Monday, September 19, 2011

Canada Responses to Tax Dispute


The Harper government is pressing the U.S. Internal Revenue Service to back off on its effort to find offshore tax cheats in Canada.

The IRS is going after people who are citizens of both Canada and the U-S, and didn't file a U.S. tax return.

Finance Minister Jim Flaherty says many of those dual citizens are not high rollers with offshore bank accounts -- and Canada is not a tax haven.

The U.S. also proposes to compel Canadian banks to notify the I.R.S. of accounts held by clients with dual citizenship.