“Tax residence American style” AKA : Imposing “worldwide taxation” on those with @taxresidency in other countries
The issue of tax residence has gained so much attention since the “crackdown” on non-resident US Persons began in 2009. It is commonly understood that you pay taxes to the country/state/city-town that you reside in. (For an interesting comparison of differences between countries please see this incredible list compiled by the OECD). It simply does not occur to anyone that they would be required to pay taxes to a foreign government.
However, the United States claims jurisdiction due to citizenship. One does not even have to have touched foot in the U.S., according to U.S. law. Of course, due to the viciousness of the U.S. “FBAR Fundraiser” many people began to resist whether of anger or fear.
Not much has changed* , in spite of all the factors that have contributed to this debacle (and debacle it is, what could one expect when a country tries to take what is someone else’s, based on an idea of fake residence?).
For a detailed discussion concerning the determination of tax residence and related factors, please see here.
In a #FATCA and #CRS world: There's "residence", "#taxresidence" and "@taxresidency American style (where you reside in the USA even if you don't) – @1040Abroad and @Expatriationlaw: ‘Episode 2: "A Tax Residency Primer"- Tax, Residency and #TaxResidency": https://t.co/n2xjvHDhqy
— John Richardson – lawyer for "U.S. persons" abroad (@ExpatriationLaw) August 8, 2018
In this interview, John Richardson speaks with Olivier Wagner about tax residency and how a seemingly simple concept has become so terribly important in the 21st century.
At the 38 minute mark, we talk about how to describe U.S. “tax residence”.
The very idea of a tax residency rankles me. This idea that a branch of the federal government actually has to locate me for any reason reeks of central planning, which we all know has failed in every country where it has been tried.
I prefer to be a speck on this round ball and have little or no government keeping track of my every move and if I want to live in Canada or Mexico I have to tell Uncle Sam I left the U.S. and come April 15 those forms have to make a check in to central planning. It smacks of communism. I simply want to exist and have no person able to lay hands on me at their will or have any agreement outside the criminal justice system, so they will have me jumping thru hoops just to satisfy the whim of a bureaucrat.
The FairTax accomplishes all I wish for. Sure you still pay all taxes due when you buy things but if the new irs finds me it would be to no avail. Merchants collect all the taxes and send to the same place the send the sales taxes now. They keep 3 percent for their effort plus state and local taxes get added on and pass the rest on to the new IRS which are reduced to bean counters and leaves us alone.
Three votes above and all chose a different selection! 🙂
Still, we might call it different things, but we know what it is and it has to STOP.
Thanks to Mike for the A2A on the Quora question that I paged him about.
We could definitely use some more Brockers on Quora. It’s just John Richardson, Mike and myself on there right now. Or at least that’s all that I’ve seen.
“We could definitely use some more Brockers on Quora. It’s just John Richardson, Mike and myself on there right now. Or at least that’s all that I’ve seen.”
Nearly every answer I have written is a heads up about what the U.S. is doing with FATCA, what the U.S. tax code means to those who attempt to live outside of the USA, about the global discrimination etc etc….More that a million views.
If anyone is interested…
Circumvention of the AEoI: New OECD rules against fictional residences