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ARTICLE · 01 SEPTEMBER 2015

Decision In Canadian Challenge To FATCA Expected Soon

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The Canadian Federal Court heard oral arguments on August 4 and 5 in a lawsuit that challenges the law that implements the intergovernmental agreement between Canada and the U.S. relating to the Foreign Account Tax Compliance Act.

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The Canadian Federal Court heard oral arguments on August 4 and 5 in a lawsuit that challenges the law that implements the intergovernmental agreement1 between Canada and the U.S. relating to the Foreign Account Tax Compliance Act2. This author attended the hearing. Surprisingly, the court committed to rule on the plaintiffs' motion for summary trial by September 30, the date by which the first transfer of information from Canada to the U.S. is required under the IGA3.

Two dual Canadian-U.S. citizens commenced the lawsuit on August 11, 2014,4 in the Canadian Federal Court in Vancouver, British Columbia. The impending ruling could have profound effects on the application of FATCA in Canada as well as Canada's ability to implement the OECD's common reporting standard (CRS) for the automatic exchange of information.

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