UPDATE: JUNE 14, 2015
from JakDak:
The Senate Finance Committee chairman, Senator Orrin Hatch (R-UT), has established working groups to study different aspects of the tax system. These working groups are scheduled to report back to the committee by June 26.
Tax Policy Update
June 09, 2015[Interesting: NUMBER OF THE WEEK: 61. The number of countries that have signed on to implement the OECD’s multilateral agreement for the automatic exchange of tax information, in conjunction with the ongoing Base Erosion and Profit Shifting (BEPS) project. Although the U.S. has committed to implement the standard, it has not yet signed onto the formal agreement (the “multilateral competent authority agreement”), which lays out in detail what information will be exchanged, the timing and method of exchange, and how signatories will work together to ensure compliance. Signatories to the agreement will begin exchanging information as early as 2017. Additionally, the OECD released on June 8 its “Country-by-Country Reporting Implementation Package” developed under the BEPS Action Plan. Under the plan, which the Treasury Department has said it will implement for the 2016 fiscal year, multinational companies are required to aggregate and report information annually regarding where they do business, the global allocation of income, and amount of taxes paid, along with other information that will allow taxing authorities to more closely examine multinationals’ tax practices. The release of the package coincides with the 2015 OECD International Tax Conference in Washington, D.C., this week where OECD representatives are expected to review and discuss key initiatives under BEPS.]
SPOILER ALERT: Comprehensive Tax Reform Unlikely in 2015. In an interview last week, Senate Majority Leader Mitch McConnell (R-KY) outlined a busy legislative agenda between June and August recess: passing a highway bill, cybersecurity legislation, No Child Left Behind, and the Toxic Substances Control Act. Tax reform, however, is conspicuously missing from the list. “We’re certainly not going to be able to be doing big, comprehensive tax reform with this president,” McConnell said. Tax reform optimists have been eyeing the highway reauthorization bill as a potential vehicle to move a limited set of tax reform measures, but according to McConnell, the bill might instead be better suited to pick up a different legislative passenger—the reauthorization of the Export-Import Bank. McConnell believes the highway bill would provide the best opportunity to reauthorize the bank, which is set to expire June 30.
The inability of the Senate Finance Committee Tax Reform Working Groups to meet their original May 31 deadline to report recommendations to Chairman Orrin Hatch (R-UT) and ranking member Ron Wyden (D-OR) only adds to the general pessimism. The international tax working group may offer the only glimmer of hope, with reports that it has made the most progress in hammering out detailed recommendations. The working groups are now aiming to deliver their reports before Congress departs for the July 4th recess.
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UPDATE: MAY 25, 2015
Em’s comment to JakDak:
I’m not sure of the where for the SFC recommendations but the when has been delayed:
http://thehill.com/policy/finance/242916-senate-tax-reform-groups-get-more-time
The Senate Finance Committee’s leaders are giving tax reform working groups some more time to formulate their recommendations.
Finance Chairman Orrin Hatch (R-Utah) and the panel’s top Democrat, Sen. Ron Wyden (Ore.), had hoped for recommendations by the end of May.
But in a statement Thursday, the two senators said that the working groups made it clear that they needed extra time to do the job right. The panel will set a new deadline after lawmakers return from next week’s recess.
“It is our hope these bipartisan working groups will use this extended time to finalize their recommendations for tax reform and produce in-depth analyses of options and potential legislative solutions,” Wyden and Hatch said in a statement.
etc.
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Shadow Raider says
April 29, 2015 at 6:39 pm
The Senate Finance Committee just released the comments sent by the public on tax reform. As expected, there are lots of comments about CBT and FATCA.
http://www.finance.senate.gov/newsroom/chairman/release/?id=3b14e94b-69f9-41e2-9fd3-7d191971b7ee
Hatch, Wyden Release Public Input on Bipartisan Tax Reform
Over 1,400 Submissions Made to Working Groups
WASHINGTON – Finance Committee Chairman Orrin Hatch (R-Utah) and Ranking Member Ron Wyden (D-Ore.) today released over 1,400 submissions from stakeholders on how to best to overhaul the nation’s broken tax code. In March, the Committee sought input from the public in an effort to provide additional data and information to the Committee’s bipartisan tax working groups, which are currently analyzing existing tax law and examining policy trade-offs and available reform options within each group’s designated area.
