Two American-Canadian dual citizens living north of the border have
filed a lawsuit in the Federal Court of Canada challenging the
constitutionality of the country's involvement with the USA's Foreign
Account Tax Compliance Act (FATCA).
Under the terms of FATCA, effective in Canada since last month, the
Government of Canada will hand over private bank account information
relating to US citizens and their families living in Canada to
the US Internal Revenue Service.
The two plaintiffs are being supported by the Alliance for the
Defence of Canadian Sovereignty. The lawsuit argues that FATCA
violates provisions of the Canadian Charter of Rights and Freedoms,
which guarantees life, liberty, and security of person; security
against unreasonable search and seizure; and equal protection of law
without discrimination. The complaint also suggests that FATCA
goes against the principle "that Canada will not forfeit its
sovereignty to a foreign state."
The pair have not lived in the USA since early childhood, and they
never obtained a US passport or developed meaningful ties with the
USA. One of them asked why she is being treated as a potential US tax
evader merely because of her place of birth, stating: "This was
not the Canada our brave Fathers of Confederation envisioned. FATCA
destroys our unity and we cannot permit the loss of our sovereignty."
This lawsuit is accompanied by a separate submission to the United
Nations, by concerned citizens worldwide, that the USA's "place of
birth taxation," for which FATCA is an enforcement tool, violates
fundamental human rights.
The latest statistics from the US Treasury Department show that a
record 1,577 United States taxpayers gave up their passports or green
cards in the first half of 2014.
Tags: Treaties | Foreign Account Tax Compliance Act (FATCA) | FATCA | Tax Treaties | Canada | United States | Compliance | Expats | Tax