Hillis v. Canada (Attorney General), 2015 FC 1082 -- summary under Article 25

By services, 28 November, 2015

One of the challenges brought by the appellant to the Canadian FATCA legislation (i.e., the Canada-United States Enhanced Tax Information Exchange Agreement Implementation Act (enacting the "IGA") and ss. 263 to 269 of the Income Tax Act) was that "the collection and disclosure of the taxpayer information contemplated by the IGA subjects US nationals resident in Canada to taxation and requirements connected therewith that are more burdensome than the taxation and requirements connected therewith to which Canadian citizens resident in Canada are subjected" contrary to Art. XXV of the Canada-U.S. Income Tax Convention (para. 62). In rejecting this argument (as well as rejecting other Treaty-based arguments), Martineau J stated (at para. 73):

[T]he burden of disclosing banking information is imposed by Part XVIII on financial institutions…and to the extent that the IGA and Part XVIII of the ITA impose burdensome requirements connected to taxation of US nationals resident in Canada, such burden is equally imposed on Canadian nationals in similar circumstances.

See summary under Treaties – Art. 27.

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FATCA requirements were reciprocal and were primarily imposed on financial institutions
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