IFIC commends Canadian government for exemptions and relief secured under FATCA
The Investment Funds Institute of Canada (IFIC) has commended the federal government for the exemptions and relief it has secured on behalf of Canadian investors through the Intergovernmental Agreement (IGA) that it has negotiated with the US to implement the Foreign Account Tax Compliance Act (FATCA).
Under the IGA, registered plans, including RRSPs, RRIFs, RESPs, RDSPs and TFSAs, are exempted from FATCA and will not be reportable. This will benefit the millions of Canadians who hold mutual funds in these types of plans.
The agreement safeguards Canadian investors by ensuring that Canadian financial institutions will not be required to close client accounts or send any reporting directly to the IRS.
“On behalf of Canadian investors, we want to recognise the government for its dedication in working to reduce the impact of FATCA on Canadian investors,” says Joanne De Laurentiis, IFIC’s president and CEO. “The mutual funds industry is committed to a strong, stable investment sector where investors can realise their financial goals. The exemptions and relief secured by the Canadian government under the IGA will provide welcome relief to Canadian investors who may be subject to US tax rules as they save for retirement and other important life events.”
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