Check out Wayne Bewick on 18 April 2012 as he trolls for business and purveys misinformation via a Globe and Mail video.
Video: Tax tips for Americans living in Canada
Bewick says that FBAR reporting to the United States is all about the compliance —
if you have an aggregate of more than $10,000 in
accounts outside of Canada.
Outside of Canada? Really? Most Brockers already know better than that. They also know that far too many “professionals” need to be scrutinized with a steely eye and great distrust. The IRS is not the only shark in the waters.
Also notice how host Rob Carrick has let the same character “inform” his audience just a few days earlier.
My comment at Globe:
We have at the http://isaacbrocksociety.com a lot of very useful information for Americans and “accidental Americans” living in Canada.
What the video fails to say in 1 minute 33 seconds is that the Canadian government will not collect FBAR fines from anyone ever; nor will the CRA collect taxes from Canadian citizens or Canadian/US dual citizens. Thus, the best protection that a person a living in Canada can have is Canadian citizenship. Then, if all your income and accounts are in the Canada, you have essentially nothing to fear.
My major problem with the media today is that most outlets are not saying why this extra-territorial taxation of the US is an over-reach on the part of the United States and why it is discriminatory and unfair. Take FBAR: it is a violation of American rights: Fourth Amendment, Fifth Amendment, and Eighth Amendment, to begin with. Furthermore, this particular video fails to mention the exceptions: US citizens in Canada will owe taxes if they sell their primary dwelling and make over 250K in cap gains, they owe taxes on gains in TFSA (because they are tax free in Canada and not in the US; they have special reporting requirements for their RRSP, lest the US decides they should pay taxes and FBAR fines on those too.
Also, we have information at http://isaacbrocksociety.com about how to renounce your citizenship. I was interviewed for Atossa Abrahamian’s Reuters Article (see http://www.reuters.com/article/2012/04/16/us-usa-citizen-renounce-idUSBRE83F0UF20120416 ). She managed to get the narrative right. The IRS is wrecking the lives of Americans abroad. Why can’t the Globe and Mail get the right narrative? This bothers me a lot.
@Petros – good catch! I also posted a comment,
Such a short message, yet providing such dangerous misinformation for Canadians. In the future, please make sure of the facts. There is already enough misleading info, hyperbole and IRS propaganda out there, and I expect better from the Globe and Mail. One of the first things that should have been said is that each person should check first on whether they really are US citizens/persons or not. See the Isaac Brock Society – http://www.isaacbrocksociety.com. And, reiterating P.W. Dunn’s comment, it is very important that Canadians know that the Dept of Finance has publicly stated that they will not collect taxes owed to other countries, if that debt was incurred while the person was a Canadian citizen. Nor will they collect any kind of reporting penalties on behalf of other countries.
Good catch guys and good feedback right away
@All
Very good catch- all of you. Great to see!