I wonder when the arses that are leading the various nations of the world will stand up to the United States. For one, the Canadian government has claimed that they are powerless to change US law, and so they are working on an IGA to sell out Canadian citizens to the IRS. Why don’t they invoke international law? Because they don’t have the balls, and until our leaders each get a pair, they are not worthy of our support. The law in question is the Master Nationality Rule. Here is an excerpt from a blog which shows that both FATCA and citizenship-based taxation are illegal according to international law (emphasis mine):
While nationality laws can be rather straight forward to those who lived in their native countries and never emigrated it can be confusing to those whose families had emigrated to different places over the generation or in a few cases those who marry people from different countries.
What many are unaware of is that there is something under International treaties called The Master Nationality Rule. It is listed under Article 4 of The Hague Convention on Certain Questions Relating to the Conflict of Nationality Laws of 1930. In terms of practical effect, it means that when a citizen is in the country of one of his two or more nationalities, that country has the right to treat that person as if he or she were solely a citizen or national of that country. This includes the right to impose military service obligations, require the person to enter and or exit the country using the country’s documentations, or to require an exit permit or other restrictions to leave the country. If any of the above is an issue there is little if anything the consulate of the person’s other country of citizenship can do as the Master Nationality Rule states that “a State may not afford diplomatic protection to one of its nationals against a state whose nationality such person also possesses.” The UK Home Office explains this rule as “the practical effect of this Article is that where a person is a national of, for example, two States (A and B), and is in the territory of State A, then State B has no right to claim that person as its national or to intervene on that person’s behalf.
Essentially what this means is that the United States may only ask other nations to kindly apply FATCA to US citizens who are resident in the US. Furthermore, the US may not “protect” its citizens abroad who have a second nationality, and therefore, they do not have the right to tax them–i.e., this is the basis for the illegality of citizenship-based taxation. So e.g., a Canadian living in Canada is only Canadian according to the Master Nationality Rule. For the Canadian government to discriminate against so-called US persons living in Canada would be a violation of the Canadian Charter of Rights article 15 as well, so that capitulation to FATCA would violate both international law and Canadian law. This means that Canada was right to send the Eritrean diplomats away from the country for imposing citizenship-based taxation on Eritrean expats living in Canada. And Canada would be right to tell the Yanks to take a hike. But our leadership, unfortunately, does not have the balls to stand up to the Americans. We need them to invoke international law and we need them to stand up to this bully now. The current waffling and weak posturing of the Canadian government has already caused serious damage to Canadian citizens.
Finally, for those smart lawyerish people out there that say international law has no validity in the United States: Stuff that view where the sun doesn’t shine! When running for president, Obama promised that he would honour international law, but he has done the opposite. So international law is an American ideal to which they give lip-service, but their actual policies, like FATCA, require generous spritzing of Poopourri. International law is a pillar of global peace. Under international law, nations learn to get along, and it is a significant instrument for the protection and honour of the sovereignty of nations. Disrespect for international law leads to war. If the US wants to avoid war with every nation in the world, then it must relent from this evil course of action. But already, FATCA is an economic war game that the US is playing. How long will it be before the US begins to threaten to use its military might including its nuclear arsenal against the peaceful nations of the world which at one time, like Canada and Britain, were its allies?