Part 5
Overview: Canada-United States Enhanced Tax Information Exchange Agreement Implementation Act

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This Part enacts the Canada-United States Enhanced Tax Information Exchange Agreement Implementation Act, which comes into force on Royal Assent. This Act implements the intergovernmental agreement, set out in the schedule of this Act, with the U.S. signed on February 5, 2014. The intergovernmental agreement takes into account the objectives and provisions of the U.S. Foreign Account Tax Compliance Act and includes exemptions and other relief from the requirements of the Foreign Account Tax Compliance Act. These exemptions are for financial institutions such as smaller deposit-taking institutions, including credit unions, with assets under $175 million, as well as exemptions for certain accounts including registered accounts such as Tax-Free Savings Accounts, Registered Retirement Savings Plans, Registered Disability Savings Plans, etc.

This Part also amends the Income Tax Act to add new Part XVIII, which requires certain Canadian financial institutions to report certain information with respect to accounts held by certain U.S. persons to the Canada Revenue Agency. These rules adopt by reference definitions and procedures described in the agreement set out in the schedule to the Canada-United States Enhanced Tax Information Exchange Agreement Implementation Act. Part XVIII of the Income Tax Act comes into force on the day in which the agreement, set out in the schedule to the Canada-United States Enhanced Tax Information Exchange Agreement Implementation Act, enters into force.

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