Canada has enacted legislation which has been incorporated into the Income Tax Act (Canada) which is intended to reduce tax evasion and improve tax compliance around the world.
Effective July 1, 2014, Canadian financial institutions were required to begin collecting information to report to the Canada Revenue Agency (CRA) on certain financial accounts held in Canada by U.S. persons as defined under U.S. tax legislation known as FATCA (Foreign Account Tax Compliance Act).
Effective July 1, 2017, Canadian financial institutions were also required to begin providing information to the CRA regarding certain financial accounts held in Canada by persons whose tax residence is outside of Canada and the U.S. under rules known as CRS (Common Reporting Standards).
Insurance and annuity contracts that are reportable to the CRA include non-registered life insurance policies with cash value and annuity contracts (including segregated fund contracts) held by individuals or entities resident for tax purposes in countries other than Canada or entities with primarily investment income controlled by persons who are tax resident in a country other than Canada.
As a customer of Empire Life, we will ask you about your tax residency status when you invest with us or buy policies with cash value. Empire Life cannot advise you as to your residency for tax purposes.
Depending on your answer to the question on our application or forms, we may be required to report information about your contract(s) to the Canada Revenue Agency each year.
To learn more about FATCA and CRS or your obligations, please type either of the acronym/terms into the Canada Revenue Agency website search bar.
This document should not be construed as providing tax, legal or financial advice.
For more information about FATCA, see these websites: