7.33 The Agreement exists in connection with the conclusion of similar agreements with other jurisdictions in the United States. There is therefore an interest in promoting uniform applications in all legal systems. However, legal systems transpose these agreements separately into their own national law, which may lead to differences in national implementation. It is therefore necessary to refer to the law of the court of enforcement in a cross-border context. For example, the question may arise as to whether a particular corporation that resides in a particular partner jurisdiction and has a financial account with a Canadian financial institution meets the definition of a “financial institution”. In such a case, the classification of the entity should be governed by the law of the partner jurisdiction in which the entity is located, and a Canadian financial institution should not consider self-certification to be unreliable or incorrect simply because a non-resident entity declares a different status than would be the case if it were determined under Part XVIII. 5.12 If there is a written agreement between a Trader and a Fund that governs matters relating to Part XVIII, it will be sufficient for the Trader to inform the Fund that the Trader will only provide the Fund with the account status of the US accounts to be reported. IRC §1441 et seq. regulates the withholding of income tax on U.S.
source income payments to a non-U.S. person. No one.  In general, the United States. The payer must verify the tax identification number (TIN) of its beneficiaries and withhold 30% of this payment if no TIN is presented.  A qualified intermediary (QI) § 1441 is usually a foreign bank or other foreign financial institution that signs an agreement with the Internal Revenue Service (IRS).  Under the agreement, THE QI maintains its own records of the U.S. or foreign status of beneficial owners of payments and may assume responsibility for tax reporting and withholding tax.  The QI agreement is valid for 6 years and QI is regularly subject to an IRS or external audit to confirm compliance with the terms of the agreement.  The IQ regime under section 1441 was then supplemented by reporting requirements for foreign accounts under the Foreign Account Tax Compliance Act.
6.43 If an entity is a financial institution simply because it is an investment company, all interest on equity or debt (with the exception of shares duly traded on an established securities market) in the corporation constitutes a financial account. This follows from the definition of `financial account` in Article 1(1)(s) of the Agreement. For the purposes of this definition, a holding in a financial institution is not considered to be “properly traded” and is considered a financial account if the holder of the holding (with the exception of a financial institution acting as an intermediary) is recorded in the books of the financial institution. However, that treatment shall apply only to shares first entered in the books of such a financial institution after 30 June 2014 and it is not necessary for such interest to be declared by the 2016 reporting year at the latest. 6.8 If a financial account is issued by an intermediary other than a financial institution (e.B. of a law firm) that is not described in paragraph 6.6, but that maintains an account that holds, on a pooled basis, the funds of the underlying clients of the intermediary, unless: 6.7 Annex II has been amended by an agreement agreed to by the competent authorities of Canada and the United States. Annex II to the Agreement shall be published. 5.11 In the absence of a written agreement between a Trader and a Fund and the Trader has not provided a classification as to whether an Account is reportable for a unit of the Fund Client`s Name held by the Trader that the Trader maintains, the Fund will inform the Trader in writing that the Account is not documented at the end of the year.
(A copy of the notice should be kept as a record prepared by the Fonds for the purpose of complying with Part XVIII, as required by subsection 267(1) of the ITA.) This gives the trader (usually the person with the most direct relationship with the underlying investor) the opportunity to obtain the necessary information from the account holder and provide the classification of the United States…