“We thank the stakeholders and public who provided us with this valuable data and input,” Hatch and Wyden said. “These submissions have equipped us with the ability to better evaluate how reforming the tax code will affect both American families and business of all kinds. As our bipartisan groups work towards producing substantive recommendations on how to reform the tax code, they will now be able to consider these valuable ideas.”
All comments received by the Committee that met submission requirements were made public.
Submissions can be found below. Total submissions to each bipartisan tax working groups are as follows:
Individual Income Tax – 448
Business Income Tax – 332
Savings & Investment -128
International Tax – 347
Community Development & Infrastructure – 207
Each of the five bipartisan working groups is currently working to produce findings on current tax policy and legislative recommendations within its area, with the goal of having recommendations from each of the five working groups completed by the end of May.
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Thanks, Shadow Raider, for alerting all here. There will be many Brockers reading, starting with the submissions (not all by individuals) to International Tax.
Be forwarned
FIFA Case Could Strengthen Justice Dept.’s Global Power
http://www.nytimes.com/2015/06/02/business/dealbook/fifa-case-could-strengthen-justice-depts-global-power.html?&moduleDetail=section-news-4&action=click&contentCollection=Soccer®ion=Footer&module=MoreInSection&version=WhatsNext&contentID=WhatsNext&configSection=article&isLoggedIn=false&pgtype=article
Pingback: The Isaac Brock Society | From #FATCA to #FIFA – If you use the $USD you are subject to US jurisdiction – which is NOT good
Democrats Abroad Advocating for Relief from FATCA
https://www.democratsabroad.org/sites/default/files/DA-May-2015.pdf
@JC Re: Attempting to gain leverage from Senate Finance Committee submission to gain attention of Australian public servants: good luck!
http://isaacbrocksociety.ca/fatca-and-australia/comment-page-2/#comment-6155282
All Expats can you help by even sending in (forwarding) correspondence
For TWENTY THREE years the Australian / US Tax Treaty has not recognized the GOVERNMENT MANDATED Pension (Superannuation) thus unfairly taxed. I believe 23 years is TOO long
I have touched base with some of these people and believe they want to help but they need to state the “masses are asking”
Australian Tax Treaty emails
Greg.Wood@treasury.gov.au,lyn.redman@treasury.gov.au, henry.addison@treasury.gov.au, taxtreatiesunit_consultation@treasury.gov.au
Australian treasury treasurerdlo@treasury.gov.au,josh.frydenberg.mp@aph.gov.au,SBMinister@treasury.gov.au, J.Hockey.MP@aph.gov.au, kelly.odwyer.mp@aph.gov.au
Australian AMCHAM CEO NielsMarquardt@amcham.com.au
US head re Tax Treaties Henry.Louie@treasury.gov
US Embassy Canberra MurrayMD@state.gov
Australian ambassador in US Kim.Beazley@dfat.gov.au
AND any media programme you watch or paper you read (Google)
Thus as a mass BCC
Greg.Wood@treasury.gov.au,lyn.redman@treasury.gov.au,henry.addison@treasury.gov.au,taxtreatiesunit_consultation@treasury.gov.au,treasurerdlo@treasury.gov.au,josh.frydenberg.mp@aph.gov.au,SBMinister@treasury.gov.au, J.Hockey.MP@aph.gov.au,kelly.odwyer.mp@aph.gov.au,NielsMarquardt@amcham.com.au,Henry.Louie@treasury.gov,Kim.Beazley@dfat.gov.au,MurrayMD@state.gov
@JakDac
I am in Japan, would my contacting any of them help? If so, what area should I focus on?
