What an idiot -does he have any idea what is going on? #FBAR #FATCA #TransitionTax #GILTI doh……Former Hamilton school superintendent pleads guilty to forging documents to get his children U.S. citizenship https://t.co/2dc9RKkViK via @torontostar
— Tricia Moon
Just a little something likely to amuse most Brockers
Really, it boggles the mind……..would appear nothing further reached the Consulate.
Those kids don’t know how lucky they are!
Interested to know whether the comments to French version of this @LizT1 article on the @USTransitionTax are different in tone than the English version: "Nouveau coup dur pour les résidents canadiens frappés par l'impôt de Trump" https://t.co/xsvTqtE8t5
— U.S. Citizen Abroad (@USCitizenAbroad) August 15, 2018
Reference to the English version of Elizabeth Thompson’s recent article on the U.S. Transition Tax was posted here. A person in Europe found the French version and forwarded it.
The French version has far fewer comments. But, I thought it would be interesting to perhaps do a bit of translation and see if they are as ridiculous as the majority of the comments on the English version.
Can't make "Live Toronto Event" to discuss end of @citizenshiptax https://t.co/pk6PVMNAKc? @Expatriationlaw interviews @SolomonYue LIVE: Friday Aug. 17 – 11:00 a.m. EST (Toronto) – VIEW it @thatchannel anywhere in the world! Tweet questions to @expatriationlaw in advance and RT! pic.twitter.com/bWFBBPv2Zz
— John Richardson – lawyer for "U.S. persons" abroad (@ExpatriationLaw) August 14, 2018
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
— Elizabeth Thompson (@LizT1) August 13, 2018
Another good article by the Elizabeth Thompson. It would appear that compliance with the “transition tax” is getting more and more difficult. The article begins with:
Thousands of Canadian residents hit hard by a retroactive tax signed into law by U.S. President Donald Trump have been dealt another blow, CBC News has learned.
Newly proposed regulations issued by the U.S. Treasury Department and the Internal Revenue Service threaten to increase their tax hit.
“You have to almost empty out your company and pay a lot of Canadian tax to avoid the U.S. tax,” said Kevyn Nightingale, a partner with the accounting firm MNP.
Interestingly, Ms. Thompson does reference the Solomon Yue American Chamber of Commerce meeting this Thursday August 16 in Toronto.
The comments seem less vicious today (at least so far).
An excerpt from “Identity theft in a #FATCA and #CRS World: The Role Of the U.S. Social Security Number” cross-posted from citizenshipsolutions.ca
This morning I received a fascinating message from a third party who writes:
IDENTITY THEFT, SSN & CRS
With the creation of Social Security in the US after World War II, Americans were issued individual social security numbers for retirement contribution tracking and disbursement purposes. Over time, by convenience and not by design, these social security numbers morphed into national tax ID numbers and the only identification number used in all aspects of Americans’ lives — from getting a driver’s license, buying a car, enrolling in university, opening a bank account, buying health insurance and soon. The list is endless.
The IRS and the Social Security Administration regularly entreat Americans to be careful about to whom, why, and how they reveal their precious SSN. Indeed, identity theft is the fastest growing industry in the US and rarely a day goes by without yet another data breach making headline news (need a list??) or a warning of fake IRS forms (such as the W8-Ben) enticing people to provide private data never asked on those forms.
Europe, on the other hand, provides its nationals with distinct tax ID numbers. No single identifying number can provide access to and take control of all aspects of an individual’s life.
In comes FATCA and CRS.
And what does the IRS and USG compel us to do? Fork over our SSN to FFIs and foreign governments — and their myriad service providers, data bases and servers.
Aside from this requirement’s dubious legality under GDPR, having to fork over one’s SSN is akin to leaving your front door open with a big “Welcome” sign while you go off on holiday.
Americans get to choose between the risk of privacy violations and identity theft and the ability to bank. If they can find a bank that accepts them that is — not one online European bank will accept a client with the slightest whiff of “American-ness”, even if said client is a dual national. Discrimination anyone?
It’s not as if there were no other options and the USG had no CHOICE but to put its citizens at risk. The IRS could issue TIN numbers separate from SSN. Americans abroad could prove their identity with a passport number and show their compliance with redacted FBARs and 8938s. Most FFIs in Europe are not even aware that our SSN is the unique number that controls our lives and understand the Solomon’s dilemma once it is explained to them. Yet they cannot do anything about it, they too are victims of the IRS’ extra-territorial reach.
While we wait for various efforts to reform or repeal FATCA to bear fruit, solving this dangerous conundrum should be simple and SSN numbers must no longer be used.
The U.S. tax compliance industry regards FATCA as “The Gift That Keeps On Giving!”
For Americans Abroad, FATCA is “The Nightmare That Just Keeps Happening!
In addition the meeting mentioned below, we would like to have a second, more informal program for expats and their families and friends. This format would be a more intimate question and answer which will be focused on individuals subject to the CBT regime. This would take place on Sunday, August 12, from 2:00 – 4:00 pm on the U of T campus. We need a confirmed number of individuals before booking a room. If you are interested, please email nobledreamer16 at gmail dot com Cost: $20
A LIGHT AT THE END OF THE TUNNEL OR ANOTHER ONCOMING TRAIN: THE POSSIBLE END OF U.S. CITIZENSHIP-BASED TAXATION
If you are an American citizen residing and doing business in Canada, you bear the pain of the heavy tax burden endured by all U.S. citizens due to the fact that the U.S. is the only major country that imposes worldwide taxation on its citizens no matter whether they live in the U.S. or in another country. In addition, the U.S. imposes significant penalty laden reporting requirements on U.S. citizens living in Canada and abroad.
