Monthly Archives: May 2014
It took 15 years for this child born in Mexico to Homeland parents to prove her U.S. citizenship
Are you worried that you might have inherited “U.S. Personhood” from an American emigrant parent, but never had your status documented and have lived your whole life solely as a citizen of the country where you actually reside? Then you might find this case interesting. Via the Seattle Post-Intelligencer:
Cerrina was born prematurely in 1999 while her mother was visiting Mexico. Both of her parents were American citizens, but due to her early birth and some language difficulties, she wasn’t issued the correct form for babies born to American parents abroad. No one told her mother such a form was needed. When Crissy Foster brought her daughter home to Longview after the birth, the border guard who let them back into America even congratulated her on what he assumed was Cerrina’s automatic dual-citizenship, she said Friday.
But Cerrina didn’t have citizenship anywhere, as her mother soon learned … The United States wouldn’t issue a birth certificate to Cerrina without the correct paperwork from Mexico. And Mexico also didn’t claim her, because by law she was an American. At first the paperwork glitch seemed minor. But her case dragged on. It took a petition to the Mount Vernon School Board and a conference call with then-Congressman Brian Baird just to get Cerrina enrolled in kindergarten. She couldn’t be on her mother’s health insurance policy without a birth certificate, either.
From MapleSandbox.ca: “Anyone getting the FATCA Call?”
“Anyone else getting the FATCA Call” (from MapleSandbox.ca)
Has anyone received the FATCA call from their bank, investment firm or other financial institution?
Johnnb posted the following under What’s New, but it definitely needs its own thread:
In a previous post I described how my wife and I decided to get our (backdated to 1973) CLNs. We applied in January of 2012 and the CLNs arrived in July 2012. We promptly made copies and gave one to our financial advisor at Scotia McLeod.
Controversial US Tax Law Affects Many American Expats and How It May Compromise Canadian Sovereignty, This Sunday on Contact
UPDATE: Here is the podcast: John Richardson interviewed on AMI “Contact” May 25, 2014.
Tune in this Sunday at 7 and 10 p.m. when Contact examines the Foreign Account Tax Compliance Act. The US legislation will require American expatriates to report their financial accounts held outside of the United States. This legislation will also require foreign financial institutions to report to the Internal Revenue Service about their American clients.
Some have criticized the legislation as an invasion of privacy and Canadian sovereignty. In some cases, people with Registered Disability Savings Plans are fearful the legislation could adversely affect them.
May 25: Under the controversial US Foreign Account Tax Compliance Act all non-US financial institutions, including Canadian banks, must make information known about financial accounts owned by US expatriates. Some have called the legislation an infringement of Canadian sovereignty. Toronto lawyer John Richardson discusses the legislation, its potential impact and his reasons for opposing it.
Hear more. Learn more. This Sunday at 7 p.m. and 10 p.m. make Contact …on AMI Audio.
Russia pushes back on FATCA
Finally, one country seems to have relocated its testicles and is calling America’s bluff on FATCA reciprocity:
http://rt.com/politics/160764-russian-banks-fatca-ban/
Whatever else one might make of recent events involving Russia, the nation deserves praise for tossing the FATCA live grenade squarely back into the laps of its authors. Russia realizes full well that there will never be reciprocity in any FATCA IGA and that there is thus no reason to surrender Russian sovereignty and to share private banking information with the IRS. There is also increasingly less to fear from the American threat of FATCA sanctions as Russia rapidly expands multilateral trading agreements which bypass the increasingly unfriendly and toxic U.S. dollar. If anything, FATCA is serving as an unintended, yet effective catalyst for a major realignment of global trading currencies which should have occurred years ago.
If only Canada’s pathetic Conservative government would have shown half the intelligence, foresight and resolve of the Russians and refused to capitulate to FATCA’s hollow threats and even hollower promises.
The American Government is a Huge Pain in the Rump
A twitter friend tweeted this article this morning. It is refreshing to hear a non-expat source describe our feelings so well. Kind of like enjoying comfort food on a long, dreary rainy day. Of course the site has a motive for taking this position (investment in precious metals, –Hi Chears! ), but thought you might enjoy anyway.
Excerpts (all emphases mine):
It isn’t for tax reasons that all expats are renouncing their citizenship, for sure, but it is telling that as the July 1 deadline looms for the full implementation of FATCA (the Foreign Account Tax Compliance Act), renunciations are sharply on the rise.
The IRS is literally chasing Americans away from their homeland.
Few other countries treat its citizens living abroad as terribly as America does. It is like we have some sort of vendetta against them. Expats are not using our roads. They are not using our schools. They are not being protected by our military. On what possible basis would they owe taxes to the United States if they are living and earning wages abroad? There is no justification, just that the government thinks it can get away with this, so it’s the law. And it’s getting worse.
