Times are changing.
US banker proud to become Chinese national: “I am very proud to say I have become Chinese,” says Marshall Nicholson, a veteran American investment banker in Hong Kong
The rise of China has not only transformed the global landscape of the financial industry, but it has also changed an American banker’s nationality.
Some in Hong Kong’s financial community were surprised by an e-mail from one of the most veteran investment bankers in the city on Tuesday night. Marshall Nicholson, a managing director in charge of investment banking in Hong Kong for China International Capital Corporation (CICC) told his colleagues and friends that he had officially renounced his United States citizenship and would soon receive a HKSAR passport.
“I am very proud to say I have become Chinese,” said Nicholson in the e-mail, which was seen by the South China Morning Post and spread quickly in the local banking world on Tuesday night.
The article says:
“In the e-mail to his friends and colleagues, Nicholson said he went to the US Consulate General in Hong Kong to give up his American passport because he wanted to “make my situation reflect my personal and professional view of my long-term interests”.”
As the following comment, his “long term interests” are NOT to become a Chinese National but to get rid of his U.S. citizenship. Here is the comment:
“honkiepanky
Apr 17th 2013
6:06pm
This serves as a reminder that in at least one aspect of human rights, China is ahead of the U.S. — China does not treat its citizens as property in the same way the U.S. does, levying taxes even on those who choose to live outside of the country.
Reply
Like (4)
Dislike (1)
Report
jayb
Apr 18th 2013
2:12am
mega ditto! incidentally, if you live 10 yrs in CA and move to TX (no state income tax), CA will not come after you for CA income tax. however, if you move to hong kong and doesn’t earn a penny in US, US comes after you for income tax. this is Obama/Democrats “pay your fair share”.”
Oops, I’m too slow, you beat me to posting this! Anyway, here’s links to some articles about his renunciation for those who want to read more or leave comments (last link in Chinese)
http://blogs.wsj.com/chinarealtime/2013/04/17/american-banker-becomes-chinese-citizen/
http://www.scmp.com/business/banking-finance/article/1216594/american-banker-now-proud-be-chinese-national
http://orientaldaily.on.cc/cnt/finance/20130417/00271_001.html
For those who are keeping track, Nicholson’s the seventh public figure I’ve heard of giving up citizenship this year, but the only one to be mentioned in the WSJ. (The previous six are newly-elected Israeli Knesset members Naftali Bennett and Dov Lipman, Hamid Karzai’s younger brother Mahmud Karzai, Pakistani politician Fauzia Kasuri, Hong Kong Commerce & Economic Development Bureau political assistant Bernard Chan Pak-li, and Caymanian independent politican candidate Sharon Roulstone.)
US media have to keep skewing their reporting on the issue to make it seem like only “ultra wealthy tax dodgers” renounce citizenship; they don’t want the public getting the idea that it is also a refuge for ordinary folks who are fully integrated members of other societies and who are sick of being members of the US form & penalty club.
Also, I’m guessing Nicholson has political (at least office politics), non-tax reasons for doing this: like the article you quoted goes on to mention, his boss at CICC is Chinese ex-Premier Zhu Rongji’s son
New Hampshire License Plate: “Live Free or Die”
US Citizen Abroad Motto: “Renounce US Citizenship or Die”
There are actually a good number of others who have given up their citizenships for that of China and not just the HKSAR variant. They just tend to fly under the radar and not make a big deal of it with press releases and whatnot. And China doesn’t go around blabbing those stats publically either.
I wonder if the US will give him a visa to visit the US to visit family and/or attends meetings? That would be my worry.
US citizenship, as well as other first-world citizenship, can remain attractive for citizens from lower-income countries or countries with political instability. The German-language “Der Spiegel” reports that Darja Schukowa, the girlfriend of the Russian oligarch, Roman Abramovich, gave birth to a daughter in New York in early April, which is thought to have been planned. Here’s an excerpt from the article (translated):
“According to US media, the billionaire arrived in Manhatten in February with his yacht “Eclipse”, where he wanted to spend time with his girlfriend until the birth. Schukowa and Abramovich became acquainted in New York in 2006 at a New Year’s party. Presumably not only romantic memories played a role in the selection of the birth location: the fact that children born in the USA have a right to US citizenship is thought to have played a role in the decision to give birth there.”
