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.
@ProudAussie,
I think if Uncle Sam gets his greedy paws on Expats who live in other countries, the most dough will be gotten from capital gains tax in places such as Australia and Canada, where the housing market has been so robust compared to that molding donut down south. Uncle Sam effectively double taxes us on owning a house in Canada, as a resident of Canada cannot take the mortgage interest deduction, and then we get taxed on any appreciation over $250K. Might sound like a lot of money, but when I bought in 1998 a 33 foot lot was about $400K. They are now $1.8M at least. Math question: what is (1.8M-.4M) times 0.2 (the cap gains tax) times the number of Canadians of US taint in Vancouver and Toronto who have realized this gain. It is ballpark $280,000 for every one of us, maybe there might be a half million Expats in this do I need to convert to exponents now for the math and to see what fraction of the US debt can be paid by Canadians living and working in Canada and paying taxes to the government that provides services and maintains infrastructure unlike our southern bullies. Excel gives me the answer 1.4E11, or $140,000,000
,000— 140trillionbillion! That would nicely pay off that debt and even finance another war or two in the middle east! Maybe I overestimated the number of expats who are in this shape, but certainlytrillionsbillions of dollars. This by far overshadows the other types of taxes that he wants, as for example, I have never owed any income tax to USA because the taxes in Canada are higher. There are certain investments that he wants to tax but the appreciation of real estate in Canada has far out-shadowed anything else.Whoop, I lost track of the zeros. 140 billion. 10% of USA debt. Will have to start scavenging those savings accounts of the elderly in Canada.
@kermitzi, what you say, ALMOST makes me happy I bought my first house in Hamilton ON, in 1989. Thirteen years later, it was worth what I paid for it.
kermitzi,
Thanks for your calculations. If correct, that figure is mind-boggling and obscene and I want to scream. The price of my old creaky, leaky, never-ending maintenance required house of 1908 in Calgary has a $769,000 capital gain (per City of Calgary assessment) from the time I bought it. It is the inheritance I leave for my kids after my and my husband’s needs in our aging years.
@Calgary, Good for you. And it belongs to YOU, not to the US government.
@Whitekat,
I bought in Toronto 1992 and had to sell when I moved to Vancouver 4 years later. Lost 20%. Of course you will not get a reimbursement from Uncle Sam should you have negative cap gains.
@calgary,
I think at least $10 billion for Uncle Sam should he want his hand in our assets. I see it is not just Toronto or Vancouver but Calgary has had good appreciations but they tend to roll and flow with the value of Canada’s rocks and oils.
…almost anyplace in Alberta or BC and even Saskatchewan, also because of those rocks and oils. We’ll see what happens to assessments in today’s climate of declining oil price. They are probably setting up the printing presses again to make more bumper stickers that say ‘Please God, give me another oil boom, and I promise this time I won’t piss it away’.
@kermitzii
When one considers how many zeros are involved to feed this habit we call living indoors, capital gains for amounts over 250k can be quite substantial. And the IRS comes armed with terms like “perceived capital gains” which is an oxymoron at best. Capital gains arise when you sell something for a profit, not when you coulda shoulda woulda. You can’t percieve a capital gain. It’s either happened or it hasn’t.
The problem is that what they see as an enormous capital gain, I just see as my home. Which, by the way, I have no intention of selling. But even if I did sell, I would still not be all those dollars ahead, because I have to live somewhere. And as for the house I did sell, a very large chunk of the money went into building this house I live in. It’s not like I’m sitting on a bunch of moneybags laughing my head off. Although Mr. Obama has seemingly implied that I am doing something quite similar to that.
From Google Alert for FATCA: Insurers prepare to comply with tax rules for offshore accounts
…refers to commercial property insurance, which is likely as hideous as would be FATCA applying to personal property insurance, which it apparently doesn’t. The property insurance of any commercial property held by a *US Person* entity — what absurdities and complexities will that entail — with the same appreciations of commercial and personal real estate?
Why I continue to resist the FATCA IGA: the lessons of history.
My partner’s ancestors were German Jews who left before the Holocaust.
It is VITAL to remember that Germany Jews did not go from being equal German citizens to concentration camp inmates overnight.
The ECONOMIC and CITIZENSHIP rights of German Jews were systematically legislated away in advance of the Final Solution. They were reduced to 2nd class citizens – and later far worse – through systematic laws drafted by lawyers and bureaucrats in a so-called modern and democratic society.