Report to Members and Committees of Congress / extra-territorial U.S. tax law and how it shall be enforced in other countries
Summary
All citizens of the United States as well as U.S. resident aliens are required to report their worldwide income for U.S. federal income tax purposes. However, where foreign assets are involved, this is an area in which taxpayers, knowingly or unknowingly, may fail to comply with the law.
There are numerous information reporting requirements involving foreign assets that may assist the Internal Revenue Service (IRS) in recognizing a failure to report foreign income; however, both taxpayers and tax preparers may not be fully compliant with filing these forms. Again, this may be more a matter of ignorance of the requirements than any intent to skirt the law.
Neither the reporting requirement imposed by the Foreign Account Tax Compliance Act (FATCA) nor the Foreign Bank Account Reporting (FBAR) imposed by the older Bank Secrecy Act directly involves reporting income for tax purposes. Instead, each involves reporting the existence of financial assets or accounts located outside of the United States. Although in some cases the same accounts or assets may be reported on each information-reporting form, both forms may be required. Failure to file either form if required may result in significant penalties, in some cases amounting to the entire balance of the unreported account or more. Continue reading
Victoria is first up: AARO recap video of “Overseas Americans Week”
Glad to post, Em:
Overseas Americans Week – Recap from AARO
As we tune in, thanks, Victoria and AARO — especially videographer, Mathieu.
Dear Conservative MP: Can ALL Canadians travel to Cuba (or any other country) on their Canadian passport – even if they are deemed to be a ‘US Person’?
In how many ways should CANADIANS who are deemed US citizens have US law take precedence over Candian law? Will it be only about US taxation and financial reporting to the US of those deemed US Persons in Canada — or will it extend to what passport we use to travel to other countries, perhaps firearms laws, capital punishment laws, etc.?
Just how many of our rights under the Canadian Charter of Rights and Freedoms will you vote away now that you determine it OK that Canadian financial privacy of deemed US Persons is no longer their right as you condone discrimination by US national origin? I ask because of the following that appears on the Toronto US Consulate web site:
Another question on dual nationality: Is it okay to travel outside of the U.S. on my other passport?
“While the U.S. does not prohibit dual nationality, Americans must comply with U.S. laws (e.g. federal and state taxes, selective service, and foreign assets control) regardless of their location. Thus, a dual citizen who travels to Cuba on a Canadian or other passport, may violate U.S. law and be subject to criminal or civil penalties.”
As Kathy asks:
I wonder if all those bankers and Conservative MPs would be happy to have our duals going to Cuba for a winter vacation being charged as criminals. They’re US citizens, so they have to follow US laws even if they’ve spent their entire lives in Canada, right? That’s what they said about filing US taxes. So I guess we can assume that they’re OK with Canadian duals not traveling on a Canadian passport? And we can assume that they’re OK if a Canadian dual travels to Cuba on a Canadian passport and then is charged as a criminal by the US?
George comments and poses questions to ask Canadian MPs:
Will Canada enforce the US restriction on travel to Cuba of a Canadian Citizen, resident in Canada, with “clinging US nationality,” who travels on holiday to Cuba with his/her Canadian passport?
I would like to suggest a letter writing campaign bringing this to the attention of various MPs and asking if Canada will enforce this ban and aid the US Government. The reason is that it will flush out the sovereignty question.
Must you have a CLN to travel to Cuba on your Canadian Passport?
Or can you travel to Cuba on your Canadian Passport if you have a reasonable explanation of why you do not have a CLN despite having relinquished your US citizenship?
If you have an unambiguous place of birth in the USA can you travel to Cuba on your Canadian Passport at all?
More re invasions of Canadians’ privacy, as reported in the Calgary Herald
I received this from “Disgusted” who, for some reason, isn’t able get a comment to take at Isaac Brock:
Ottawa slyly expanding its power to invade our privacy
…Bill C-13 is the child of C-30, which was abandoned by the government after previous public safety minister Vic Toews said his Liberal critic could “either stand with us or with the child pornographers.”
Unlike C-30, C-13 does not require service providers to hand over personal information to police without a warrant, but it allows them to do so, which, in practical terms, is the same thing.
This will provide legal cover for what they are already doing. Last month the privacy commissioner reported that in 2011, government agencies requested data from telecoms and social media companies more than a million times.
What kind of data? The government won’t say. Conservative MPs recently voted down an NDP motion to make public the number of warrantless disclosures from telecom firms. When asked about this in the House, Public Safety Minister Steven Blaney and Justice Minister Peter MacKay give misleading answers, blathering on about warrants when none are required and giving assurances that contradict the legislation. This week, Revenue Minister Kerry-Lynne Findlay joined with them in disingenuity when she responded to a question in the House about a clause buried in C-31, a massive budget omnibus bill.
The bill will allow Canada Revenue Agency officials to give taxpayer information to police if officials have “reasonable grounds to believe” that certain offences have been committed. Continue reading