Abramovich could be looking into the future when Putin is no longer in office and he may fall into disfavor, like many of Yeltsin’s oligarchs have. An anchor baby in the US could be his ticket to safety if Abramovich’s situation becomes difficult. On the other hand, perhaps he’s got his eyes on a New York sports team and wants to live nearby.
http://www.spiegel.de/panorama/leute/milliardaer-roman-abramowitsch-zum-siebten-mal-vater-a-894498.html
Today’s Swiss Tages-Anzeiger has an article about the mayor of Zurich renouncing her US citizenship. She was born in Iowa City, Iowa and her relationship to the US was limited to her earliest years, according to the article. She stated she has been paying US taxes amounting to approx. 1/2 of her annual Swiss income taxes, which, she said, was “not nothing”.
As a political person, we might wish to see whether her name appears in the Federal Register. Article in German:
http://www.tagesanzeiger.ch/zuerich/Corine-Mauch-hat-den-USPass-zurueckgegeben/story/27073559
Google Translation: http://translate.google.ca/translate?sl=auto&tl=en&js=n&prev=_t&hl=en&ie=UTF-8&eotf=1&u=http%3A%2F%2Fwww.tagesanzeiger.ch%2Fzuerich%2FCorine-Mauch-hat-den-USPass-zurueckgegeben%2Fstory%2F27073559
@Innocente, a Swiss government employee, paid for by the Swiss taxpayer, is sending Swiss tax money to the US tax authorities? Not good.
@SwissPinoy:
It appears that the mayor of Zurich, Corine Mauch, is an accidental American, born in the US while her father was an engineering student apparently at the University of Iowa in Iowa City:
http://www.bilanz.ch/machtnetz/corinne-mauch-usa-steuerpflichtig
In the Tages-Anzeiger article, she mentioned that she spent her “earliest” days in the US before returning to Switzerland. Based on the fact that her mother was elected to parliament in 1979, when Corine Mauch would have been 19, I expect that the family was back in Switzerland at least several years before that, if not already a decade or more.
As mayor of Zurich, she earns approx. CHF 250’000 per year. Using an on-line income tax calculator for Zurich, Ct. Zurich, and some reasonable reasons about deductions for pension and Swiss IRA, she would owe a minimum of CHF 51’400 in Swiss Federal, cantonal and community income taxes. (Other assumptions: single, no children, no church affiliation). According to the Tages-Anzeiger article, she has been paying US income taxes additionally at around 50% of her Swiss income taxes or, say, CHF 25’700 ($27,600) per year in US Federal income taxes.
Mayor Mauch probably has not earned any money in her lifetime in the US and may not have used any US services supported by the Federal income tax for 40 or more years, if she ever did. Without even considering the difficulties in maintaining banking relationships in Switzerland as a US citizen, I can see why she lost interest in retaining her US citizenship.
Bloomberg and Geneva Lunch are carrying articles on the Mayor of Zurich, Corine Mauch, renouncing her US citizenship (in English):
http://www.bloomberg.com/news/2013-04-18/zurich-mayor-renounces-u-s-citizenship-amid-tighter-tax-rules.html
http://genevalunch.com/2013/04/18/zurich-mayor-sheds-us-passport/
According to an October 2012 article in the Liberian newspaper “In Profile Daily”, the President of Liberia, Ellen Johnson Sirleaf, is a US citizen (10th name on list):
“My research shows the below as Liberians with American citizenship working in Government and holding Liberian passport and US Passport:
Mary Broh
Robert Sirleaf
Amara Konneh
Biyan Kessely
Martu Tubman
Richard Tolbert
Winsley Nanka
Federick Norkeh
Jeneh Bernard
Ellen Johnson Sirleaf
Jeremiah Suluteh (Canadian)
Francis Carbah (Canadian)
Alobenke Akere
Estrada Bernard
Carnie Johnson
Stephen Yekeson
Patrick Sandolo
Sam Russ (he confessed it and was still confirmed by the sanate as deputy minister)
Dr. Chris Toe
Lusinee Donzo (he confessed and was still confirmed by the senate as minister)
GSA Director Perin
Atmonia Tarpeh
Miatta Beysolow
Florence Chenowah
Miltda Wookie Parker
Julia Dunkin Cassell, among others.”
