— 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
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!