Bcc them all
mostly 23 years and not on 2006 US model treaty
@JakDac,
Sorry, I am operating on an average of 4hours of bed time each night this past week. Mental capacity severely degraded. What may be as clear as the noon day sun is likely to elicit an “er…wha?” response from me. Should I just send a question asking why after so long there has not been such and such done?
Should I just send a question asking why after so long there has not been such and such done?
Why has the tax treaty between the US and Australia not been reviewed for 23 years in regard to qualifying government mandated Superannuation pensions to only be taxed in country of origin (Australia) This should be done IMMEDIATELY
http://www.mwcllc.com/updates/articles/2015/6/tax-policy-update-june-2-2015.aspx
Senate Tax Reform Working Groups: Recommendations Likely Delayed Until Late June.
Before the Memorial Day recess, Senate Finance Committee Chairman Hatch and Ranking Member Wyden announced they would extend the deadline for their committee’s five tax reform working groups to develop recommendations for the full committee. While we await confirmation of a new deadline, which we hear will likely be in late June, we will continue to spotlight comments submitted to the working groups. This week: the National Association of Publicly Traded Partnerships.
Members of the Senate Finance Committee’s Community Development and Infrastructure Tax Working Group
Republicans
Co-Chair Dean Heller, NV
Dan Coats, IN
Tim Scott, SC Democrats
Co-Chair Michael Bennet, CO
Maria Cantwell, WA
Bill Nelson, FL
– See more at: http://www.mwcllc.com/updates/articles/2015/6/tax-policy-update-june-2-2015.aspx#sthash.v5B3vdRu.dpuf
Thanks — good find, Jak Dac. Guess we have to cool our heels for awhile longer on these results.
USCitizenAbroad says it like it is: http://isaacbrocksociety.ca/2015/06/05/i-did-it-for-love/comment-page-1/#comment-6166763
Voting Absentee is easy using FVAP’s online assistants. Be absent but accounted for.
http://www.fvap.gov/
7,500,000 ExPats
http://www.fvap.gov/citizen-voter
In regard to
New survey finds US expat voting could impact 2016 Presidential Election – See more at: http://globenewswire.com/news-release/2015/05/26/739115/10135930/en/New-survey-finds-US-expat-voting-could-impact-2016-Presidential-Election.html#sthash.sPw9yVYL.dpuf
Thank you for contacting my office regarding the Foreign Account Tax Compliance Act (FATCA). It is good to hear from you.
As you know, Congress enacted FATCA in 2010 as part of the Hiring Incentives to Restore Employment (HIRE) Act in an effort to prevent taxpayers from hiding assets in undisclosed foreign accounts. The bill requires Foreign Financial Institutions (FFIs)—such as banks, trusts, stock brokerages, or insurance companies—to report certain information regarding the accounts of U.S. citizens living abroad, to the IRS. FATCA subjects any FFI that does not report accounts of U.S. persons to the IRS (or to the government of the FFI’s country for transmission to the IRS through Intergovernmental Agreements) to a 3% withholding tax on all U.S. investments. FATCA also requires U.S. citizens with foreign assets of over $50,000 to report on these assets annually in a separate tax form.
This legislation has imposed serious burdens for Americans working or living abroad. Since many FFIs seek to avoid these onerous reporting requirements, FFIs are now closing accounts of U.S. citizens and denying services to U.S. citizens who simply want to open a bank account. Therefore, I share your concern about the unfortunate side-effects of this bill.
In addition to these unfortunate side-effects, lawsuits have claimed that (1) FATCA forces the Treasury Department to violate its Treaty Power because the Intergovernmental Agreements were never sent to the Senate for advice and consent pursuant to the Treaty Clause of the U.S. Constitution, and (2) that FATCA is unconstitutional under the eighth and fourth amendments (as an excessive fine, and a search and seizure). Whether the law survives a constitutional challenge remains to be seen.
