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
@JakDac
Great letter to your MP!
Again Cheers to JC
@JakDac, I just read the link on the IRS emails and other correspondence.
Some people think I am a pretty smart guy having had too much education. But after reading that email chain with the IRS my head wants to explode!!!
They do not have a clue, admit same…..then how can THEY expect anyone to follow their foreign rules!!!
What this SHOULD all come down to? Did the person reasonably follow the tax rules of where they live and/or reasonably follow to the best they could the US rules.
These disclosure rules were written in 1973 to ferret out DRUG DEALERS!!!!!
So did my post get cut and pasted and sent to Tony? Hmm.
Called up
Letter has gone to treasurer
hopefully hear something in a week or so I will let you know BUT anyone can call (with or without callerid)
or email as I have been told there have been NO other queries
If you’d like to follow up with Senator Lindgren, she can be contacted on 3422 1990 or at senator.lindgren@aph.gov.au.
@JakDac – are you saying that Treasury have told you that “or email as I have been told there have been NO other queries” regarding our issue? They are flat out lying to you, if this is the case. I have the letter here to prove that they acknowledged my enquiry. I sent letters to THREE different departments within Treasury: The Treasurer, The Assistant Treasurer, and the Tax Treaty Unit. Why are they lying and saying they’ve never heard of this issue?
Senator Lindgren office has stated there have been NO other queries to them
If you’d like to follow up with Senator Lindgren, she can be contacted on 3422 1990 or at senator.lindgren@aph.gov.au.
If people and friends of the forum start asking questions I believe this would help very much
Re “I sent letters to THREE different departments within Treasury: The Treasurer, The Assistant Treasurer, and the Tax Treaty Unit”
I too from the contact page have sent MANY requests in the majority they seem not to have much “human response ”
I am waiting for the rubber to hit the road.
“letter here to prove”
Can you post it please ? (taking out personal details)
Tax Treaty Unit
They seem to know me by voice on phone contact now FINE people
We have to get the Top Guns to take off the leach
Sent one to Senator Lindgren here: https://twitter.com/JCDoubleTaxed/status/719477228199763968
Why is it that Senator Lindgren was suggested to approach for Parliamentary Inquiry? LNP, Senator 1 year. I try to see the committees she is on and to understand. Or, perhaps JakDac is a Queenslander, and Lindgren is a Senator for Queensland – that is all there is to it?
G’day All
Good to see some fine action on the MP front with @JakDac + @Karen recent MP visit and submission and utilizing all the compiled information and letters we have posted here last year. Thanks to JC for putting together the final letter.
An update
We have been contacting our MP last year, but nothing back after the Canberra visit. They were also in touch with Treasury and the ATO and were going to respond to us.
With Jak Dak visit, has inspired us to write another email to them with JakDaks attachments sent to them as per below to stir up the action again:
It has been some time since we met with you with FATCA concerns. It does not mean that the issues have resided and as you can see by the attached correspondence there is a concerted effort to bring the various concerns to the attention of Australian lawmakers for rectification of the bad law FATCA is. We would hope that there is scope for you to work with your legislative colleagues to protect Australian citizens and residents from the draconian influence the U.S. has over Australian interests, sovereignty and jurisdiction on Australian soil. Of course the administrative costs of this is borne by the Australian financial services sector and the Australian taxpayer. Not unlike Donald Trump’s agenda to stick it to the Mexican people to pay for the “wall”. His policy to make Mexico pay –surprise surprise – is to target and confiscate monies that Mexican workers in the U.S transfer to families in Mexico. Typical of U.S. my-way-or-the-highway diplomacy utilised to compromise/blackmail financial institutions worldwide under FATCA.
Assistance is being sought to
1) Initiate a Parliamentary Inquiry into the Australia – U.S. Tax treaty gaps that disadvantage Australians
2) Request the ATO to report to Parliament on the Australia – U.S. tax treaty gaps impacting Australian tax residents
3) Request the ATO to amend their misleading website information
4) Refer the matter to the Australian Human Rights Commission for the matter that Australian law that turns Australian banks and the ATO into arms of the US IRS aiding in the enforcement of unjust tax and compliance
We would appreciate any and all help to support this campaign. It strikes at the heart of being accepted and supported as full Australians for now and for future generations. Being realistic though – and given that the numbers of Australians affected is low in the game of politics – it is difficult to imagine that effective action will be taken to address the concerns outlined above. We live in hope, and at the least that you will take notice of this update on the diabolical FATCA impact on Australian citizens and residents.
@Alby – Thank you for that update, and for posting your recent correspondence with the government.
Jakdac asked me to post my correspondence with the Treasury and Tax Treaty unit. Please note, I sent my emails to them back in October, and heard back in November. I did not receive anything back from the Treasurer, only the Tax Treaty Unit. See below, noting the “we are well aware of the problems” attitude.
