Vic Toews, Member of Parliament for Provencher applauded comments made by Canada’s Finance Minister Jim Flaherty regarding the impact of the IRS’s Foreign Bank Account Report (FBAR) filing requirements on Canadian citizens.
The U.S. government requires its citizens living abroad, including in Canada, to file income tax returns and associated tax forms – even if those U.S. citizens do not have to pay any U.S. income tax because they already pay Canadian income tax, and even if they have dual citizenship with Canada.
“Many constituents have contacted me to express their concern about this proposed legislation,” said Toews. “While I appreciate efforts to combat tax evasion, and respect the sovereign right of the United States to determine its own tax legislation, most of the Canadian citizens affected by these measures have made innocent errors of omission in failing to file the IRS paperwork that they were not aware was required.”
Toews was referring to comments Minister Flaherty made in an op-ed piece in which Flaherty indicates that “the threat of prohibitive fines for simply failing to file a return they were unaware they had to file, is a frightening prospect that is causing unnecessary stress and fear among law abiding hardworking dual citizens. We support efforts to crack down on legitimate tax evasion. These measures, however, do not achieve this goal.” (Globe and Mail, September 16, 2011)
“In most cases these are honest and law-abiding people who have been caught completely off-guard by these requirements,” said Toews.