http://www.inprofiledaily.com/index.php?option=com_content&id=8061:dual-citizenship-who-points-fingers&Itemid=56
Assuming the list of dual US-Liberian citizens working in the Liberian government is accurate, below is a list of their positions:
1) Mary Broh, Mayor of Monrovia, Liberia
2) Robert Sirleaf
Senior Advisor to Liberian President
Board Chair of National Oil Company (Liberia)
(Son of Ellen Johnson Sirleaf, President of Liberia)
3) Amara Konneh, Minister of Planning & Economic Affairs
4) Biyan Kessely, Maritime Commissioner
5) Martu Tubman, Deputy MD, Liberia Petroleum Refining Company
6) Richard Tolbert, Chairman, Liberian National Investment Commission
7) Winsley Nanka, Acting Auditor General of Liberia
8) Federick Norkeh, Deputy for Commerce and Industry
9) Jeneh Bernard
„Jennie Bernard, sister of President Sirleaf- known to be a key behind-the-scene advisor to the President“
10) Ellen Johnson Sirleaf, President of Liberia
11) Alobenke Akere, position unknown
12) Estrada Bernard
Legal Advisor to the President
Chairman, International Bank (Liberia)
(Brother-in-law of Ellen Johnson Sirleaf, President of Liberia)
13) Stephen Yekeson, Deputy Public Minister for Administration
14) Patrick Sandolo, Lands, Mines and Energy Minister
15) Sam Russ, Deputy Minister for Operations, Ministry of Lands, Mines and Energy
16) Dr. Chris Toe, Agriculture Minister
17) Lusinee Donzo, Public Works Minister
18) Atmonia Tarpeh, Minister of Education
19) Miatta Beysolow, Minister of Commerce & Industry
20) Florence Chenowah, Liberian Minister of Agriculture
21) Miltda Wookie Parker, MD, National Port Authority
22) Julia Dunkin Cassell, Liberian Minister of Gender and Development
Note: There are two “Agriculture Ministers” listed, Toe and Chenowah.
For their sake, let’s hope that these overseas Americans have been properly filing US tax returns and FBARs.
Robert Sirleaf is the son of the Liberian President, Ellen Johnson Sirleaf. He spent 24 years on Wall Street and is currently working as a Senior Advisor to his mother. He also serves as the Chairman of the Liberian National Oil Company. Critics have complained that he is working “pro bono” for the oil company so that he does not have to pay US taxes. Here’s an excerpt from a 2012 newspaper article:
“Addressing a press conference Friday on behalf of House members Friday at the Capitol Building, Rep. James Biney charged that President Sirleaf’s assertion that her son, Mr. Robert Sirleaf, is working here pro-bono is intended to prevent him from paying taxes in the United States of America where lawmakers believe he also holds citizenship.
“We have heard the President talk about Mr. Robert Sirleaf is working pro-bono because of his love for his country and we do not challenge that. That statement, which the President made, was not intended for Liberians. It was intended for the Americans so that they know he is not working for money so that he doesn’t pay taxes there.
“And so, for the benefit of us Liberians, the President needs to come out and say if we pay this man, he is not going to pay taxes in America?” Rep. Barney said.”
http://newdemocratnews.com/index.php/component/content/article/44-the-executive/1208-reps-claim-robert-sirleaf-is-a-us-citizen
Liberia is a poor African country with an average per capita annual income of $436 (IMF). Liberia’s citizens pay taxes to support its government. Its governmental officials and employees would then normally pay Liberian income and other taxes from their salaries. Its numerous dual Liberian-US citizen officials would also pay income taxes to the US.
As a thought, it would seem that the “Tax Justice Network” (TJN) would oppose citizenship-based taxation by the US due to its removal of wealth from poor countries such as Liberia. I wonder what TJN’s position is on this.
Liberia’s citizens pay taxes to support its government.
@Innocente, I know what you meant, but let’s be precise: it’s not Liberian citizens who pay taxes to Liberia, it’s Liberian residents (and nonresidents who earn income from Liberia). It’s perhaps the repeated simplified statement that “citizens pay taxes to their country” that made citizenship-based taxation survive for so long.
@Shadow Raider: Thanks for the feedback. I would like to excuse myself with “muddled thinking” but think it was more “brain obviously not engaged” when I wrote citizen instead of resident.