Tax-Free Savings Accounts (TFSAs) are a cornerstone of Canada’s savings system, allowing Canadians to invest without Canadian tax on income and capital gains earned in the account;

Roughly one million U.S. citizens are estimated to live in Canada, including many Canada–U.S. dual citizens and Canadians whose U.S. citizenship exists solely because of birth or parentage;

Because the United States taxes its citizens on worldwide income, these Canadians may face U.S. taxation, reporting obligations and professional compliance costs on TFSAs that other Canadians do not;

This creates an inequity: two Canadians can live in the same community, earn and pay taxes in Canada, and contribute identical amounts to the same Canadian savings program, yet one receives the full tax-free benefit while the other may face foreign taxation solely because of U.S. citizenship;

The Canada–United States Tax Treaty already provides cross-border recognition for certain retirement arrangements, including RRSPs, RRIFs, IRAs, Roth IRAs and qualifying employer plans, but TFSAs receive no comparable recognition;

Many affected Canadians are unaware of these consequences until after contributing to a TFSA;

We, the undersigned, call upon the Government of Canada to:

1. Pursue negotiations with the United States to secure appropriate U.S. tax recognition of Canadian TFSAs;
2. Make TFSA recognition a priority in future Canada–U.S. tax discussions; and
3. Improve public information for Canadians with U.S. citizenship regarding TFSA tax and reporting consequences.