Foreign Account Tax Compliance Act (FATCA)/Part XVIII of the Income Tax Act

The Foreign Account Tax Compliance Act ("FATCA") is U.S. tax legislation passed in 2010. FATCA is intended to prevent "U.S. persons" (individuals and entities) from evading U.S. tax using financial accounts held outside of the United States.

Expand When does FATCA take effect? 

July 1, 2014.

Expand Who does FATCA impact? 

FATCA impacts most Financial Institutions who must identify and report certain financial accounts for U.S. persons and specific U.S. owners of non-U.S. entities. Financial accounts include (but are not limited to) bank, brokerage and other custodial accounts.

Expand As a TD customer, where can I go to learn more about FATCA? 

For more information about FATCA, please contact a tax advisor. Or, you can visit the Canada Revenue Agency’s website for background information on FATCA.

Expand Who is considered a U.S. person?  

You are considered a U.S. person for U.S. tax purposes if you are a:

  • Citizen or resident of the U.S. (including a greencard holder);
  • U.S. corporation, U.S. partnership, U.S estate or U.S. trust

If you spend considerable time in the U.S. in one year or over a period of years you may also be considered a U.S. person. Please visit the IRS website or consult a tax advisor for more information.

Expand Why is Canada complying with U.S. law? 

On February 5, 2014, the Canadian Government signed an Intergovernmental Agreement (IGA) with the U.S. Government. Without an agreement in place, obligations to comply with FATCA would have been imposed on Canadian Financial Institutions and our customers as of July 1, 2014. Under the agreement, Financial Institutions in Canada will not report any information directly to the Internal Revenue Service (IRS). Rather, information on accounts held by U.S. persons will be reported to the Canada Revenue Agency (CRA). The CRA will then exchange the information with the IRS through the existing provisions and safeguards of the Canada-U.S. Tax Convention, which is consistent with Canada's privacy laws. In addition, Canada negotiated significant exemptions (please refer to "Which financial accounts are excluded"). The agreement is consistent with Canada’s support for recent G-8 and G-20 commitments intended to fight tax evasion globally and to improve tax fairness.

Expand What information do I need to provide to TD? 

We may request you complete a Tax Form (which may include a W-9, W-8 or a similar form) to verify your status for FATCA purposes. We may also ask you to provide additional documentation (this could include, but is not limited to, government-issued identification).

Expand What is a Reportable Account under the IGA? 

For individuals, the following accounts may be reportable:

  • An account held by one or more U.S. Persons
  • An account held by a customer who has not provided the information requested by TD (within the required timeframe) may be reported

Accounts held by certain U.S. entities may be reportable.

Expand What is the benefit of an Intergovernmental Agreement (IGA)? 

The agreement addresses privacy concerns, provides significant exemptions, and reduces the circumstances where withholding tax applies (e.g. withholding will not apply to individuals).

Expand Is every Financial Institution (FI) impacted by FATCA? 

Every Canadian FI will be required to comply with the federal legislation that implements the IGA. FIs in non-IGA countries that do not comply with FATCA may be subject to a 30% withholding tax on U.S. source income.

Expand How could FATCA impact me? 

The impact could vary:

  • If you are an accountholder that is an individual (including sole proprietorships) or an entity (i.e. businesses, trusts, etc.);
  • If you have an existing financial account or you are opening a new account

TD may ask you to provide additional information or documentation to verify your status for FATCA purposes for any of the scenarios above. If you do not provide this additional documentation upon request, TD may be required to report your account information to the CRA.

Expand What factors make TD believe I am a U.S. person? 

Under the IGA, there is information that you can provide to TD that may give reason to believe you are a U.S. person (i.e. U.S. address, U.S. place of birth, U.S. telephone number, U.S. place of incorporation, etc.).

Expand If I have a U.S.-dollar account or investment (in Canada or the U.S. at TD Bank, America's Most Convenient Bank), does this classify me as a U.S. person? 

The definition of a U.S person is based on the account holder’s information, rather than the type of account that is held.

Expand If I have dual citizenship with the U.S., am I considered a U.S. person? 

Yes, please refer to the “Who is considered a U.S. person” for further information.

