FATCA Is Not Your Enemy

Over the past six years, the United States has become increasingly concerned that Americans are stashing money offshore, essentially evading U.S. tax. The IRS has increased filing requirements around foreign assets through the Foreign Account Tax Compliance Act (FATCA), which requires financial institutions around the world to report activities of U.S. investors. Banks that don't comply with FATCA are punished severely; they can effectively be shut out of the U.S. financial system.

The U.S. is not alone in this concern. Governments around the world are under pressure when it comes to both taxes and spending, so lots of countries are taking on similar initiatives. The CRA recently imposed much heavier reporting requirements around foreign assets. Because of this change, your accountant might have checked in with you more than usual this past spring.