Canada’s Federal Court has dismissed a lawsuit brought against the Canadian government for its role in implementing a U.S. law designed to clamp down on tax evasion.
The lawsuit, which was filed by two American expatriates in Vancouver last year, had sought to challenge the Canadian constitutionality of a Canada-U.S. intergovernmental agreement that forces Canadian banks to comply with the U.S. Foreign Account Tax Compliance Act, or FATCA.
That agreement between the two countries requires banks to share account information about U.S. citizens with the U.S. Internal Revenue Service via Canadian tax authorities. In their initial statement of claim, the plaintiffs had alleged that the Canada-U.S. intergovernmental agreement violated certain provisions of the Constitution Act of 1867 and the 1982 Canadian Charter of Rights and Freedoms.
The original article can be found at www.wsj.com