General
FATCA and SSQ Financial Group
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The Foreign Account Tax Compliance Act (“FATCA”) is an American law aimed at fighting tax evasion by U.S. citizens and residents who hold “reportable financial accounts” outside the U.S.
Under FATCA, non-U.S. financial institutions, including Canadian insurance companies such as SSQ Financial Group, are required to identify accounts held by “U.S. persons” and report related information every year to the Canada Revenue Agency.
As provided for in the Intergovernmental Agreement for the Enhanced Exchange of Tax Information under the Canada-U.S. Tax Convention, published in February 2014, SSQ is considered to be a “deemed compliant” financial institution and undertakes to comply with the rules applicable to “local client base financial institutions” with respect to FATCA. Qualifying as “deemed compliant” means a much lighter administrative burden.