaked to the media last month came via the International Consortium of Investigative Journalists.

The CBC was one of the media outlets that received the information but refused to hand it over to the federal government.

It was not immediately clear why Canada wasn’t included in the investigation being launched by the U.S. and the other two countries.

On Wednesday, the Canadian government announced it was creating a team of six to 10 bureaucrats that would be devoted to pinpointing tax evaders.


 
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Taxman may have a bead on offshore tax havens: Government says

  1. This is not really news. You are seeing more and more news reports about “Tax cheats” and “offshore tax havens” and about cooperation between other countries and Canada regarding what people have in their bank accounts. These articles are all about one thing. The Canadian government is preparing the Canadian people for an announcement of an IGA (Inter government agreement) with the USA that will allow Canadian Banks to share peoples account information with the US IRS. The US law that is about to come into effect is FATCA (Foreign Account Tax Compliance Act). It is a US law that requires all world banks to report to the US IRS the account information of all US citizens. Even if a US citizen lives and works in another country, the IRS wants to know how much money they have. The US is the only country in the world that applies tax to their citizens even if they don’t live or work there. There are over 1 million US citizens living and working in Canada and the IRS wants to know how much money they make. It is against the Canadian Charter or Rights for Canadian banks to even ask a persons nationality before offering them service. The IGA will change that. FATCA is a US law that forces Canada to give up some of it’s sovereignty and effectively and make the Canadian financial system subservient to the US IRS. Many Canadians may not even know they may be subject to this law. If you have a parent who is/was a US citizen at one time, born in the US but lived your life in Canada, etc.