FATCA and Australia – Part 1 of 2
January 2020: This thread continues at FATCA and Australia – Part 2 of 2.
Let’s Fix the Australia/US Tax Treaty! The Australia/US tax treaty needs urgent revision to prevent double taxation. Get involved at www.FixTheTaxTreaty.org
Posts on The Isaac Brock Society website concerning FATCA and Australia
For articles on other websites, see Media and Blog Articles
For general discussion of FATCA, see FATCA Discussion Thread
For links to some websites and contact info (government, organisations, tax information), see Australia Information Links
25: John Richardson and Karen Alpert Session in Brisbane Australia Oct 25, 2018
August 2018
01: U.S., U.K., Canada, Australia and Netherlands form international tax enforcement group
January 2018
July 2017
March 2017
13: What Lessons Can Be Learned from the Sad Stories of “IRS Compliant” Australians Shaun and Mary?
November 2016
30: “Solving U.S. Citizenship Problems” – Online January 9, 2017 (Australia)
August 2016
25: Let’s Fix the Australia/US Tax Treaty!
May 2016
15: Australia: Dealing with Superannuation
February 2016
19: #Australia funds America’s #FATCA #Ethnic Identification System
September 2012
27: Last Day to make a FATCA submission to the Australian Govt
August 2012
28: Australian Government wants YOU to tell them what to do about FATCA
July 2012
20: Australian Financial Services Council lobbies Washington for FATCA exemption
Interesting comments
http://isaacbrocksociety.ca/media-and-blog-articles-open-for-comments-part-2-of-2/comment-page-44/#comments
I am thinking the IRS will not come after you because if they did the numbers would be huge and the outcry large. They can just nibble at high end accounts. Gradually lowering the threshold so as not to ensnare too many people at once.
I refer to it as passive enforcement as to not stir the pot too much and blow the IRS budget.
Maybe I’m late to the “party”, but just now I wrote to The Treasurer, The Assistant Treasurer and the Assistant Minister about the status of the 2006 US-Australia Model Tax Treaty, asking for a status update. I explained, that as an Australian citizen with an American birthplace, my superannuation is taxed by the US and the capital gains on the sale of my primary residence will be taxed as well — hardly fair. I wonder if I will get any response.
Meanwhile, I am on the rollercoaster ride from hell, STILL wondering if I should put a target on my back and delve into Streamlined, or put it off some more and hide. Yesterday I was settled on the former, today it’s the latter.
As per previous post if anyone else wants to push the treaty
Emails to send your comments to regarding Australian/US tax Treaty
I have touched base with some of these people and believe they want to help but they need to state the “masses are asking”
Australian Tax Treaty emails
Greg.Wood@treasury.gov.au,lyn.redman@treasury.gov.au, henry.addison@treasury.gov.au, taxtreatiesunit_consultation@treasury.gov.au
Australian treasury (Josh still may be interested)
treasurerdlo@treasury.gov.au,josh.frydenberg.mp@aph.gov.au,SBMinister@treasury.gov.au, J.Hockey.MP@aph.gov.au, kelly.odwyer.mp@aph.gov.au
Australian AMCHAM CEO NielsMarquardt@amcham.com.au
US head re Tax Treaties Henry.Louie@treasury.gov
US Embassy Canberra MurrayMD@state.gov
Australian ambassador in US Kim.Beazley@dfat.gov.au
AND any media programme you watch or paper you read (Google)
Thus as a mass BCC
Greg.Wood@treasury.gov.au,lyn.redman@treasury.gov.au,henry.addison@treasury.gov.au,taxtreatiesunit_consultation@treasury.gov.au,treasurerdlo@treasury.gov.au,josh.frydenberg.mp@aph.gov.au,SBMinister@treasury.gov.au, J.Hockey.MP@aph.gov.au,kelly.odwyer.mp@aph.gov.au,NielsMarquardt@amcham.com.au,Henry.Louie@treasury.gov,Kim.Beazley@dfat.gov.au,MurrayMD@state.gov
Luise.McCulloch@treasury.gov.au (02) 6263 1120 Boss of International Tax and Treaties Division
Greg Wood (02) 6263 3329
He seems like a nice guy and the other staff also seem sympathetic
The more calls they receive the more they can inform treasury regarding the concerns many US/AU duals have
@JakDac – Just sent out some more! Keepin’ me busy.
