Mr. Speaker, under the agreement, financial institutions in Canada will not report any information directly to the IRS. Relevant information on U.S. residents and U.S. citizens will be reported to CRA.
The exchange of tax information between Canada and the U.S. is already a long-standing practice and is authorized under the Canada-U.S. tax treaty, which includes safeguards for the use of exchanged information.
The information on U.S. account holders obtained by the CRA will be exchanged with the IRS through the existing framework, an approach that is consistent with Canadian privacy laws.