May 2017 Edition

 
 

Vol. 7 No. 5

Investment and Financial markets

Regulatory and Compliance

Canada is one of 110 signatories to the Common Reporting Standard (CRS), an international agreement to prevent tax evasion that will result in an upcoming amendment to Canada’s Income Tax Act. As of July 1, 2017, the federal government will require all Canadian financial institutions, including Desjardins Group, to ask clients who open new accounts to declare where they reside for tax purposes. This measure will apply to both individual and business account holders. A similar measure is already in place for the Foreign Account Tax Compliance Act (FATCA), which applies to individual and business account holders who have accounts in Canada, but who are also U.S. citizens or have a U.S. tax residency. We will be required to provide this information to the Canada Revenue Agency (CRA), which will then share it with the tax authorities of the other signatory countries.

Repercussions for GRS at the time of enrolment in a Non-Registered plan

As of July 1, 2017, participants and business clients will need to confirm their tax residency when they enrol in a new Non-Registered plan. We will be modifying Desjardins Insurance’s enrolment forms, plan applications and systems so that we can record this information.

Please note that the majority of registered accounts (RRSP, RRIF, TFSA, etc.) are not subject to these regulations and existing non-registered accounts will not need to be verified.

For more details, you can refer to the FAQ on the Canada Revenue Agency External link. Opens in a new window. website.

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