Liberty and justice for all United States persons abroad

The Isaac Brock Society

90 thoughts on “The best #FATCA video yet… American Empire and the Most Important Law You’ve Never Heard of…”

  1. @Mike: Have you received my messages? Aboriginal People’s Television Network wants to talk to you. They responded to me within minutes of me sending them the Open Letter to Minister Flaherty.

    They were the only media who responded–except for Ottawa citizen who said they will “pass on this one.”

  2. @Blaze

    I’ve been trying for many months to get Business in Vancouver to cover FATCA and they keep saying “next week” or “soon”. I even sent the the Don Whiteley article in BC Business so they would know that their competitor is covering it. My latest request (yesterday) was a little more pointed:

    “At a certain point, Canadians are going to feel that the lack of coverage of FATCA has left them feeling ambushed. CBC rings the alarm. Why won’t you?”

    The from the editor was: “BIV is still planning to do a FATCA story, but not this week.”

    Another brush off. What are these people waiting for? Word from their corporate (bank) masters?

  3. @Mike,
    I had wondered about FATCA and the associated sovereignty issues; both from a First Nations perspective, and from the perspective of Quebec. Taxation is a very important area of sovereignty.

  5. Blaze, I just called the Native People’s Television Network and am contemplating an interview…. will keep you all posted. This needs to hit hard fast….

  6. That’s great that you are in contact with Native People’s Television Network, Mike. Blaze is Lynne and she has the address that you you have signed into Isaac Brock with — she has sent you two emails there and gave that email address to APTN. Presume Native People’s Television Network and Aboriginal People’s Television Network are one in the same?

  7. @ALL
    A snowbird came knocking on my door just now…He and his wife are heading to Florida 2 days. I gave him the FATCA Fact Sheet…the red and white one warning Americans are invading Canada….
    First reaction. “I am not an American Person”.
    I don’t have property in USA or Bank Account.
    I explained the 180 days US restriction. He said that it is not right.
    Told him to tell his MP…He said he wouldn’t. He is around 70 so this is so absurd to him that he can’t understand it is effecting him. He didn’t stay long enough to explain how the expense will be passed down.

    I think we need a Snowbird FATCA fact sheet. It is the right time.
    Could even pay for an ad in the big newspapers . It is time for snowbirds going south, especially the ones who go for a few months.. .

    Just what would the USA do to snow birds who stay over 180 day period….is it 2 years or 3 years?

    He took the paper and I am sure he is going to show it to other Canadian snowbirds down there.

    I would like it if someone can explain the snow bird restriction for me.

  10. @nothernstar

    So you friend thought he could stay 180 or 183 days PER year without having to do anything else?

  13. Blaze, you should have my email address shortly, I wonder if my Iaasc Brock one was typed in incorrectly…..

  14. northernstar,

    Information for your snowbird friends. Ontario requirements are ONLY 1/2 of the complex equation:

    What they need to know about IRS requirements: http://www.irs.gov/uac/Form-8840,-Closer-Connection-Exception-Statement-for-Aliens

    Form 8840, Closer Connection Exception Statement for Aliens

    Use Form 8840 to claim the closer connection to a foreign country(ies) exception to the substantial presence test. The exception is described below and in Regulations section 301.7701(b)-2.

    Note: You are not eligible for the closer connection exception if any of the following apply.

    You were present in the United States 183 days or more during the calendar year.
    You are a lawful permanent resident of the United States (that is, you are a green card holder).
    You have applied for, or taken other affirmative steps to apply for, a green card; or have an application pending to change your status to that of a lawful permanent resident of the United States.

    Even if you are not eligible for the closer connection exception, you may qualify for nonresident status by reason of a treaty. See the instructions for more details.

    http://www.moodysgartner.com/beware-of-the-us-snowbird-visa-tax-bomb/

    Day count for US income tax

    The US taxes three classes of individuals on their worldwide income: US citizens, US green card holders, and “US Residents.” Individuals are “resident” in the US based on two relatively straightforward tests.

    The first test is the easiest to understand and administer: if an individual is physically present in the US for more than 182 days in the calendar year that person is a resident and therefore subject to US income tax and foreign reporting obligations on worldwide income. It is worth noting that such individual, as a Canadian resident, would also be obligated to file Canadian tax returns and report worldwide income.

    For those who are present in the US for more than 182 days in the calendar year the Canada-US Treaty does afford a tiny bit of relief. If the individual can establish that their center of vital interests is in Canada the Treaty will override the 182 day rule and deem him resident of Canada and therefore not subject to tax on worldwide income. However, such individual must still file a US tax return to claim the relief afforded under the Treaty.

