Sally lives and works in Toronto, but frequently travels to Boston for business. She

decided that she would open a U$.$S$.$ bank account at a Boston bank in the U$.$S$.$ rather

than converting her money to U$.$S$.$ $ each time she traveled. She felt this would

make expenditures more convenient. What should Sally know about her U$.$S$.$

account?

a$)$ The interest income earned in the U$.$S$.$ account is not taxable in Canada.

b$)$ The interest income earned in the account will likely be subject to a flat $30\%$

withholdiing tax by the U$.$S$.$ bank.

c$)$ This interest income will not be reported to CRA as it is earned from a

foreign bank.

d$)$ The interest income is not taxable in the U$.$S$.$ because she is a Canadian

citizen and resident.