I again urge everyone to read the superb book “In the Garden of Beasts: Love, Terror, and an American Family in Hitler’s Berlin” by Erik Larson. And watch the excellent BBC film “Conspiracy”; based on the minutes of the Wannsee Conference, where the Final Solution was planned in cold blood. Note especially the use bureaucratic use of language to justify the Final Solution.
We are never far from legally justified state violence. See:
“US cited controversial law in decision to kill American citizen by drone”
http://www.theguardian.com/world/2014/jun/23/us-justification-drone-killing-american-citizen-awlaki
“Lawyers for the Obama administration, arguing for their ability to kill an American citizen without trial in Yemen, contended that the protection of US citizenship was effectively removed by a key congressional act that blessed a global war against al-Qaida.”
Little doubt that the suspect Anwar al-Awlaki was probably a murderer and a terrorist. But the US decision to SUSPEND due legal process and assassinate a US citizen abroad has far reaching implications, especially the concept of negating citizenship by unilateral fiat.
The Harper Conservatives abused their majority position to debase the legislated citizenship rights of certain Canadians based upon place of birth and in capitulation to foreign state’s demand for tribute. Their shameful cowardice must never be never forgotten.
It is a similar action – the diminishing of citizenship by unilateral fiat – only lesser in its degree of effect.
And if they get that 10 billion it will be by going straight to the jugular and attacking those nest eggs we’ve spent a whole lifetime building. Some people will likely pay a serious amount to avoid being challenged for all of it. The worst part is in being aware of just how quickly they can piss away 10 billion dollars.
@WhiteKat
I totally agree, and thank you for mentioning us, who, for family reasons never took out citizenship even though some of us have lived and worked here for decades…36 years in my case. Why didn‘t we ever become Canadian you may ask? Its quite simple. Imagine having no family here and wondering about who would look after us when we cannot do so for ourselves. We could not burn bridges then and still can‘t. I have nothing but respect for all you accidentals , renouncers and relinquishers…your cause is just and I think you’re all amazing! But for us with US ties, remember that we sing O Canada lustily and consider this our home. Legal Permanent Residents cannot be left holding the FATCA bag. I hope the suit recognizes this.If not, I for one, may lose everything and be forced to go “home” and collect welfare after FBAR fines. And I’m not joking! What’s worse is that the confiscation would be of Canadian money earned and already heavily taxed in Canada. Now that too would be a gross injustice. Sometimes I despair…
@WhiteKat
I have another question to add to your list.
Why are the opposition parties in your country and mine not picking this up and running with it?
What a reasoned and excellent description of the analogy with which we all compare what is happening to us with FATCA enforcing US citizenship-based taxation law on *US Persons* Abroad, concluding with…
Thanks for your illustrative wonderful comment, Wondering!
http://www.taxanalysts.com/www/features.nsf/Features/9FC48A57B09F00B085257D970054A723?OpenDocument
November 21, 2014
‘News Analysis: Will London’s Mayor Enter the OVDP?’
by Ajay Gupta
Tax Analysts article that seems to be seriously espousing the position that Boris Johnson should enter OVDP. I’m waiting for one of these authors to trot out the usual hallucinatory list of imaginary ‘benefits’ that they will claim the US has been providing to the Mayor of London.
More opportunity to recruit to IBS:
IRS Hounds Mayor of London for Taxes on UK House
http://www.the-american-interest.com/2014/11/23/irs-hounds-mayor-of-london-for-taxes-on-uk-house/?utm_source=dlvr.it&utm_medium=twitter
@badger
In fairness, the article itself refers to the “streamlined OVDP for U.S. citizens who live outside the United States”, which I suspect is meant to be what we normally call the Streamlined Program/Procedure. If so, it’s a reasonable way to get compliant. OTOH, I agree that the title of the article makes it sound like BoJo should enter the penalty inducing misery of OVDP.
It’s rather sad that a tax publication that bills itself as an “influential provider of tax news and analysis for the global community” would be less than crystal clear on what it’s trying to say.
@Lake Superior Guy- That is so true. Landed Immigrants count too !