    However, this is only a pyrrhic victory for the taxpayer because the Treaty relieves the individual only from US tax on worldwide income. The Treaty does not relieve the individual from either the obligation to file all requisite US forms (including the dreaded FBAR) or the obligation to pay potentially ruinous penalties for the failure to file these forms.

    The second test is called the “Substantial Presence Test.” It is somewhat more involved and requires applying a mathematical formula to the days present in the US. The formula works like this:

    Start with the number of days present in the US during the current year and, if greater than 30, add 100% of these days and continue to step 2;
    Add 1/3 of the number of days present in the US during the prior year;
    Add 1/6 of the number of days present in the US two years prior.

    If the individual spends more than 30 days in the US in the current year, and the sum of those three figures is greater than 182 then the individual is resident in the US for US income tax purposes and therefore subject to tax on worldwide income. If the sum is less than 182 or less, then the individual is not resident for US income tax purposes.

    However, this second test (“Substantial Presence Test”) has an important exception. If the individual has a closer connection to Canada and files the US form 8840 with the IRS on or before April 15 (June 15 if he is outside of the US on that date) then he will be deemed to be not resident in the US and therefore exempt from US tax on worldwide income and all US filing obligations.
    US estate tax

    The US also imposes an estate tax on the value of certain individuals’ worldwide assets owned at death. The individuals subject to the estate tax on worldwide assets are those who are either US citizens or “US Residents.” If the individual is neither a US citizen nor a US resident, only the property that situated in the US will be subject to the US estate tax.

    Those who expect consistency and logic in tax law will be disappointed (though probably not surprised) to learn that the test to determine residency for the US estate tax is different than the test to determine residency for US income tax purposes. For estate tax purposes an individual is resident if he: a) lives in the US, even for a brief time; and b) has no definite present (or later) intention to move. The test applied by examining all of the surrounding facts and circumstances.

    This fact and intent based test is challenging to apply because facts are messy and change with time. Thus, an individual may not be resident for estate tax purposes in one year but several years later that conclusion may change.

    “…There’s an extraordinarily punitive rule, which says that you have to file IRS Form 8840 to claim closer connection. Otherwise, unless you meet a very stringent exception, you lose the ability to claim you’ve got a closer connection to Canada. Be careful with this one. See quoted language below.

    “Requirement to File Form 8840

    If you do not timely file Form 8840, Closer Connection Exception Statement for Aliens (PDF), you cannot claim a closer connection to a foreign country or countries. This does not apply if you can show by clear and convincing evidence that you took reasonable actions to become aware of the filing requirements and significant steps to comply with those requirements.”

    It would behoove EVERY Canadian snowbird to know how to avoid being issued a ‘US Person’ indicia by the US when our Canadian banks become arms of the IRS with FATCA (Foreign Account Tax Compliance Act) and how this plus the US Citizenship-Based Taxation can affect you. (All countries of the world, except for the US and Eritrea practice Residence-Based Taxation, a big difference — and there will be no REAL reciprocity for other countries.) Find out about the Canadian government negotiations taking place with US Treasury which the US wants signed to have waived the rights granted Canadian Charter of Rights and Freedoms. It is actually NOW illegal for a Canadian bank to ask a client or perspective client where they were born. What if they asked this of every Asian person, every East Indian person; every whatever? Do not sign away your own rights. Do not turn over Canadian sovereignty to the US and make Canadian citizens two-tiered — those who have US indicia (to be second-class Canadians) and all other Canadians, no matter where they were born.

    You should also make sure you know how a longer stay in the US will affect your provincial Canadian healthcare.

    BUYER BEWARE!!

    Also, Phil Hodgen: http://hodgen.com/the-substantial-presence-test-explained/

    One last source: http://www.snowbirds.org/tax-forms

    8840 – Closer Connection Exemption Statement for Aliens

    Canadian residents who winter in the U.S. are technically subject to U.S. income tax if they exceed a specific number of days (based on a calculation on the form 8840) in the U.S. in any one year.

    To avoid U.S. taxation, IRS form 8840 (Closer Connection Exemption Statement for Aliens) needs to be filed annually with the U.S. Internal Revenue Service.

    The form, in essence, acknowledges that you met or exceeded the “substantial presence test” BUT are not going to be filing a U.S. income tax return due to the fact that you maintain “a closer connection” to a foreign country, such as Canada, where you will be paying annual income tax.

    You will be considered to have a “closer connection” with a country other than the U.S. based on the location of:

    Your permanent home.
    Your family.
    Your personal belongings, such as cars, furniture, clothing, and jewellery.
    Your current social, political, cultural, or religious affiliations.
    Your business activities (other than those that constitute your tax home).
    The jurisdiction in which you hold a driver’s licence.
    The jurisdiction in which you vote.

