Income Tax Act (R.S.C., 1985, c. 1 (5th Supp.))

Marginal note:Due diligence – new individual accounts

• 274 (1) Upon opening a new individual account, the reporting financial institution must obtain a self-certification (which may be a part of the account opening documentation) that allows the reporting financial institution to

  • (a) determine the account holder’s residence for tax purposes; and

  • (b) confirm the reasonableness of the self-certification taking into account information obtained by the reporting financial institution in connection with the opening of the account, including any documentation collected in accordance with the AML/KYC procedures.

• Marginal note:Determination of reportable account

  (2) If the self-certification for a new individual account establishes that the account holder is resident for tax purposes in a reportable jurisdiction, then

  • (a) the reporting financial institution must treat the account as a reportable account; and

  • (b) the self-certification must also include the account holder’s TIN with respect to the reportable jurisdiction (subject to subsection 271(4)) and the account holder’s date of birth.

• Marginal note:Requirement to obtain new self-certification

  (3) If there is a change in circumstances with respect to a new individual account that causes the reporting financial institution to know, or have reason to know, that the original self-certification is incorrect or unreliable, then the reporting financial institution

  • (a) cannot rely on the original self-certification; and

  • (b) must obtain a valid self-certification that establishes the residence for tax purposes of the account holder.