Canadian government faces constitutional challenge over FATCA deal

FATCA:  Foreign Account Tax Compliance Act

"Two women are suing the Canadian government over a controversial deal in which Canada has agreed to share the tax information of U.S. persons resident in Canada with the IRS.

Under the Canada-U.S. agreement, which was reached in February and which took effect on July 1, the Canada Revenue Agency is to provide tax information to the U.S. Internal Revenue Service about the estimated one million Americans and dual U.S.-Canadian citizens who reside in Canada. Canadian financial institutions are required to search their records for accounts held by clients who meet the definition of “U.S. person” under the law, then supply this information to the CRA so it can pass it to the IRS."