New York-born London mayor Boris Johnson refuses to pay US tax bill http://t.co/MaKDcZnTnM via @guardian U.S. London Emb won't pay con "tax"
— U.S. Citizen Abroad (@USCitizenAbroad) November 20, 2014
Read the complete article here.
It includes:
Boris Johnson has revealed that he is refusing to pay a tax demand issued to him by US authorities – despite previously lambasting the US embassy in London over its failure to pay the congestion charge.
The mayor of London, who was born in New York and holds a US passport as well as a British one, visited the country last week to promote his book and said during an interview with NPR (National Public Radio) that he had been hit with a demand for capital gains tax.
He said the US demand related to his first home in the UK, which was not subject to capital gains tax in England.
And for the absolute and total U.S. hypocrisy:
Johnson has continually pressed the US embassy to pay unpaid fines it has incurred for the congestion charge. The embassy has refused to do so, claiming the charge is a tax and therefore its diplomats are immune. During a visit to the UK by Barack Obama in 2011, Johnson reportedly asked him for a £5m cheque for unpaid congestion charges but the US ambassador intervened before the president could answer. By last year the amount the US embassy owed in congestion charge fines had risen to more than £7m, the most of any diplomatic mission in the capital.
Tom Dooley @JahMekAWail has been quite active on the subject of FATCA on Twitter. This might be a good method to get info out to thousands of people.
@Cakgary411 … same result … so far ….
From: nervousinvestor@hotmail.com
To: mayor@london.gov.uk
Subject: US Extra Territorial Tax Grab – a friendly note
Thank you for your interest in the work of the Mayor and the Greater London Authority, we are keen to answer your query as quickly and fully as possible. As you will appreciate, the Mayor receives a very large amount of correspondence but he is committed to responding to your query within 20 working days.
Further information on our service standards, and where exceptions may be applied, is available on our website at: http://www.london.gov.uk/contact-us/service-standards
Where appropriate we may refer queries to the relevant Greater London Authority (GLA) functional body for them to reply, for example Transport related queries will be passed on to Transport for London (TfL).
Thank you for taking the time to write to the Mayor of London, Boris Johnson.
Yours truly
Public Liaison Unit
@Gareth Pentworth – sounds like a solid Briton from Wales there.
This could, quite possibly be the news break we have all been waiting for. If Boris comes to IBS and show his support, he will find our support for him. The world is just beginning to see how people will react to Fatca.
Kermitzee mentioned the housing price boom in Canada leading to large perceived capital gains. We had a similar boom here in Australia, and I enjoyed what would have seemed to be windfall profits on my family home. The house prices here are enough to make the average homelanders’ head spin, and would make us seem, in their eyes, contemptible rich fat cats. But unless one chooses to stop living indoors, one can hardly cash in on this largesse.
I took the money and built myself a house in the country, which at one time may have been considered the American Dream. I was ready to sit down and live happily ever after. Then somehow this monster called the “benefits of being a US citizen” shoved it’s way into my life, and shared with me the American Nightmare. And as far as I knew, I wasn’t even a US citizen.
This is what would happen if I was to play ball with them.
1. I would owe them a very large capital gains tax as I recieved almost four times the purchase price.
2. Because the money was paid into a bank, I would owe a huge FBAR penalty, even though I had never heard of FBAR
3. As it took me a few years to build the house, it took me a few years to disburse the funds, adding a few more serious FBAR penalties.
4. The amounts they would want for the previous three entries would exceed the amount that I would have profited in the first place, and to satisfy the debt I would likely have to sell this house I built with my own hands and move to a trailer park somewhere.
I wish I was exaggerating here.
From Macedonia OnLine “Hell No, Won’t Pay”
http://macedoniaonline.eu/content/view/26463/52/
So far, Boris has been silent about FATCA. He must know about it. Doesn’t this mean all the accounts for which he has signing authority for London must be reported? Will UK banks FATCA his personal accounts or will they give him a pass because of who he is?
@ Proud Aussie
I know exactly the problems with “building your own”. We did down there and we are still doing so up here. None of your own labour gets counted in the base price. Only land price and materials (hold those receipts) count as far as they’re concerned. That makes the gain on a self-built home sale even greater. Luckily our house sale gain did not exceed the exemption amount but I think about people who bought their homes maybe 50 years ago and sell today — their gains could easily go over the top — yipes! When you retire and down-size you really need every penny from your house sale to stave off a possible future of living in a very sub-par senior’s institution. I know of one which isn’t rat infested (no rats in this province, they say) but it has been known to get ant infested at times.
