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Did anyone else get this email from Motive?
March 28, 2018
9:05 am
stoney
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March 28, 2018
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Effective July 1, 2017, all Canadian financial institutions must maintain a record of the completed Canadian Revenue Agency (CRA) Form “Declaration of Tax Residence for Entities – Part XVIII and Part XIX of the Income Tax Act” for each legal entity client who opens an account. We have enclosed the form for your convenience. We ask that you complete the form (either the enclosed version or the CRA fillable form) and return it to us via one of the following methods: ...

I have never had this request from any of my other banks.
Why do they need this? They already have all the information that the form asks for.

March 28, 2018
9:14 am
Peter
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I have not received this e-mail, at least not yet!

March 28, 2018
9:19 am
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It's all about "money-laundering" AND the United States quest to track down every cent of income from it's citizens - from the Form -

If you are an entity and you are planning to open a financial account or if you already have a financial account with a Canadian financial institution, it may ask you to fill out this or a similar form. For more information on how to fill out this form, see the General information section at the end of the form. You will also find in that section the definitions of terms we use on the form.

• Canadian financial institutions are required under Part XVIII and Part XIX of the Income Tax Act to collect the information you provide on this form to determine if they have to report your financial account to the Canada Revenue Agency (CRA). The CRA may share that information with the government of a foreign jurisdiction that a person identified on this form is a resident of for tax purposes. In the case of the United States, the CRA may also share the information with that country’s government if the person is a U.S. citizen. You can ask your financial institution if it reported your financial account to the CRA and what information it gave.

For this form, an entity includes a corporation, a partnership, a trust, an association, a fund, a joint venture, an organization, a syndicate, or a foundation. If you are a sole proprietorship, fill out Form RC518, Declaration of Tax Residence for Individuals – Part XVIII and Part XIX of the Income Tax Act.

----------------------------------------------

I received this letter and a form, three years ago, from the credit union where I administer a trust account

In reference to the Foreign Account Tax Compliance Act (also known as FATCA) we are required to acquire additional information from applicable members. During a recent review of your membership it was determined that we require additional information from you. The Credit Union is held responsible for gathering personal information from you to comply with legal and regulatory requirements.

The new requirements aim to establish whether an entity account holder has significant links to the U.S. If the account holder is a passive Non-Financial Foreign entity, we must determine if any of the controlling persons on the account are a specified US person and require a self certification to be completed.

March 28, 2018
9:53 am
James
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stoney said
Effective July 1, 2017, all Canadian financial institutions must maintain a record of the completed Canadian Revenue Agency (CRA) Form “Declaration of Tax Residence for Entities – Part XVIII and Part XIX of the Income Tax Act” for each legal entity client who opens an account. We have enclosed the form for your convenience. We ask that you complete the form (either the enclosed version or the CRA fillable form) and return it to us via one of the following methods: ...

I have never had this request from any of my other banks.
Why do they need this? They already have all the information that the form asks for.  

Stoney, I would suggest that you not complete the form. I would recommend calling Motive at the number on their website here:

https://www.motivefinancial.com/ContactUs/

Do not use any links, numbers or contact information in the email you received as quite often fraudulent emails are sent out in this fashion to be used for identity theft or to capture bank account information.

Good luck!

March 28, 2018
11:13 am
Doug
British Columbia, Canada
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Agreed, it sounds like it's just related to FATCA (i.e., U.S. persons, including dual Canadian/U.S. citizens). Not declaring your U.S. citizenship to a Canadian bank, pursuant to updated tax treaties, is a crime (probably under tax law more so than criminal) both in the U.S. and Canada. 🙂

It could also be part of an expanded cross-border account data gathering exercise to include Canadians with only Canadian citizenship (the government has talked about such measures in successive recent federal budgets), but I doubt it as we would've heard something about it. I think Motive Financial is just "behind the eight ball" here, or makes it an annual reminder.

Cheers,
Doug

March 28, 2018
11:20 am
Doug
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Yep, looks like it's a FATCA form. I see it's been standardardized. The FIs are getting cheap, not making their own compliant versions of the form branded with their own logos and helpful instructions, like they do for T2033 forms in many cases still. Too bad. 🙁

BDO Canada article explains it more:
https://www.bdo.ca/en-ca/insights/tax/tax-alerts/tax-alert-what-is-your-fatca-status/

If you are not a U.S. person or entity (i.e., no U.S. citizenship of any kind, no U.S. property over certain value, etc.), I would contact Motive and just let them know it doesn't apply to you and confirm that they've got your status correctly updated and further that this was just a mailing to all customers, compliant or not. 🙂

Cheers,
Doug

March 28, 2018
11:30 am
gicjunkie
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James said

Stoney, I would suggest that you not complete the form. I would recommend calling Motive at the number on their website here:

https://www.motivefinancial.com/ContactUs/

Do not use any links, numbers or contact information in the email you received as quite often fraudulent emails are sent out in this fashion to be used for identity theft or to capture bank account information.

Good luck!  

Got a mailed request from TD Canada Trust a while back regarding this issue. I phoned them to confirm what they needed and why. They just needed to know that I was a Canadian citizen, living in Canada. A few "yes" or "no" answers and I was done. No big deal.

March 28, 2018
12:09 pm
toto
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I received the form too. Have members on this blog filled it out?

March 28, 2018
12:35 pm
stoney
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Thanks to for the replies.