Expand If I am a Snowbird, am I considered a U.S. person? 

You may be considered a U.S. person if you spend considerable time in the U.S. in one year or over a period of years. Please visit the IRS website or consult a tax advisor for more information.

Expand If a joint account is held by a U.S. person and a non-U.S. person, what is the FATCA impact? 

All accountholders of the joint account may be required to provide additional documentation to determine their status for U.S. tax purposes. Information on the U.S. person, including the full balance of the account, may be reportable to the CRA.

Expand I was born in the U.S., but have lived outside the U.S. my whole life. How does FATCA impact me? 

Generally, if you were born in the U.S., you are considered a U.S. person. However, there are circumstances where an individual born in the U.S. is not considered a U.S. person, including those who have renounced their U.S. citizenship.

TD may contact you if we require additional documentation to determine if you are a U.S person.

Expand What information about U.S. persons will be reported to the CRA? 
We may report the following information to the CRA in 2015 for reportable accounts, identified in 2014
  • Name
  • Address
  • U.S. TIN or Date of Birth
  • SIN (Canada only)
  • Account number
  • Account balance or value

Additional financial data will be required in 2015/2016.
Expand Does the Canadian government currently exchange information provided by Financial Institutions? 

Yes, Financial Institutions in Canada do provide information to the Canadian and U.S. governments under current tax laws and treaties. Please refer to the Department of Finance website for a list of current agreements.

Expand Will my information be shared? 

Refer to “Why is Canada complying with U.S. law”.

Expand Which financial accounts are impacted? 

Impacted financial accounts include most:

  • Bank accounts,
  • Mutual funds,
  • Brokerage accounts,
  • Custodial accounts,
  • Annuity contracts (including segregated fund contracts),
  • Certain life insurance policies with a cash value, and
  • Credit balances on credit cards or revolving credit products (amount that TD Bank owes you)
Expand Are credit products impacted? 

If you have a credit balance (an amount that TD Bank owes you) on a credit card or a revolving credit product, you may be impacted.

We will contact customers who must complete documentation for FATCA purposes.

Expand Which financial accounts are excluded? 

The following registered products are excluded:

  • Registered Retirement Savings Plans (RRSPs)
  • Tax Free Savings Accounts (TFSAs)
  • Registered Disability Savings Plans (RDSPs)
  • Registered Pension Plans (RPPs)
  • Registered Retirement Income Funds (RRIFs)
  • Pooled Registered Pension Plans (PRPPs)
  • Registered Education Savings Plans (RESPs)
  • AgriInvest Accounts
  • Deferred Profit-Sharing Plans (DPSPs)
Expand I am a business owner. Do I have to provide separate forms for myself and the business? 

FATCA documentation is completed at the account holder level. We rely on the account holder to complete the forms for any account(s) in question. We will clearly state which party needs to complete a form or provide further documentation.

Expand As an individual, what should I do if my circumstances change after I submit the requested documentation? 

If your U.S. status changes (U.S. to non-U.S. and vice versa), you must notify TD Bank within 30 days with supporting documentation.

Expand Why did I receive multiple requests for FATCA information? 

TD Bank will attempt to consolidate customer account information to the extent allowable. You may receive additional requests for documentation if you have multiple products with TD Bank. You must complete each request.

Expand Does the required documentation have to be provided in original format or can I scan/fax it in? 

TD will only accept original documentation.

Expand What is acceptable identification to comply with FATCA (for individuals)? 

The following non-U.S. documentary evidence are generally acceptable for Canadian residents (as of June 27, 2014):