We need not ask questions n my view … this sort of thing was written about by Orwell a long time ago.. The Fabians believed in this sort of thing and that was the foundation for today’s bureaucracy. The stained class window at the London School of Economics makes this plain. They are re-forging the world to suit their own pleasure. They consider themselves brighter and more educated than the rest of us mass and consider that they must mould us into what THEY decide is in our best interests.
http://www.freedomforceinternatiohttp://www.lse.ac.uk/newsandmedia/news/archives/2006/fabianwindow.aspxnal.orgfreedomcontent.cfm?fuseaction=fabianwindow
@Wondering – what a powerful testimony you offer as to the most serious reason why too much information in the hands of Governments is a bad thing. THIS is the primary reason for my objections to FATCA. Taxation comes second. I say this NOT being a US Person but having family and friends who emigrated there (primarily to escape the threat of communism hiding under a cloak labelled Democratic Socialism at various times since the 1960s) who I do enjoy visiting. I keep saying People need Privacy and Government must be Transparent; flipped in the vice versa this is a very dangerous situation.
@ProudAussie, ” I was told by immigration that since I was born in the US (stated on my passport) that I would have to have a US passport if I wished to travel there again.”
Shazam, for the first time I can picture what happened and understand what you did not know then that you did know now.
The “correct” reply you should have made was “I relinquished my US Citizenship under 8 US Code when I became Australian. Here is a copy of my Australian Naturalisation Certificate.”
As a young lad growing up many many moons ago, I knew USC who when they traveled to the “old country” always took their US Naturalisaztion Certificate and a copy of the US Oath so they could prove in the old country that they were no longer of the old country.
To put it bluntly, you were simply caught off guard and did not know better. Had you claimed you relinquished, you then would have been told have a good day or maybe given a recommendation to document it so you would not have future trouble.
Instead of pushing passports, border guards should be pushing CLNs!!
My own relinquishment is kind of complex that a few here know the details. When I made the first journey back…because I had to for family reasons…..I was prepared for matter of facts but did not even have to open my mouth.
@theOAP, Please stop using the term dual citizen as that term does not exist in UK Law.
Unless and only unless you are referring to yourself as a Commonwealth Citizen and/or a European Union Citizen.
IBSers know I have a bee in my bonnet on this but when we call ourselves dual we are inviting and adding legitamacy to claims of other nations.
You are a British Citizen resident in the United Kingdom, nothing more and nothing less. There is no UK law that recognizes the US Citizenship or any other Citizenship (except I think Ireland) of a British Citizen.
It is true that there is no law preventing a British Citizen from having a blue book in his dresser drawer. But there is also no law recognizing the little blue book in the drawer of a British Citizens dresser!
To the extent that the UK does not prohibit “dual citizenship” is no different than the UK allowing breathing! There is no law allowing breathing but you still breath.
Further the UK subscribes to the Master Nationality Rule, google it and download the UKBA publication.
Whilst in the UK if someone asks you your citizenship, you should say British, full stop. Dittos reversed in the US.
@Wondering/@WhieKat, I am the dog.
USG employees in USG offices during USG hours called me a dog to my face. Thats what they thought of my relinquishment, but I kept my tongue.
@Whitekat, “Our FIRST DEFENCE should be the government of the country where we live and are citizens of (this is where George comes in).”
Yep, because its a citizenship problem. You can only enter a Country on ONE Passport. The Passport you enter on, rules because it establishes your relationship with the issuer of the passport itself and the country you enter into.
On his book tour in the USA, Boris Johnson was NOT a British Citizen. Had be been arrested, he would not have been afforded protection by HMG. Why? He entered the US on a US Passport leaving the protection of HMG behind.
When he returns to the UK and enters on a UK Passport he is solely and absolutely a British Citizen.
Dual/Multi Citienship frankly does not work!! Well it can work when you apply the 1930 treaty…….but the USG does not follow international norms….
I have always believed that we need and must demand that each of our home nations if they agree to demands by the USG that they rightly ignore and look through the clinging nationality that someone may have.
@Don, “The fact the US makes it problematic to shed US Citizenship, raises the fee to $2350, a foreign court may take the view the US is trying to handcuff people to the system.”
I think they have crossed the rubicon here and hope @AnneFrank could comment accordingly.
It appears that such actions are beyond the UN Decleration of Human Rights making it impossible to remove unwanted citizenship because you already have a dominant other nationality.
I am using this as a means to educate my MP comparing our own easy and cheap renunciation fee and process. I am pointing out the burdensome expense to all my children as they will need to shed their unwanted and effectively accidental USC when they leave University.