Income Tax Act — I-3.3 273
Due diligence for preexisting individual accounts 273 (1) A preexisting individual account that is a cash value insurance contract or an annuity contract is not required to be reviewed, identified or reported, if the reporting financial institution is effectively prevented by law from selling those contracts to residents of a reportable jurisdiction. Lower value accounts (2) The following review procedures apply with respect to lower value accounts that are preexisting individual accounts: (a) if the reporting financial institution has in its records the address of the individual account holder’s current residence (in this section, their current residence address ) based on documentary evidence, the reporting financial institution may treat the individual account holder as being a resident for tax purposes of the jurisdiction in which the address is located for purposes of determining whether the individual account holder is a reportable person; (b) if the reporting financial institution does not rely on a current residence address for the individual account holder based on documentary evidence as described in paragraph (a), the reporting financial institution must review electronically searchable data maintained by the reporting financial institution for any of the following indicia and apply paragraphs (c) to (f): (i) identification of the account holder as a resident of a reportable jurisdiction, (ii) current mailing or residence address (including post office box) in a reportable jurisdiction, (iii) one or more telephone numbers in a reportable jurisdiction and no telephone number in the jurisdiction of the reporting financial institution, (iv) standing instructions (other than with respect to a depository account) to transfer funds to an account maintained in a reportable jurisdiction, (v) currently effective power of attorney or signatory authority granted to a person with an address in a reportable jurisdiction, and (vi) a hold mail instruction or in-care-of address in a reportable jurisdiction if the reporting financial institution does not have any other address on file for the account holder; (c) if none of the indicia listed in paragraph (b) are discovered in the electronic search, then no further review is required until the earlier of (i) a change in circumstances that results in one or more of the indicia referred to in paragraph (b) being associated with the account, and (ii) the account becoming a high value account; (d) if any of the indicia listed in subparagraphs (b)(i) to (v) are discovered in the electronic search or if there is a change in circumstances that results in one or more of the indicia in paragraph (b) being associated with the account, then the reporting financial institution must treat the account holder as a resident for tax purposes of each reportable jurisdiction for which an indicium is identified, unless one of the exceptions in paragraph (f) applies with respect to that account; (e) if a hold mail instruction or in-care-of address in a reportable jurisdiction is discovered in the electronic search and no other address and none of the other indicia listed in subparagraphs (b)(i) to (v) are identified for the account holder, then (i) the reporting financial institution must do one (if the relevant information is obtained) or both (in the order most appropriate to the circumstances) of the following: (A) apply the paper record search described in paragraph (3)(b), and (B) seek to obtain from the account holder a self-certification or documentary evidence to establish the residence for tax purposes of the account holder, and (ii) if the paper record search referred to in clause (i)(A) fails to establish an indicium and the attempt to obtain the self-certification or documentary evidence referred to in clause (i)(B) is not successful, then the reporting financial institution must report the account as an undocumented account; and (f) notwithstanding the discovery of indicia under paragraph (b