It isn't really a big deal, and I'm fine with them doing their due diligence, but just kind of strange since they say; "all Canadian financial institutions must maintain a record of the completed Canadian Revenue Agency (CRA) Form “Declaration of Tax Residence...", when non of my other financial institutions have ever asked for this form.

just called motive and they say they are requesting this from all clients who opened an account after July 2017

March 28, 2018
12:42 pm
John Wayne (Marion)
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March 28, 2018
1:45 pm
Loonie
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I just got home from one of the Big Banks, where I was making a change in my accounts.
While there, I was asked to sign this form. She said it would be going out to everyone in due course. She was just getting it out of the way since I was there. Required by law.
I do not have a business account.

March 28, 2018
2:36 pm
Kidd
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So.... if you deal with a few different banks, you will fill out this same form a few different times?

I feel a rant brewing.

When i do my taxes, i check off a box, Canadian yes or no? foreign property yes or no? Isn't this enough?

"Your" government is about to spend a billion dollars sorting out 100 million forms. Wait... have any of you moved? Hey, let's fill out these forms every year just to track movement

Don't we also do a census which covers all of this?

Is this a "Liberal" make a new unnecessary job for a hard done by immigrant program?

sf-yell

March 28, 2018
2:49 pm
Top It Up
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^^^ TOO FUNNY ^^^

Here's the info for Individuals - from the Form

Declaration of Tax Residence for Individuals – Part XVIII and Part XIX of the Income Tax Act

• If you are an individual and you are planning to open a financial account or if you already have a financial account with a Canadian financial institution, it may ask you to fill out this or a similar form.

• Canadian financial institutions are required under Part XVIII and Part XIX of the Income Tax Act to collect the information you provide on this form to determine if they have to report your financial account to the Canada Revenue Agency (CRA). The CRA may share this information with the government of a foreign jurisdiction that you are resident of for tax purposes. In the case of the United States, the CRA may also share the information with that country’s government if you are a U.S. citizen. You can ask your financial institution if it reported your financial account to the CRA and what information it gave.

• Each account holder of a joint account has to fill out a declaration of tax residence form.

• Fill in all sections of this form that apply to you. If you do not have all the necessary information when you fill out the form, you may be given up to 90 days to give the missing information to your Canadian financial institution. If you do not give the missing information to your financial institution within the specified time frame, it may have to report your financial account to the CRA.

-----------------------------------------------------

The Government GIVING the strong arm to the financial institutions - DO IT OR ELSE

If you do not give the missing information to your financial institution within the specified time frame, it may have to report your financial account to the CRA.

March 28, 2018
4:17 pm
John Wayne (Marion)
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stoney said
Effective July 1, 2017, all Canadian financial institutions must maintain a record of the completed Canadian Revenue Agency (CRA) Form “Declaration of Tax Residence for Entities – Part XVIII and Part XIX of the Income Tax Act” for each legal entity client who opens an account. We have enclosed the form for your convenience. We ask that you complete the form (either the enclosed version or the CRA fillable form) and return it to us via one of the following methods: ...

I have never had this request from any of my other banks.
Why do they need this? They already have all the information that the form asks for.  

Is it wise to respond to something like that by an E-mail?? Emails are being spoofed every day!!!

March 28, 2018
4:29 pm
Doug
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That's incorrect to say this form, the FATCA form, is required of all Canadian citizens. As some have pointed out already in this thread, it's usually a matter of the financial institution asking you a few questions to determine whether you have U.S. status for tax purposes, which includes Canada/U.S. dual citizens or U.S. citizens living in Canada, among many other types. If you have no U.S. citizenship, do not hold real property or have significant U.S. wealth, and you don't work in the U.S. (even temporarily), then you should not be affected.

It's sort of like the W-8BEN form. Discount brokerages encourage you to complete and sign it, in case you end up owning U.S. securities, you'll receive the lower 15% withholding tax rate. However, if you have no plans to hold anything remotely closely to U.S. securities, you don't technically have to sign it. If you do end up owning a U.S. security, you'll just pay more withholding tax. 🙂

Cheers,
Doug

March 28, 2018
6:03 pm
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Declaration of Tax Residence for Individuals – Part XVIII and Part XIX of the Income Tax Act

• If you are an individual and you are planning to open a financial account or if you already have a financial account with a Canadian financial institution, it may ask you to fill out this or a similar form.

---------------------------

I was having a chuckle over this thinking about ALL those individuals with accounts at their 20+ financial institutions - ALL of whom have decided that they want you to fill out the form and mail it back to them.

CHEERS!

March 28, 2018
7:46 pm
gicjunkie
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Mary said

Is it wise to respond to something like that by an E-mail?? Emails are being spoofed every day!!!  

It would be wise to phone the institution in order to deal with this issue.

March 29, 2018
9:24 am
Doug
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I note the word may. It's not required for non-U.S. "persons" (i.e., citizens, dual-citizens, residents, workers, major property owners, etc.). I agree that I would challenge this with their Compliance team and suggest they're being overly heavy-handed and administrative and that you want them to code your tax residency based on verbal instructions you provide through an accepted authentication channel (i.e., by phone requiring your TelePIN or online banking "secure message"). 🙂

Cheers,
Doug

March 29, 2018
11:46 am
Loonie
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Doug, why would you consider it less problematic to give the info by telebanking etc? Seems all the same to me.

March 29, 2018
2:54 pm
Doug
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Loonie said
Doug, why would you consider it less problematic to give the info by telebanking etc? Seems all the same to me.  

Well, yes, I take your point, Loonie. Both are problematic and troubling. The latter requires completion of details on a form that aren't specifically required for non-U.S. persons. The bank just needs you to certify, verbally or in writing, of your U.S. tax status (which includes non-U.S. residents but those that hold dual Canada/U.S. citizenship). 🙂

Cheers,
Doug

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