Change is a possibility.
Did you know that there is a possibility that the U.S. Congress may introduce, debate and vote upon a bill that may ease this worldwide taxation burden on U.S. citizens living and working in Canada? This bill would enact ‘Territorial Taxation for Individuals (TTFI)’. It is a tax cut for 9 million overseas Americans by ending double taxation.
Solomon Yue, CEO of Republicans Overseas has been involved with drafting the TTFI bill. Mr. Yue, who is currently working with AmChams throughout the world, will present publicly shareable information about the TTFI bill, and discuss its progress as it journeys through the legislative process. He will be encouraging AmCham Canada to lend its support in the global effort to encourage Congress to move forward with this legislation.
Louisianans – AMERICANS ABROAD NEED YOU! The US 2017 reform created two new and very complex taxes aimed at US companies like Google/Apple. By congressional mistake these taxes hit Americans with tiny businesses abroad who run their businesses through a company. For example, an Americans in Paris who runs a tiny restaurant or CPA office via a French company. Such small business owner is hammered by these two taxes by mistake. Senator Cassidy of Louisiana has listened to the plea of such Americans abroad and is willing to help. He wants his staff to speak to a few Louisianans in this position. If you are impacted or know a Louisianan who is, I CAN NOT TELL YOU KNOW VALUABLE THIS IS TO OUR EFFORT. If you or another expat Louisianan you know has a small business, PLEASE HAVE THEM CONTACT ME AT firstname.lastname@example.org
Yesterday at 3:58 PM
EXPAT FROM LOUISIANA? YOU CAN HELP get Americans abroad exempted from the Repatriation/GILTI taxes. If you are an expat from Louisiana and impacted by these taxes, or know someone that is, pls contact me. Thx
— U.S. Expat Canada (@USExpatCanada) July 27, 2018
From Global Advocate for the American Overseas, Keith Redmond is this important message:
ATTENTION AMERICANS OVERSEAS!
There is a SERIOUS bi-partisan push for an updated FATCA hearing to address the sharing of personal financial data and the lock-out of Americans overseas from foreign financial institutions (i.e. their local banks).
As a result of Suzanne Iclef Herman’s hard work and tenacity in establishing and cultivating a relationship with her Congressman and his staff, we have succeeded in building bi-partisan momentum in an updated FATCA hearing. Suzanne requested to Congressman Posey’s office that I get involved in order to have as many Americans overseas as possible contact their respective Congressmen/Congresswomen.
The attached letter has been sent to Members of Congress (MOC) in a bi-partisan effort to have the House Ways & Means Committee hold another FATCA hearing. In conjunction with the request, MOCs have been sent a letter (in the same aforementioned attachment) which each MOC can send to House Ways & Means Committee showing their support for another hearing. Americans overseas are asked to write their Congressmen/Congresswomen to sign the letter.
Therefore, I am requesting that you contact your Congressman/Congresswoman via e-mail and/or fax AND FOLLOW-UP WITH A TELEPHONE CALL.
I have attached the THREE STEPS to be taken in order to contact your representative via e-mail as well as the link to find your representative’s fax number. Please follow the instructions.
Patricia Moon posted part I:
In Part II, the author argues (among other things) that FATCA is nothing more than a continuation of the “FBAR Fundraiser“.
Here we go …
Reposted with permission of Tax Connections.
Written by Gary Heald | Posted in FATCA • Gary Heald
In FACTA Part I, I argued that in light of the Joint Committee on Taxation (JCTX-5-10), Congress failed to engage in the necessary due-diligence to reasonably relate FATCA to the collection of tax revenue lost through “tax schemes” and “tax evasion” by U.S. persons with foreign financial institution accounts. Congress operates as America’s legislative fact-finder. They are charged with determining whether relevant and reliable evidence negates the underlying policy-purpose for a particular law, when presented with evidence to that effect. JCTX-5-10 was directly relevant because it offered a direct answer to the question of “how much” FATCA revenue. As for reliability, the Joint Committee on Taxation produces some of the most reliable evidence on The Hill, and this was no exception to that general rule. Congress knew FATCA would collect less than one-half of one-percent of what was sworn to during the Ways and Means hearing estimates. They also knew that even after ten-years, FATCA would not fully-fund the Hiring Incentives To Restore Employment (HIRE) Act (and that does not take into account the costs for implementation and renewed requests for additional expansion and implementation funding).
In Part II, I want to touch on three related areas of concern. First, and as has been discussed by more than a few other people, the $10B that the IRS collected between 2009 and 2016 included a disproportionately low amount of tax revenue coupled with a substantial amount of penalties associated with FBAR. Further, alongside a disproportionate amount of penalties, FATCA and Offshore Voluntary Disclosure Programs (OVDP) illegally filled the gap left by Qualified Intermediaries (QI) pooling, forcing foreign financial institutions to report on the account value of U.S. persons in violation of their own law, and if reproduced domestically, in violation of our own laws as well. Finally, FATCA has become a continuation of the IRS war on FBAR perpetrated by Treasury’s Financial Crimes Enforcement Network (FinCEN), federal law enforcement and the intelligence community all of which sought to curtail the use of secret foreign bank accounts for illegal purposes (e.g., tax evasion as well as securities manipulation, insider trading, evasion of Federal Reserve margin limitations, storing and laundering funds from illegal activities, and acquiring control of U.S. industries without detection by the SEC)  by establishing a worldwide-financial-industry informant system.