As a member of the International Tax Working Group in the Senate Finance Committee, I will be certain to keep your opposition to FATCA in mind as we proceed with reforming our tax code, as I believe we must. In updating a tax code that hasn’t been comprehensively reformed since 1986, it is always helpful to hear from constituents what works, and what doesn’t, so I appreciate your input.
Thank you again for taking the time to contact my office. I am honored to represent you and great state of Ohio, and I appreciate your input on this important issue. For more information on my recent work in the Senate, you may visit my website at http://www.portman.senate.gov.
Sincerely,
Rob Portman
U.S. Senator
Polly says
June 8, 2015 at 11:17 am
@Jakdac
“Unfortunate” side effects? Try “devastating”. The minute I read that adjective, I knew it doesn’t matter much to him. They think this is not grave. It is just….simply….”unfortunate” ( but something that needs to be done anyway….?)
unfortunate
un·for·tu·nate
ˌənˈfôrCH(ə)nət/
adjective
1.
having or marked by bad fortune; unlucky.
“the unfortunate Cunningham was fired”
synonyms: unlucky, hapless, jinxed, out of luck, luckless, wretched, miserable, forlorn, poor, pitiful; informaldown on one’s luck
“unfortunate people”
noun
1.
a person who suffers bad fortune.
Congressional Research Service produced a report on “Reform of U.S. International Taxation”
http://www.fas.org/sgp/crs/misc/RL34115.pdf
No mention whatsoever of individual tax issues; solely focused on corporate tax. If this is all that the Senate Finance Committee is thinking about, it’s not a good sign for carbon-based life forms
(Hat tip: Taxprof Blog)
She has put out other documents pre Senate Finance Committee http://fpc.state.gov/documents/organization/155057.pdf
BUT never hurts to ask
jgravelle@crs.loc.gov
The report (Reform of U.S. International Taxation: Alternatives Jane G. Gravelle Senior Specialist in Economic Policy June 3, 2015) does not seem to cover issues for expat individuals
Will there be a report forthcoming regarding the issues expats as individuals have in regard to residency based taxation ?
Cheers.
Jak Dac
@ JakDac — In the letter you posted from Sen. Portman on June 8, did it really say 3% for FATCA witholding, or is that a typo?
“FATCA subjects any FFI that does not report accounts of U.S. persons to the IRS (or to the government of the FFI’s country for transmission to the IRS through Intergovernmental Agreements) to a 3% withholding tax on all U.S. investments.”
These letters are written by staff, and theoretically read and OK’d by the person signing. Much of the letter tells you what you already know. So what does he himself actually think or feel? “I share your concern” starts off OK, but use of the term “unfortunate side-effects” certainly doesn’t impress. I can’t picture anyone writing to tell him about concerns with some “unfortunate side-effects”!
Double checked states
3% withholding tax on all U.S. investments.
I thought the penalty for a FFI not reporting was a 30% noncompliance fee on all US derived income?
30%, and not just on U.S. investments. I think it’s troubling when a letter from a Co-Chair of the International Tax Working Group isn’t correct on things pertaining to international tax issues, even if that 3% is a typo on their part.
Perhaps it is 30% witholdings on any FFI (excludes US banks) who are not FATCA compliant.
What is the difference between these?
“FATCA subjects any FFI that does not report accounts of U.S. persons to the IRS to a 3% withholding tax on all U.S. investments.”
And
Perhaps it is 30% witholdings on any FFI (excludes US banks) who are not FATCA compliant.
27%
THe Letter from Portman is the strongest I have ever seen. (sadly)
Portman had sent a letter of support to Reps Overseas. He has been fully briefed and knows that it is in the interest of 8.7 million.
Most of the Reps are severely held back in their words in fear of the memers such as the Young Turd.
@Duke of Devin
So, is it 30% or 3%?