Canada has raised the issue of the impact of the repatriation tax on Canadian residents with the U.S. government, says Finance Minister Bill Morneau https://t.co/1s3puNhyyI #cdnpoli #tax #repatriationtax #taxreform #politics
— Elizabeth Thompson (@LizT1) August 14, 2018
Following up from yesterday’s CBC article by Elizabeth Thompson, CBC has today published a shorter article describing Mr. Morneau’s response or non-response (whatever the case may be) to the “transition tax”. Her article begins:
The Canadian government is talking to the U.S. government about the impact a retroactive tax signed into law by U.S. President Donald Trump is having north of the border, Finance Minister Bill Morneau revealed Monday.
Speaking to reporters in Windsor, Ontario, Morneau said he is aware that some of the U.S. government’s tax changes affect Canadian residents with U.S. or dual citizenship.
It is, at the end of the day, going to be up to them to manage their own tax code.
– Finance Minister Bill Morneau
“We’re continuing to consult with Americans to make sure that we fully represent the challenges that these changes have made for Americans or dual citizens living in Canada,” Morneau said. “That’s an ongoing process. We certainly hope that we can make progress.”
Here is Mr. Morneau in the Q and A:
Finance Minister Morneau responds to questions about the effect of the @USTransitionTax on Canadian residents – he does acknowledge that this impacts those with @dualcitizenship https://t.co/QSETrawVqr
— U.S. Citizen Abroad (@USCitizenAbroad) August 14, 2018
The comments (at least so far) reflect the difficulty of understanding the issue.
Nevertheless, this is significant because it is now clear that the Trudeau Government is well aware of the “transition/repatriation tax” and its effect on Canadians. This is good news.
And across the ocean and and the question of legislative change …
The following message appeared from Lawyer Monte Silver:
Americans Abroad with small businesses subject to Repatriation/GILTI taxes:
To get an exemption for American small businesses abroad from the Repatriation tax, last month we focused on Senator Cassidy of Louisiana who volunteered to assist. It worked and we have a draft bill in hand.
Now we focus on Ohio Senator Portman for a bill exempting us from GILTI. Portman responded and wants to speak to Americans abroad impacted by GILTI. If you or someone you know owns a small business abroad and is impacted by GILTI – or the Repatriation tax, IT IS URGENT THAT YOU CONTACT ME BY PRIVATE MESSAGE OR AT MS@SILVERCOLAW.COM
I am very grateful to Elizabeth Thompson for covering this issue to the extent she has. I was told by her colleague, Evan Dyer, who interviewed my husband and me on the National that they were going to stay on the story. It seems the CBC is living up to its promise.
Monte Silver has been extremely effective in getting heard by US Treasury, the IRS and now US lawmakers. He was instrumental in getting Treasury to delay the Transition tax payment to next June for many of us who are affected by it. His call to action should be taken seriously.
@BB, thank you for pursuing this in the US and in Canada, and for agreeing to be interviewed and persistence in bringing this to national and international attention. Your efforts will be benefiting so many who may still not know about this, as well as many who don’t dare to come forward.
I have forwarded this and other coverage to my MP FWIW.
I wish the CBC would ask the Finance Minister Morneau if he’d tell Eritrea the same thing re their extraterritorial tax claims that he said of these US extraterritorial claims to completely Canadian generated, owned and sited assets;
“…”It is, at the end of the day, going to be up to them to manage their own tax code.””
Or is that only the stock answer he hides behind because it is the big bad US that we want other things from?
Too bad we’re not softwood lumber or steel. Or oil. Then maybe the Canadian taxpayers and business owners facing US extraterritorial predations could expect some real action from our own government to protect Canadians and their Canadian assets. Or are ordinary Canadians and their savings not of sufficient ‘national interest’ since they’re not industry sectors with lobbyists?
Thank you for your encouraging words. Like many, I just put one foot in front of the other and hope for the best.
If you aren’t part of the solution, shut up and get out of the way of those who want to find one:
I want to strangle that man, I really do. Genuinely, no kidding.
Then you want to strangle me too.
Isn’t it unlikely that Morneau will put up much of a fight considering this is the same money that the Liberal government wanted to tax earlier in the year? If I remember correctly, it was only the coordinated fight of the accountants, doctors and lawyers who keep investments in their small businesses that kept them from doing so.
In my opinion, except for being retroactive and possibly the issue of the tax credit, the transition tax is no different from the US taxing our TFSAs (for those of us that risk holding them), principal residences or lotto winnings. None of which the Canadian government is worried about.
@BB- Please explain?
I agree with John. If you’re not part of the effort don’t get in the way.
did you mean you wanted to strangle Morneau?
@ Yes, of course. The man who continues to refer to Canadians in Canada as Americans FIRST. I have no idea how anyone who has seen me post here over the years could think I was talking about John.
My apologies for the misunderstanding.
Thanks for helping clear this up.
Hopefully we will win without a lawsuit. However, the Treasury has violated a few federal laws in issuing the proposed 965 rules and on of the laws grants us judicial review. So we will wait and see what Treasury does and then decide. Be optimistic.