Submissions from Australia to the Senate Finance Committee Workgroup on International Tax Reform (among the hundreds from overseas ignored by the committee).
http://www.finance.senate.gov/legislation/details/?id=34184F67-5056-A032-52C8-0A4960018D92
Go to the page. Press the Control Key (Windows), and at the same time the F key for find. Enter name to find.
Keith Weeks
Bryan Dickson
Wendy Gaylord
AmCham
James Carney
Joseph Warren Rao IV
The Association of Superannuation Funds of Australia Limited
Carl Greenstreet
Carol Duval
Harold Melnick
Jeremy Bluhm
Joe Citizen
Julianne Rogers
Martha Henderson
Mary Moore
Susan McMahon
[Removed at request of sender yet posted here] http://isaacbrocksociety.ca/fatca-and-australia/comment-page-2/#comment-6095532
14 individuals: 12 mention super, 11 complexity, 1 disability
@ JC
People can also use Barbara’s excellent and easy to search compilation of the SFC submissions.
http://fatca.eu.pn/
You will also see 4 more from Jak Dac
NOT my submissions but included pictorial and previous important official documentation from Australian representatives (AMCHAM and Superannuation)
I am very glad the Senators were able to view this material and it is now on their radar
Fits the bill for US. The timing could be excellent as the PM would probably like to show he is a fair guy (remember he is a businessman and may agree)
Should we get a great letter writing person her on our Australian forum (ONE comes to mind) to post a letter we can all copy and paste plus add any other information and email / tweet / Facebook / NEWS media etc to all in Aussie
Maybe focus on a quick semi solution for us the 2006 model tax treaty immediate signing along with our feelings on CBT
Call for Letters to Our New Prime Minister
by MuzzledNoMore
“We are here; we are not going away; as Canadians we expect the protection of the Canadian government.” This is what the new government in Ottawa needs to hear from us in less than a week’s time. If (God help us) we still have the old prime minister, he needs to hear from us … again.
Let’s muster together our letter-writing forces and fill the incoming prime minister’s inbox on his first day in office. Our issue needs to be front and centre in his mind, not on the back-burner. We have languished there long enough.
The new prime minister needs to be reminded that under the terms of the FATCA IGA (p. 18) signed by the Canadian and US governments the Agreement is to undergo further consultation between the parties before the end of 2016. He needs to know that we expect him to request certain changes to the Agreement to bring it into line with what the Canadian Charter of Rights and Freedoms demands. Reference to birthplace as an acceptable indicium of US citizenship needs to be removed as well as reference to the reporting of account balances. Only an account’s earnings are relevant to income taxation and therefore it is only earnings that should be reported. These are but a couple of examples from the long list of grievances that we hold against the FATCA IGA.
It would have been easier if these things had been hammered out during the negotiations with the United States before the IGA was signed in the first place but this would have required the exercise of statesmanship of an order sorely lacking in the Conservative government. Instead of achieving a workable compromise we got complete and total acquiescence. We need to respectfully call on the new prime minister to now be that expert statesman who is needed to reverse the damage done by such a wholesale capitulation to unreasonable foreign demands.
Let’s make each and every one of our voices heard once again before our new PM is barely seated at his desk.
MuzzledNoMore | October 13, 2015 at 7:10 pm | Categories: Issues regarding US persons abroad | URL: http://wp.me/p3afn8-bvz
Comment See all comments
@JakDac I am on the letter case. I have too many changes each day to the draft at this point. Ask: 1) Initiate a Parliamentary Inquiry 2) Request the ATO to report to Parliament on: Australia – US Tax Treaty Gaps impacting Australian residents, 3) Refer the matter to the Australian Human Rights Commission. 4) Request the ATO to amend their misleading website information. In terms of target I am thinking more of independent Senator Xenophon.
@JC & JakDac — I am happy to be on the letter-writing campaign. Fire when ready.
One page MP letter now 3 pages plus 1 page footnote for suggested addition to ATO website. Getting there.
WOW Fait is strange
Our PM questioned re his Cayman Island funds
He said he has paid all Aussie tax so have we
How about an email effort to him re our plight and ask him to do he has the power.