It’s simple if Boris won’t pay why should anyone else? The US has a real ex-pat tax revolt on its hands.
I wonder if from here on, there will be behind the scenes negotiations and then Mayor Johnson will pay an undisclosed but greatly reduced extortion fee to the IRS. He may be able to put the matter behind him but unfortunately regular folks cannot. We really need this man to vocally protest and do it not just for himself but for the good of all. Does the “good of all” ever pass through the thoughts of any politicians anymore though? I’m not seeing much of that lately.
@EmBee
*no rats in this province*
Cause the majority of them are in Ottawa… especially the ones who seem to think our gov’t is part of the US gov’t…. psst… did u hear… we got a congress now? I must have missed that when they hide that one in some big old budget…. that no one will read… it probably also says… even if u were born Canadian… u are now a US Person residing in Canada… ohh… wait… they did that already…
@all
Don’t you think Boris would get a real kick out of who IBS is named after?
@ProudAussi
My story is similar to your’s and the London mayor’s only I entered OVDI (for various reasons you can read about only Brock bio if you want). We’ve now been moved to Streamlined and just yesterday heard that our case is CLOSED and we will not be charged FBAR penalties and will have our failure to file penalties on our house gains reimbursed to us in the next few weeks.
Take what you wish from my experience.
@ Bubblebustin
CASE CLOSED!!!! That’s wonderful news but what a loooong ordeal for you and your husband. It must have felt like you were walking around on egg shells, holding your breath, for the past 3 years. Too soon probably to know what your next move will be but for now I imagine you are content to exhale massive sighs of relief. Best wishes to you both.
You might want to update your profile with a CASE CLOSED comment, lest someone reading it thinks you are still in IRS limbo.
@Bubblebustin,
Good news! I hope you get the CHECK soon.
@Bubblebustin
Congrats… you & your family’s ordeal is over… a sigh of relief I am sure… Next part of your ordeal will be chasing down the gov’t for your funds back… as I think someone mentioned here… they had to keep on top of it cause the gov’t made mistakes on the amt they paid back to them…
Well, one thing is for sure. A whole lot of people in the UK are having their OMG moments right about now.
No country, with the exception of the USA, grants citizenship so easily, yet simultaneously equates citizenship with taxpayer status, whilst making renunciation so difficult.
You really, cannot make this stuff up!
Bubblebustin: I am*soooooo* happy for you! Congratulations!!!!
And to everyone: we couldn’t have bought advertising as good as this Boris Johnson thing. You go, Boris! As Don said: ” … The US has a real ex-pat tax revolt on its hands.”
Oh my, Oh my, bubblebustin. Do you believe this has finally happened? I am so very happy for you and yours!!!!
Failure to file penalties for your CANADIAN house gains to be reimbursed. Bravo!
Congrats, Bubblebustin!
Regarding Boris, whatever end up happening to him, the media coverage alone is valuable in exposing the US’s practices to public scrutiny. Could only wish that more American media channels would pick up on the story. Shine the light!
@Bubblebustin, I’m so happy for you that your case is closed!!! You must be so relieved and will feel even more relieved after you receive your checks. I remember how drawn out and uncertain everything has been…it will also mean you can now decide how to proceed. :D. My understanding is that you’ve still suffered a heavy capital gains tax on the sale of your house a few years back which really sucks, but it’s encouraging that your penalties have all been waived, as am sure the OVDI miscellaneous penalty would have been devastating.
Bubblebustin , happy for you .
Laura Saunders @Saunderswsj 6h6 hours ago
Will flamboyant London Mayor Boris Johnson become a poster child for Fatca repeal? http://on.wsj.com/1z4l48f
Interesting Tweet by Laura Saunders. She did not make that the title of her latest article but this:
London’s Mayor Calls U.S. Capital-Gains Tax ‘Outrageous’
Glad to hear you’ve finally got that behind you, Bubblebustin!
One of the comments:
to Laura’s (a well-informed homelander):
I especially like:
I’ve heard that Laura is REALLY beautiful. But unfortunately suffers from a multiple personality disorder.