Virginia Hillis, Gwendolyn Deegan sue Ottawa over new FATCA tax rules

For those who follow implementation of the US FATCA, this Canadian court case will be of interest. My understanding from those who follow FATCA closely, the deal Canada struck with the US is more protective of Canadian rights than that signed with other countries (see The Franco-American Flophouse for regular updates):

The women are American-born dual citizens of Canada and the U.S who left the states in childhood and have lived in Canada for decades. They argue the recently enacted Foreign Account Tax Compliance Act violates their rights as Canadians under the Charter Of Rights And Freedoms.

Windsor, Ont., resident Virginia Hillis, 68, and Torontonian Gwendolyn Louise Deegan, 52, stepped up as the figureheads of a fight that has hundreds of thousands of Canadian residents fuming.

Both women were born in the U.S. but have never worked south of the border, and as such have never paid or filed U.S. taxes. Indeed, neither has ever had or used a U.S. passport.

“Gwen … has travelled to the United States in the past and has been questioned by a border officer as to why she, a person with a United States birthplace, does not have a United States passport to travel into and out of the United States, to which she always replies: Because I am a Canadian,” the pairs statement of claim reads.

Nonetheless, under the agreement that Ottawa agreed to comply with in February, Canadian banks are now obliged to hand over names and account numbers to the IRS of any clients that Uncle Sam suspects are U.S citizens.

Virginia Hillis, Gwendolyn Deegan sue Ottawa over new FATCA tax rules – Business – CBC News.