Ask your questions about FATCA.
This discussion has been continued here: FATCA Discussion Thread (Ask your questions) Part Two
Ask your questions about FATCA.
This discussion has been continued here: FATCA Discussion Thread (Ask your questions) Part Two
So You Think You’ll Just Up And Leave, Eh?
It’s all fine and well to argue against FATCA, but that misses the point. The real question is much simpler: What leads you to believe that you will find freedom — whether financial or otherwise — in a nation and/or institution that voluntarily disrespects your financial privacy?
Which Americans would like to move abroad?
http://www.businessinsider.com/more-americans-moving-abroad-america-wave-2011-11?op=1
U.S. and Denmark Agree on Bilateral FATCA Pact
Had time for a quick comment on this before I head to the airport this morning.
I posted this on another thread but perhaps here is a better place to put it.
The Star Phoenix: “IRS pursues Americans living abroad”
http://www.thestarphoenix.com/business/pursues+Americans+living+abroad/7608929/story.html
It looks like the writer really did his homework on the topic.
@John Brown.
Good to put it on multiple links to get as much visibility. Thanks.
Another EXCELLENT radio interview with ACA, this time with ACA FINANCE DIRECTOR Anne Hornung-Soukup. This lady does not mince words about FATCA:
!
@John Brown;
The author did a good job, except that in the wording he chose, where he erroneously included the other registered savings (ex. RESPs, TFSAs) in with RRSPs as ‘protected’ from US tax with an annual election form.
“ACCOUNTS NOT SHELTERED”
“The situation gets more complicated concerning investment income earned in such Canadian tax-sheltered accounts as TFSAs, RESPs, RRSPs, RRIFs and defined contribution employer pension plans. Income earned in these accounts can only be sheltered from U.S. tax if the American investors include the proper forms with their U.S. income tax returns each year…….”
http://www.thestarphoenix.com/business/pursues+Americans+living+abroad/7608929/story.html#ixzz2DRkbvI7o
That is not currently the case for all the registered savings other than the RRSP and may never be (and even RRSPs were until fairly recently treated punitively as taxable). The other registered accounts must be reported on 3520s and 3520As as ‘foreign trusts’, (as well as on FBARs, and the FATCA form – depending on the reporting threshold that applies), but that does not make them at all exempt from US taxation.
In fact, they are not only subject to US tax, but also the usual potential jeopardy of layered draconian penalties for non-reporting or for even accidental errors or omissions – since they are ‘foreign’ = Canadian and not held in the US. They are not exempted in the Canada-US treaty, and are considered taxable ‘foreign trusts’ by the IRS, just like the RDSP, and the soon to be available PRPP (another beloved creation of our Finance Minister and Federal Conservatives – who actively promotes them to us despite their full knowledge that 1/32 Canadian citizens and residents would be punished by the US IRS and Treasury for saving with them – and should entirely avoid investing in them).
Thanks so much, bubblebustin!!!
What a great verbal explanation to pass on to people. Thank you ACA’s Finance Director, Anne Hornung-Soukup.
Great interview from “Goldstien on Gelt” of ACA’s Finance Director, Anne Hornung-Soukup. The lady is right on target regarding the noose being put around the necks of Americans abroad.
Below is a link to another great interview from “Goldstien on Gelt” — ACA’s Executive Director, Mary Louise Serrato:
I recognize the tone of Anne Hornung-Soukup, it is the tone I walk around with now also. It sure makes me a lot of friends
I will try to post the youtube screen of Anne Hornung-Soukup’s interview. Here goes:
@John Brown,
Success. You did it — spread that great conversation about FATCA and USP’s Abroad, far and wide.
The intergovernmental agreement between the U.S. and Mexico to implement FATCA has been released. It is a reciprocal version of Model 1, or Model 1A. A copy of the Mexican IGA can be found here.
Also hot off the press from MaCleans.ca:
“Banks bracing for U.S. law requiring they inform on dual citizen accounts”
http://www2.macleans.ca/2012/11/28/banks-bracing-for-u-s-law-requiring-they-inform-on-dual-citizen-accounts
From the article:
“Finance Minister Jim Flaherty has said Ottawa is “nearing a conclusion” on the issue, suggesting a similar arrangement as reached by the U.K. is in the offing.”
There are no comments yet.
FATCA Overreach
@John Brown…
What, no music? 🙂
FATCA 2 Clears Up Bank Issues on Tax Reports
FATCA 2 – the tax laws governing how foreign financial institutions should report financial information about US taxpayers with holdings overseas – has been issued by the US Treasury.
The rules mark the second step in the implementation of the Foreign Account Tax Compliance Act (FATCA) and mark another leap forward in tightening the tax net on expats and investors with holdings outside the USA.
@JohnBrown..
My Youtube sound was muted, so no wonder I heard no music! 🙂
@John Brown,
I see CBC picked up the same story as macleans.ca, or is it visa versa?
Canadian banks wary of U.S. tax disclosure law
U.S. law FATCA forces dual citizens to file two returns whether or not they have paid in Canada
http://www.cbc.ca/news/business/story/2012/11/28/banks-us-tax.html
Transcript of a speech by Andrew Quinlan of the Center for Freedom and Prosperity, from the 36th Annual Conference on the Caribbean and Central America:
http://freedomandprosperity.org/2012/testimony-and-speeches/andrew-quinlan-remarks-on-fatca/
His conclusion:
To get through the paywall, I went to google news and searched for “Fatca special report: Thomson Reuters sponsored Q&A. There is also a webinar: costs and consequences of FATCA, Parts 1, 2, 3 and 4, accessible the same way, searched through Google News “webinar costs and consequences of FATCA”. I haven’t listened to all of that, but there might be some who would be interested in doing so. The webinar is from June 2012.
This particular “ad” article deals with institution costs, not our personal costs and consequences.
FATCA: Obama’s New Year surprise against American expats
FATCA has been completely ignored during the 2012 Presidential contest by both Barack Obamaand Mitt Romney. It has the potential of destroying the lives of Americans living overseas, but most Americans and politicians don’t care. In all the drum beating about getting the tax dodgers and the fat cats, FATCA is about to take effect immediately beginning January 2013.
from Badger…
More in the same vein re FATCA and Canada:
http://www.canadianbusiness.com/article/108316–banks-bracing-for-u-s-law-requiring-they-inform-on-dual-citizen-accounts
Still time to add comments here until tonight:
http://www.cbc.ca/news/business/story/2012/11/28/banks-us-tax.html
Lots of good comments along with the stupid ones.
“US ‘behaving like a bully’ over Fatca”
Hasn’t the UK already signed an IGA with the US and its securities and investment industry only starting to wake up to the ramifications of FATCA?
http://www.efinancialnews.com/story/2012-11-21/us-bully-fatca-tax-evasion-rules
@bubblebustin, Hasn’t the UK already signed an IGA with the US and its securities and investment industry only starting to wake up to the ramifications of FATCA?
IGAs protect the industry at the expense of their customers. The UK investment industry probably now feels confident it can publicly criticise FATCA precisely because the IGA for which it lobbied is signed. Much safer to shout from behind barricades than to stand unprotected.
By the way, there’s a registration-free version of the article here.