The Canada-United States Enhanced Tax Information Exchange Agreement Implementation Act is an important development in the ongoing efforts of both countries to enhance tax compliance and combat offshore tax evasion. This Act is a result of the Enhanced Tax Information Exchange Agreement (E-1) that was signed between the two countries in February 2014.

The purpose of the E-1 agreement is to promote the exchange of tax information between the two countries in order to identify and prevent offshore tax evasion. The agreement provides for the automatic exchange of tax information on a regular basis, without the need for a specific request from either country.

The Canada-United States Enhanced Tax Information Exchange Agreement Implementation Act was introduced in the Canadian Parliament on June 20, 2016, and received Royal Assent on December 13, 2016. The Act enables the automatic exchange of information between the Canada Revenue Agency (CRA) and the Internal Revenue Service (IRS) in the United States.

Under the Act, financial institutions in Canada are required to report the information of US residents with Canadian accounts to the CRA. This information is then automatically exchanged with the IRS. Similarly, the Act requires US financial institutions to report the information of Canadian residents with US accounts to the IRS, which is then exchanged with the CRA.

The automatic exchange of information is expected to improve tax compliance and reduce the opportunity for offshore tax evasion. It is also expected to improve the efficiency of tax administration, as the CRA and IRS will have access to a broader range of information on taxpayers.

While the Act has been hailed as a positive development for taxpayers and tax authorities alike, it has also been criticized by some who see it as an infringement of privacy and a violation of personal freedoms. However, proponents of the Act argue that the benefits of enhanced tax compliance and reduced tax evasion far outweigh any concerns about privacy.

In conclusion, the Canada-United States Enhanced Tax Information Exchange Agreement Implementation Act is an important development in the ongoing efforts of both countries to enhance tax compliance and combat offshore tax evasion. While it has been the subject of some controversy, the Act is widely regarded as a positive step towards improving tax administration and ensuring that taxpayers meet their obligations. As a professional, it is important to stay abreast of developments such as this Act and ensure that any related content is accurate, informative, and optimized for search engines.