PayPal Canada Must Disclose Business Information to the CRA

Few years back I had helped couple of my financial clients (mostly banks) in building their workflow surrounding the much talked about FATCA. As you know, any person having a US presence must report their financial whereabouts to the US authority. So, the banks were obligated too, to report to the authority about their clients following the FATCA regulations.

But, for Canada, it was a little different, I heard. The institutions first report to CRA, and then CRA reports to US IRS.

It never crossed my mind that Paypal Canada was not reporting to CRA on their Canadian business activities! Nothing to do with US regulations! A financial entity doing business in Canada would not report to the Canadian authority? How come!

Anyways, it looks though that there has been a battle going on in the court and the Canadian government has finally won.

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Niaz Abbas