June 13, 2014
Partner Craig Maurice provides his insight for an Advisor.ca article on the additional tax-filing complications for Americans living in Canada, including reporting requirements for the U.S. Report of Foreign Bank and Financial Accounts (FBAR). Below is an excerpt of the article.
Another deadline to keep in mind is June 30, when the Report of Foreign Bank and Financial Accounts, or FBAR, is due. It applies to any American with a total of $10,000 in foreign chequing, saving or investment accounts.
“The genesis of the FBAR was really targeted at Americans trying to hide money offshore,” said Craig Maurice, a tax specialist with Torys LLP in Calgary.
There are stiff penalties on the books for U.S. expats who fail to properly file their FBAR. For those who weren’t aware of their obligations and made an honest mistake, the fine is $10,000 per error. But those found to be deliberately dodging the tax man face fines of up to 50 per cent of what’s in their accounts, or $100,000.
“That’s obviously a really huge stick that the IRS holds over people,” said Maurice.
To read the full article, click here.
For more on FBAR reporting obligations, see our recent Tax bulletin on the subject here.