    It does not matter whether your permanent home is a house, an apartment, or a furnished room. It also does not matter whether you rent or own it. It is important, however, that your home is available at all times, continuously, and not solely for short stays.

    Canadians should pro-actively complete and file a new 8840 form each year with the U.S. Internal Revenue Service. This is a positive acknowledgment that you are entering the U.S. each year as a “temporary visitor for pleasure” and are complying with U.S. tax laws. A photocopy of each year’s completed form should also be carried, when crossing the border into the U.S. the following year, to indicate that you are entering the U.S. as a temporary visitor from Canada.

    AND, what he needs to know re Ontario Provincial Health Care Coverage: http://www.health.gov.on.ca/en/public/publications/ohip/travel.aspx

    How long can I be absent from Canada and still maintain my OHIP coverage?

    You may be temporarily outside of Canada for a total of 212 days in any 12 month period and still maintain your OHIP coverage as long as your primary place of residence is still in Ontario. However, the ministry does have extended absence provisions which are outlined below.
    Absences Outside Canada

    You may be eligible for continuous OHIP coverage during a longer absence when you are away for one of the following reasons :

    Study outside of Canada
    Work outside of Canada
    Charitable work outside of Canada

    To be eligible for continuous OHIP coverage during one of these absences, you must first have been physically present in Ontario for at least 153 days in each of the 12-month periods for 2 consecutive years immediately before the absence. Different physical presence requirements may apply if you are an Ontario student studying full-time outside of Ontario but within Canada, and you choose to continue your studies at an educational institution outside of Canada.

    To confirm continuous OHIP coverage during any longer absence from Ontario, you should contact your local ServiceOntario centre before you leave the province. You will need to show a document explaining the reason for your absence as required; for example, a letter from your school, employer or sponsoring charitable organization.
    Other Types of Absences

    You may also be eligible for continuous OHIP coverage during an absence when you are away from Ontario for any reason(s).

    To be entitled to continuous OHIP coverage during your first of these absences, you must have been physically present in Ontario for at least 153 days in the 12-month periods for 2 consecutive years before the absence.

    Further absences of this nature will be permitted provided you are physically present in Ontario for at least 153 days in the 12-month periods for 5 consecutive years before each subsequent absence.

    You should contact your local ServiceOntario centre to confirm your eligibility for continuous OHIP coverage during any absence before you leave Ontario.

    And, very soon there will be an electronic record of dates crossing the US border and returning across the Canadian border (from my previous comment http://isaacbrocksociety.ca/2013/11/25/the-best-fatca-video-yet-american-empire-and-the-most-important-law-youve-never-heard-of/comment-page-2/#comment-715240).

  15. Left a large message with AM980 here in London. I’ve sent out to more than 6 media possibilities so far….

  16. @ Calgary411
    Thanks for the snow bird info.
    It will be helpful when I find another snowbird who wants to know. I do find that my advice is resented or thought to be crazy.

    Perhaps these people will wake up and realize I did know what I was talking about. I am starting to feel like Cassandra.

  17. They can protect themselves if they do things correctly. It’s a shame. I’d say that it’s not going to get better and it’s not going to stay the same with the new US-Canada border initiatives taking place.

  18. @northernstar

    So many snowbirds have been under the misconception of “183 days a year, no problem!” for so long that they will resent anything to the contrary. Maybe people will be less sceptical if a snowbird advocacy group like the Canadian Snowbirds Association tells them the reality of the situation. As Calgary411 mentioned, people can even download the proper forms to have in hand when they cross the border. Knowledge is our best defence!

    http://www.snowbirds.org/home

  19. BTW, I believe 183 days in one year is fine as long as you don’t return for 2 years, and that includes any day trips over the border!

  20. @all

    The FATCA video in this link is indeed an excellent satire on the effect of FATCA. At the end of the video there is a reference to an essay written by someone called Robert Morris, entitled “FATCA and the new birth of American Empire”. It is available on Amazon.com and can be downloaded to kindle for $3.74. I did so last night and it is an excellent read.

    What is significant is that it is not about the effect on USP. We are simply collateral damage in the US plan to take over the worlds financial system. He explains in a straightforward, easy to understand, manner, how this will be accomplished on FATCA.

    Politicians may pay more attention to this than the human rights of individuals, which they seem to care nothing of.

    I encourage everyone to obtain and read a copy of this essay. You can get through it in an hour or so and is an excellent, impartial, read on the subject.

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