He can make a public announcement regarding our unfair tax situation and pledge he shall strive to get the 2006 US Tax Treaty model signed immediately.
Hate phone auto text
A legal bombshell emerged. Last week, the European Court of Justice (ECJ), the highest judicial body of the European Union, invalidated an EU-US data exchange agreement.
http://www.nestmann.com/your-data-isnt-safe-in-the-usa?inf_contact_key=3f99e08f004ed93f90c3d245cdce15bc530bd8948002a8c48060bf69aba8bba7#.Vh5OY4E_7qA
@JakDac
This sounds very promising for us Europeans suffering from this Fatca madness. I’m sorry to hear about the recent data breach (sorry, information exchange) in Australia; I hope affected Aussies will sue the Government in due course…
Fatca Crushes Minnows, the Sharks Do Better
October 16, 2015
Anne Bilson From Sydney Australia leading this WSJ Opinion/Letters section
http://www.wsj.com/articles/fatca-crushes-minnows-the-sharks-do-better-1444941380
Accountant sent me this one, he consults with.
Uncle Sam and Chris the tax man are swapping stories . . . perhaps about you!
October 11, 2015
http://www.webbmartinconsulting.com.au/?utm_source=The+Assessment&utm_campaign=e1944d0d83-The_NEW_Assessment_Newsletter_October_2015&utm_medium=email&utm_term=0_4ef5882f06-e1944d0d83-267210649#!Uncle-Sam-and-Chris-the-tax-man-are-swapping-stories-perhaps-about-you/c7zf/561210610cf2a7bb74c71446
Update on our MP”s activities regarding our previous meeting.
I caught up with MP policy advisor (MP was sitting in the house) whilst in Canberra recently.
He has been a productive little busy bee and impressed me on his actions.
He visited the US consul in Perth. A few Consul staff are affected
by FATCA. They estimate 600 expats are in WA.
He has contacted and spoken in depth to Treasury and the ATO as well and is
writing formal letters to all of them regarding Aus duals whose lives are here in Australia based on our submission letters to them which I have posted in this forum.
He explained that the law is legislated and based on reciprocal exchange of information. I did comment to him I don’t believe US will reciprocate bank records back to ATO. He seems to think will happen, so we will see.
Verbally he said that Treasury doesn’t support and ATO won’t collect US taxes on IRS behalf.
He will request written responses from ATO and Treasury.
He said The Govt Treasury understands the issues we have raised to MP, and others in Australia
have been informing them of these issues. (Jakdac, JC probably)
I asked will Aust Govt rescue Aust duals if detained or arrested in the US on the proposed custom hold. He said would be tricky as we technically are still US citizens.
He recommended don’t go to US until this is settled, lie low and don’t declare
yourself to the US consulate, or obtain CLN and paint targets on your back.
We will get copies of the letters he’s sending and responses, and it will take awhile as
have to get the verbage correct and in line with policy.
Be interesting to see what the responses will be.
Alby, JC, Jak Dak and other Aussies,
Congratulations on the inroads you’ve been able to make to have some of your government representatives act on your behalf!
Yes it’s great to see our Aussie contingent kicking up some dust down under! Kudos!
@Alby – thank you so much for the update! Maybe there is some hope after all. Thank you to all the others who have been campaigning too. I’m hoping my “reminders” to the Treasury last week helped a tiny bit.
Just wondering….by “lie low and don’t paint targets on your back”, did that also mean don’t try to become compliant now?
@Sleepless
I forgot to state that in conversation with advisor we spoke on the 30,000 bank records recently sent to IRS which he was aware. This led into that we object to the US impeaching the sovereignty of Australia by allowing the US to tax Australian built capital assets via the US exit tax if we were to take that route of compliance. Advisor is aware that we have no US SSN or TIN due to migrating as children.
It was in this context that “lie low and don’t paint targets on on your back” was stated.
Here’s some cheerful IRS news that will keep @Sleepless awake at night
http://taxcontroversywatch.com/2015/10/16/internal-revenue-service-issues-stern-warning-to-non-compliant-taxpayers-with-offshore-holdings/#comments
My accountant stated this regarding the MP visit.
” Interesting to see what happens here . Good to here other US citizens are speaking to Govt .
If ATO will not collect taxes on US behalf then how could US proceed ?”