Cross Border Information Sharing Program: Entry/Exit Initiative

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Cross Border Information Sharing Program: Entry/Exit Initiative

As many of you are aware, the cross-border information sharing program, known as the Entry/Exit Initiative, was scheduled to be expanded to include Canadian and American citizens on June 30, 2014. However, since the necessary legislative and regulatory changes were not implemented in time, the inclusion of Canadian and American travellers was delayed and information sharing remained limited to permanent residents and third-country nationals. On March 10, 2016, Prime Minister Trudeau and President Obama jointly announced that both nations would proceed with the reciprocal exchange of entry and exit records of all cross-border travellers.
On June 15, 2016, the Minister of Public Safety and Emergency Preparedness, the Honourable Ralph Goodale introduced legislation, Bill C-21, An Act to amend the Customs Act, in the House of Commons which will permit Canada Border Services Agency (CBSA) to collect personal information on all individuals who are leaving or have left Canada. Passage of this legislation will allow for the expansion of the Entry/Exit Initiative, which will include the collection and exchange of biographic entry and exit information of all travellers, including Canadian citizens. Once fully implemented, entry into one country will serve as an exit record from the other. It should be noted that information sharing arrangements must be established between CBSA and all partners before any information can be shared.
It is highly recommended that you keep track of the number of days you spend in the United States, understand the Substantial Presence Test and file IRS Form 8840 (Closer Connection), if necessary.  You want to avoid being treated as a U.S. Person for U.S. income tax purposes, otherwise, you will have to comply with all U.S. tax reporting obligations, including the infamous FBAR and its severe penalties for failing to file.
If you have any questions regarding this or any other cross border issue, please contact Michael Kennedy at 519-252-3888 or      


About Ingenuity Counsel & Michael Kennedy

Ingenuity Counsel, based in Windsor, Ontario, Canada, provides cross border tax & United States legal services to Canadians. Michael Kennedy, with 15 years of legal experience, and his team at Ingenuity Counsel Incorporated assist companies and entrepreneurs with immigration, business, real estate and tax matters in the U.S. With his expertise, he is able to walk clients through the process of successfully setting up their business in the United States. Additionally, Ingenuity Counsel advises clients that own property in Florida, Michigan, Arizona & California with respect to income tax, estate planning & administration matters. Michael also handles wills & trusts, powers of attorney and probate administrations. Whether you have real property, financial accounts or business assets located in the United States, Michael and his team can help.

Michael is admitted to practice law in California & Michigan and permitted by the Law Society of Upper Canada to provide U.S. legal services in Ontario as a Foreign Legal Consultant. Prior to establishing Ingenuity Counsel in 2012, he practiced law in the United States for more than 10 years in California, Michigan and Florida.


IRS Circular 230 Disclosure

To ensure compliance with requirements imposed by the U.S. Internal Revenue Service, we inform you that any tax advice contained in this communication (including any attachments) was not intended or written to be used, and cannot be used, by any taxpayer for the purpose of (1) avoiding tax-related penalties under the U.S. Internal Revenue Code or (2) promoting, marketing or recommending to another party any tax-related matters addressed herein.
Legal Disclaimer

The information contained herein is for informational purposes only, and cannot be relied upon as legal advice.  Every person’s needs and situation are different that must be analyzed independently.  After reading this article, if you feel you have, or a client has, U.S. estate or gift tax exposure or any other U.S. tax or legal issue, you should promptly consult with an experienced U.S. lawyer in order to examine the situation. Your reliance upon any information contained in this article will not create an attorney-client relationship with the author.      


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