Category Archives: Issues regarding US persons abroad
More from Sophie IntVeld and the ongoing EU attack on Accidental Americans
From @SophieintVeld pic.twitter.com/nsqirKOzIB
— U.S. Citizen Abroad (@USCitizenAbroad) August 7, 2020
As per a request from Tim Smyth …
American Citizens Abroad AKA @ACAVoice Deserves Credit For Keeping The Focus On Ending @CitizenshipTax
https://t.co/eHTwI1FtOW pic.twitter.com/qTnTOcuka8
— U.S. Citizen Abroad (@USCitizenAbroad) August 6, 2020
Kudos to American Citizens Abroad for producing a superb article demonstrating:
1. The harm that citizenship-based taxation does to individual Americans abroad; and
2. Demonstrating that the only way to cease harming Americans abroad is to end citizenship-based taxation.
This is seriously good article that puts much of the harm in the TCJA into historical perspective. Although the article makes it clear that much of the damage can be fixed through Treasury regulations (including the two which have been recently been the topic of discussion), the article “Keeps The Faith”, by reminding us that citizenship-based taxation must end! ACA deserves credit for NOT wavering from that position. Given that the Democratic Party has failed to include ending citizenship-based taxation in their platform and the Republican Party appears to not have recently reconsidered the issue, it appears that proponents of ending US citizenship-based taxation are fewer than ever. From that perspective, ACA deserves a special thanks. (It is also significant and tragic that Representative George Holding who pioneered the ONLY serious attempt to fix CBT is retiring. There is no evidence that his 2018 Bill will be introduced again.)
Milestone in FATCA abuse: International Adviser claims “Dutch Americans” could be branded as tax evaders under Netherlands law
How cool is this? Dutch-Americans could be classified as ‘tax evaders’ IN THE NETHERLANDS!! https://t.co/zTCdzfxFaN pic.twitter.com/NwIdeLkwpq
— U.S. Citizen Abroad (@USCitizenAbroad) August 4, 2020
It’s hard to know whether the story referenced in the above tweet is true or not. But, assuming it’s true, this really would represent a milestone in the extra-territorial application of US law.
Think of this way …
So far, the United States of America – the great “citadel of freedom of justice” – has managed to:
1. Export FATCA to the rest of the world
2. Gotten the world to agree that, the United States, and the United States alone determines which of the residents of other countries are to be considered to be “US persons” for FATCA purposes.
3. Forced the non-US banks to pay for the witch hunt and general FATCA inquisition
4. Expand the US tax base into other countries (think of the OMG moment – am I really US taxpayer property?)
5. By expanding the US tax base into other countries manage to extract capital from other countries (think Exit Tax, Transition Tax, GILTI, etc.)
6. Solidify the status of the the United States of America as the world’s number one tax haven (remember since the USA hasn’t signed on to the CRS): “What goes on in Vegas stays in Vegas” and “What goes on in Wyoming (and other states) stays in Wyoming.”
But the best has now finally arrived … Truly amazing.
Assuming that this article is true, apparently now, the Netherlands may be willing to deem Accidental Americans (the one’s who accidentally escaped from America) as tax evaders in the Netherlands!!!! This is amazing. Think of it, now the United States doesn’t even have to charge these criminal “accidental Americans”. All they need do is:
A. Decree that a violation of US law in the Netherlands is actually a violation of the law of the Netherlands; and
B. Get the Netherlands to deal with them under the Dutch justice system.
Fantastic! One more expense that the United States need not pay. In the event that the “accidentals” are incarcerated (for disobeying the Homeland), the Netherlands can pay that cost too.
Russia, China and all other totalitarian regimes should really take note. Nobody does this better than America!
Somebody has to be demonized: “The Criminalization of the American Emigrant by Laura Snyder”
Good article (which has potential to challenge the basic assumptions of Homelander tax and compliance industry + @elisejosanbean) @TAPInternation: 1. explains the "Criminalization Of American #Emigrants 2. Explains that #expats are not really criminals https://t.co/dnAfl0Cv6a pic.twitter.com/WWBi748Or4
— U.S. Citizen Abroad (@USCitizenAbroad) August 2, 2020
The above tweet references an article published on June 29, 2020 in Tax Notes. In the article Laura Snyder describes many of the injustices inflicted on those who have the courage to leave the United States. The included list of injustices is well known. In addition the article includes a discussion of Professor Elise Bean’s claim that somehow offshore tax evasion is (or was) costing the United States 100 billion dollars annually. Ms. Snyder analyzes and ultimately explains the dubious validity of that claim. (That dubious claim did NOT stop Professor Bean from repeating the same malarky at the April 2017 Meadows hearing into FATCA.)
