Hi all,
I have received a letter from my bank to provide CRS self certification and Tax identification number (SIN) as India has signed CRS agreement with other member countries to share account and interest information from non-residents.
1) Has anyone else received this letter ?
2) Do you know if the information will be shared for last year (2017) only and applicable for NRE and NRO accounts ?
3) If the information will be shared about NRO accounts as well, will India share the taxes paid in India on the interest earned from NRO accounts OR there are other steps that would have to be done to declare that to CRA ?
4) For NRE interest from last year, should that be included on 2017 Canadian Tax return since that information will be shared going forward ?
5) Anything else which may require Disclosure through VDP ?
6) Also, can someone please provide a recommendation for Chartered accountant who specializes in foreign income/tax scenarios and can advice ?
Thanks all for your input.
Ignore the letter for now.
Its mostly for USA residents as the US tax guys - IRS are getting on everyone's case.
Canadian banks & Canada tax guys - CRA don't really care about small mom & pop guys like us for the time being.
Indian banks are stupid, they just see NRI & Foreign citizen & they send a standard generic letter to everyone in their database, even if it doesn't apply to you & your foreign country.
They don't distinguish between US, Canada, UK, Australia, UK, New Zealand & Middle East.
Let sleeping dogs lie. Don't poke the bear in the eye.
For the time being keep Canadian banks & CRA and Indian banks & Indian Income Tax Dept. separate. Its going to be at least 10-15 years before things are shared between the 2.
Till then relax & chill.
I don't think this letter is for US residents as those letters were issued to comply with FATCA whereas CRS is agreement between >80 countries , including India and Canada:
http://nriinformation.com/articles6/nri_accounts_tax_reporting.htm
http://nareshco.com/blog/?p=1296
Quote:
Originally posted by MeagainMe
I don't think this letter is for US residents as those letters were issued to comply with FATCA whereas CRS is agreement between >80 countries , including India and Canada:
http://nriinformation.com/articles6/nri_accounts_tax_reporting.htm
http://nareshco.com/blog/?p=1296
thanks Mitron though I don't agree that it should be ignored as once the information is shared it may have bigger impact on people in Canada.
Do you (or someone else) know a good/reputable accountant in Canada who can help on this matter and can provide guidance and can help with individual's scenario as per his/her fee structure ?
FROM KPMG. Slightly Modified. IT was based upon fighting Money Laundering System.:
What is CRS..: What is the CRS?
The Common Reporting Standard (CRS), developed in response to the G20 request and approved by the OECD Council on 15 July 2014, calls on jurisdictions to obtain information from their financial institutions and automatically exchange that information with other jurisdictions on an annual basis. It sets out the financial account information to be exchanged, the financial institutions required to report, the different types of accounts and taxpayers covered, as well as common due diligence procedures to be followed by financial institutions. Their parameters can be found in their own definition of what CRS is.. SO ASK THE BANKS THAT DEMAND THE INFO FROM YOU.
YOU HAVE TIME TILL MAY 1st, 2018
Just to report : Recent tax developments from around the globe for the week of 26 - 30 March 2018
As of July 1, 2017, reporting financial institutions that must report under the CRS rules will have to be ready to request CRS self-certifications from new customers that open a qualifying financial account. As a result, financial institutions must identify all products and accounts that will be subject to the CRS rules, and ensure that they have procedures in place to request self-certifications for any new accounts, as well as for accounts where they identify any change in circumstances. These requests should be included as part of the on-boarding processes for new accounts.
Reporting financial institutions should also begin to plan their approach to completing due diligence procedures on certain qualifying pre-existing individual and entity accounts before 2020 (or, in some cases, 2019).
FOR CANADA..: Background.
Canada's CRS rules require reporting financial institutions to identify accounts held by tax residents of jurisdictions outside of Canada and the United States (including persons with dual or multiple tax residency) and report specific information relating to these accounts directly to the CRA each year. Under these rules, financial institutions must report information such as account balances, interest, dividends received and proceeds from the sale of financial assets. Individuals and certain entities, including corporations, trusts, partnerships, joint ventures and other Canadian resident entities that are not considered Canadian financial institutions, are generally required to self-certify under these rules to any reporting financial institution with which they hold a financial account.
A reporting financial institution must file a prescribed information return with the CRA by May 1 of each year, starting May 1, 2018. This return must provide information relating to reportable accounts that it maintained at any time during the preceding calendar year and after June 30, 2017.
Canada's CRS rules include concepts that are largely drawn from the U.S.-based Foreign Account Tax Compliance Act (FATCA), which has a similar focus on financial accounts and the financial institutions that maintain them. As a result, Canadian financial institutions may be able to leverage certain aspects of the systems they currently have in place to meet the Canadian rules that require them to comply with FATCA.
For more details see TaxNewsFlash-Canada 2016-40, "Canadian FIs - Start Collecting Non-Resident Account Details" and TaxNewsFlash-Canada 2017-18, "FIs - CRA Gives Details on CRS Approach for 2017".
New accounts
For new accounts that are opened after June 30, 2017, reporting financial institutions are generally required to collect self-certifications to identify whether an account is reportable. Financial institutions must be ready to request self-certifications on these accounts and, once received, to validate the information provided.
For this purpose, the CRA has created self-certification forms that can be used by financial institutions that do not wish to create their own forms. Financial institutions will need to determine whether they wish to use CRS only forms or whether they wish to use combined CRS/FATCA forms beginning July 1, 2017.
Pre-existing accounts
A reporting financial institution is also required to carry out specific due diligence procedures on pre-existing individual and entity accounts that were opened before July 1, 2017. Among other things, a reporting financial institutions generally must review its customer files for indicators of account holders with foreign tax residency and attempt to confirm with the account holders whether they are in fact residents of those jurisdictions.
Reporting financial institutions must complete enhanced due diligence procedures before 2019 for pre-existing individual accounts with an aggregate balance or value that exceeds US$1 million on June 30, 2017. For all other types of accounts, due diligence procedures generally must be completed before 2020.
Information is current to June 20, 2017. The information contained in this publication is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation. For more information. Contact the BANK That is currently DEMANDING The Info.
FH.
List of countries..:
http://nriinformation.com/articles6/index_htm_files/CRS-Tax-Sharing-Countries-Nov2016.pdf
Quote:
Originally posted by MeagainMe
thanks Mitron though I don't agree that it should be ignored as once the information is shared it may have bigger impact on people in Canada.
Do you (or someone else) know a good/reputable accountant in Canada who can help on this matter and can provide guidance and can help with individual's scenario as per his/her fee structure ?
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