Money in the bank: Ottawa looks for new ways to tax dormant accounts
Canada’s Department of Finance is looking at reforms to reduce or eliminate interest paid on unclaimed dormant bank accounts and terminated pension plans. It is estimated that it amounts to $742 million as of Dec. 31, 2017. It is proposing that balances that stand stagnant in bank accounts, and balances with less than $100 will be held for a shorter period time than the current 30 year waiting period. They also want to expand it to unclaimed pensions and possibly add dormant accounts in U.S. dollars and other foreign currencies.
“The Bank of Canada holds at least $742 million in unclaimed balances that Canadians apparently have forgotten they own. The federal government wants to revamp and expand the system to include some unclaimed pensions.”