  • Passport
  • National Identity Card
  • Driver's license
  • Provincial Health Insurance Card
  • Birth Certificate provided by an individual under the age of 21
  • Government-issued Age of Majority Card
  • Canadian Citizenship Card
  • Record of Landing (IMM1000) or Confirmation of Permanent Residence (IMM 5292) issued prior to 1/1/2004
  • Permanent Residence Card
  • Canadian Forces Identification Card issued by the Canadian Department of National Defence
  • A Government-issued Certificate of Indian Status
  • Social Insurance Number Card issued by the Government of Canada
  • Document or card, bearing the individual’s photograph and signature, issued by any of the following authorities or their successors:
    • Insurance Corporation of British Columbia
    • Alberta Registries
    • Saskatchewan Government Insurance
    • Department of Service Nova Scotia and Municipal Relations
    • Department of Transportation and Public Works of the Province of Prince Edward Island
    • Service New Brunswick
    • Department of Government Services and Lands of the Province of Newfoundland and Labrador
    • Department of Transportation of the Northwest Territories
    • Department of Community Government and Transportation of the Territory of Nunavut
  • Alberta Photo Identification Card
  • B.C. Identification card
  • B.C. Driver’s License and Services Card
  • B.C. Services Card (Photo Card)
  • Government of Newfoundland and Labrador Photo Identification Card
  • Nova Scotia Photo Identification Card
  • Prince Edward Island Voluntary ID
  • Saskatchewan Mandatory Photo ID
  • Ontario Photo Card
  • Manitoba Identification Card
  • NEXUS Membership card
Expand What if I fail to provide additional information or documentation that is requested of me within the specified timeframe? 

TD may be required to report your information to the CRA. As per the information exchange tax agreement (which is expected to become Canadian law by July 1st), Canadian Financial Institutions will be required to report certain information on U.S. persons or customers that do not respond to TD's request for information, to their federal tax authority (i.e. CRA). This information may be exchanged with the IRS as part of the agreement.

Expand What happens if I'm reported to the IRS? 

Reporting by TD should not result in any increased U.S. tax liability if you are already meeting your U.S. tax filing obligations. Please contact a tax advisor to discuss your personal tax situation.

Expand Can a TD employee help me complete these forms? 

You must complete all tax forms independently. If you need additional support, you should refer to a tax advisor for assistance or review the form instructions.

Expand My account is a joint account. Do we both have to fill out the documentation? 

It depends on the circumstances of the account. There may be situations where you must provide documentation for both account holders and other circumstances where documentation is only needed for one account holder.

TD will contact customers who must complete documentation for FATCA purposes.

Expand Are spouses or children of U.S. persons impacted by FATCA? 

TD will not assume that accounts held by the spouses or children of identified U.S persons are also U.S. persons.

TD will contact customers who must complete documentation for FATCA purposes.

Expand I closed my TD accounts. Why am I being asked to complete forms? 

Even though your account is closed, you were identified as a possible U.S. person before closing your account. TD has the obligation to properly document the account. If you do not provide this documentation upon request, TD may be required to report your account information to the CRA.

Expand I made an error while filling out my tax form. Can I use liquid paper to correct it? 

A tax form is a legal document and liquid paper (or white out) is not acceptable; please complete a new form. Forms are available for download here.

Expand Why did TD request information, but my other Financial Institution (FI) did not? 

Information provided by customers could vary among FIs and each FI has different business and system processes. Please refer to "What factors make TD believe I am a U.S. person".

Expand Where can customers obtain tax advice? 

TD does not offer tax advice to customers. Customers should contact a tax advisor. For background information on FATCA, visit the Canada Revenue Agency (CRA) website.

Expand What is a TIN? 

A Taxpayer Identification Number (TIN) is an ID number that is used by the Internal Revenue Service (IRS) in the administration of tax laws (similar to a SIN in Canada). Both the Social Security Administration (SSA) and the IRS issue a TIN.

Expand What is a Global Intermediary Identification Number (for business customers only)? 

A Global Intermediary Identification Number (GIIN) is a 19-character identification number issued by the IRS when a non-U.S. Financial Institution registers for FATCA purposes. Most Canadian Financial Institutions are required to obtain a GIIN.

The above information is intended to provide general guidance only, and is not an exhaustive analysis of all provisions of FATCA. The above information should not be construed as legal or financial advice.

For non-U.S. persons

For use by TD Canada Trust personal and sole proprietor customers only: Self-Certification of Non U.S. Status – Individuals

For use by TD Wealth customers: Form W-8BEN (Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding and Reporting (Individuals) and Instructions

For U.S. persons

Form W-9 and instructions (Request for Taxpayer Identification Number and Certification)