Ms. Snyder’s article includes:
The #FATCA IGAs have no reciprocity. The Anne Sacoolas case suggests that extradition treaties may not be reciprocal either
Update July 27, 2020 …
July 26, 2020 Those seeking #Justice4Harry will be interested to see @RaddSeiger on the @GeorgeGalloway show …https://t.co/XP8LWNCGj3
— U.S. Citizen Abroad (@USCitizenAbroad) July 28, 2020
and now back to the post as it was originally written …
________________________________________________________________
#HarryDunn’s mother Charlotte speaking to the American nation last night with a very clear simple message. Do the right thing. https://t.co/hAuprCaVPP
— Radd Seiger (@RaddSeiger) July 25, 2020
The last year has featured a number of posts about the role that extradition treaties play in the modern world. Interestingly most (if not all) of the posts have discussed how the United States is using extradition treaties to assert jurisdiction over individuals, who did not commit crimes while present in the United States. The United States is using extradition treaties to “capture” individuals under the following circumstances:
Federal Court Of Canada Rules That Agreement Between Canada And The United States Governing Refugee Claims Violates Canadian Charter Of Rights
Introduction: So, what’s an agreement between Canada and the United States have to do with the FATCA IGAs?
Judicial recognition that the USA – a country where incarceration is almost a certainty – is simply not a safe country to return a refugee to. "Canada's asylum agreement with the U.S. infringes on Charter, says Federal Court | CBC News" https://t.co/xPkBrir87X
— U.S. Citizen Abroad (@USCitizenAbroad) July 22, 2020
Well, both the Canada US Safe Third Party Agreement and the Canada US FATCA IGA are agreements entered into between the governments of Canada and the United States. In both cases, the Federal Court of Canada has been asked to rule on whether the agreements violate Canada’s Charter of Rights. On July 22, 2019, Madam Justice MacTavish of the Federal Court Of Canada (as she then was) ruled that the FATCA IGA (and conforming legislation) did NOT violate Canada’s Charter Of Rights (discussion on Brock here). On July 22, 2020 (exactly one year later), Madam Justice McDonald of the Federal Court Of Appeal ruled that the Canada US Safe Third Party Agreement did violate Canada’s Charter Of Rights.
It is important to understand in what respect these two cases are the same in what respects they are different. This post will focus on the challenge to the Canada US Safe Third Party Agreement.
I would appreciate any thoughts/comments you might have the similarities and differences.
Understanding the Canada US Safe Third Party Agreement
“US Persons” targeted by FATCA are themselves the biggest impediment to Jenny’s anti-FATCA advocacy
The FATCA/AEOI Papers: Mishcon publishes research trove, unearthed as part of crowd-funded UK FATCA case https://t.co/NQRwGz1QDc
— U.S. Citizen Abroad (@USCitizenAbroad) July 13, 2020
Jenny’s UK based anti-FATCA lawsuit has been discussed on Brock here and here.
Americans abroad, Accidental Americans and American emigrants (collectively referred to as “US Persons”) are the targets of FATCA and US citizenship-based taxation. They did NOT create the laws. But, they are now the single biggest obstacle to achieving success in the courts, US Congress, US Treasury and engaging the interest of other governments. To put it simply: the very group that Jenny is trying to help is working (sometimes consciously and sometimes unconsciously) against her.
Here are the reasons why:
When it comes to definitions of tax residency, to compare China to the United States, is a gross insult to China
"CBT or not?" asks Barbara at the Issac Brock Society: China extends tax dragnet, with state employees in Hong Kong first to suffer https://t.co/OQoKGsGm5e via @scmpnews
— U.S. Citizen Abroad (@USCitizenAbroad) July 10, 2020
Introduction and background
In 2015, Eric contributed a brilliant post to the Isaac Brock Society in which he concluded that:
No, China does not have have citizenship-based taxation
I highly recommend the post and the comments. Eric concludes with an interesting summary of what citizenship-based taxation is and what citizenship-based taxation is not.
China takes a cue from USA
We have discussed how the USA’s extraterritorial laws are a bad precedent, precisely because one day in the future, other powers may seek to imitate the USA. A new law in China does this. But according to the author, Mary Hui, China’s extraterritorial legal ambitions are unprecedented:
The new law is also expansive in another unprecedented way, even by the standards of China’s opaque legal system: it covers not just Hong Kong residents, but also anyone living abroad. That means foreign nationals, the Hong Kong diaspora, and Hong Kongers studying or working abroad.
The new law is “asserting extraterritorial jurisdiction over every person on the planet,” wrote Donald Clarke, a professor of law at George Washington University. Alarmingly, the law has an even broader reach than mainland Chinese criminal law, which only holds a foreigner liable for a crime committed outside of China if the effect of that crime occurs in China. Hong Kong’s nationals security law has no such limitation, Clarke explained. “If you’ve ever said anything that might offend the [Chinese] or Hong Kong authorities, stay out of Hong Kong.”
Apparently, Ms. Hui hasn’t heard of FATCA.
I had suggested that China would create CHATCA, but I guess they decided to start with a law making it illegal for anyone to criticize the government of China (which I am not doing, if anyone asks).