——
taxtreatiesunit_consultation
6-Nov-2015
Dear Ms
Thank you for your emails of 13 October to Luise McCulloch and to the Tax Treaties Unit of the Treasury regarding the Australian and United States (US) tax treatment of your superannuation account and potential capital gain from the sale of your home.
The Australian Treasury is aware of the difficulties experienced by Australian residents who hold US citizenship and, as a result, are taxable in both Australia and the US on their Australian superannuation entitlements and capital gains. As you have noted, provisions in the 2006 US Model Tax Income Tax Convention, if adopted in a revised tax treaty between Australia and the US, may serve to alleviate potential double taxation of such superannuation entitlements and capital gains in the future.
The Australia Government is aware of the importance of resolving this issue for US citizens who are Australian tax residents (including dual Australia-US citizens) and has asked the Australian Treasury to note this for specific consideration when the existing Australia-US tax treaty is next reviewed.
For your information, the commencement of tax treaty negotiations is subject to the agreement of both governments, having regard to their respective treaty negotiation priorities and negotiation resources. At this time, we are not able to advise you on when the next update to the Australia-US tax treaty will occur. However, it is usual Australian Government practice to announce the commencement of tax treaty negotiations and invite public comments on the treaty outcomes Australia should seek.
Thank you for taking the time to write us about your concerns. We trust you will find this information useful.
Yours sincerely
Renee
Renee O’Shanassy
Policy Analyst
Cross Border Taxation Unit
Corporate and International Tax Division
The Treasury, PARKES ACT 2600
—–Original Message—–
From:
Sent: Tuesday, 13 October 2015 6:08 PM
To: taxtreatiesunit_consultation
Subject: 2006 US-Australia Model Tax Treaty Status
To the Tax Treaties Unit, The Treasury of Australia:
I am an Australian Citizen with an American place of birth. Unlike any other “regular” Australian Citizen, I am currently required to pay tax on my Australian superannuation fund. Even worse, I have to file US income tax returns each year, reporting my superannuation account, even though I am not old enough to withdraw from it. Furthermore, I am required to pay tax on any capital gains I may realise upon the sale of my home. I feel like a “second class citizen”, that I am not allowed to have tax-free retirement savings, or enjoy home ownership the way other Australians do. It comes down to the gaps in the current tax treaty with the USA. I have been told that if the 2006 Model Treaty is passed, these gaps will be filled.
I am a loyal Australian with no intentions of returning to the US. I know I am not the only person in this predicament. Could you please provide information on the status of this treaty being passed?
Sincerely
NSW
The role of government is not just to observe. IMO: The Tax Treaty Unit is an observer to the Australian Government participation in US Government financial bullying of Australians on Australian soil.
@Alby do you mind sharing the MP you are communicating with so I may bring the issues up with them on Twitter.
The best shot here, I believe, is inferring that the tax treaty is broke, was not adequately reviewed by Parliament, and was misrepresented to Parliament and Australians (via the ATO website) as “preventing” double taxation and being all good. Else, we will get the usual, that it is a matter for the US.
@Sleepless, I am a bit behind on the 2006 convention, yet I think it only extends tax free status for retirement accounts (superannuation) the same as is extended to other countries such as Canada. There still would be US capital gains tax and most all other elements of CBT. It would be a positive step.
“Tax Treaty Gaps” is language from Allison Christians and infers that the treaty was not done right or is incomplete.
We may learn something of how the recent tax treaty with Germany became law:
http://www.financeminister.gov.au/media-release/2015/11/13/new-tax-treaty-signed-germany
Senator Cormann signed the new treaty (I heard that and sent him this tweet: https://twitter.com/JCDoubleTaxed/status/704770350467325952)
The new treaty will enter into force after both countries have completed their domestic requirements and instruments of ratification have been exchanged.
Legislation will be introduced into the Australian Parliament as soon as practicable to give the revised treaty the force of law in Australia.
The Tax Treaty does not prevent double taxation, it guarantees double taxation through tax treaty gaps.
https://twitter.com/JCDoubleTaxed/status/720025596785336321
Just talked to Tax Treaty Unit
No action yet
Again they need Scott Morrison to say get onto it
I believe he is on facebook, twitter and has a government email
Tax Treaty Revision. If the tax treaty was recognised as infringing on the sovereignty of Australia that should prompt action rather than support waiting and passivity.
Renee O’Shanassy , Treasury, Morrison. Please provide e-mail addresses so I may communicate my view. I wrote a few letters nearly two years ago. Time to communicate further.
Our MP has forwarded our letter to Scott Morrison (Treasurer) with copies to the Foreign Minister (Julie Bishop) and the Attorney-General (George Brandis). His cover letter includes this paragraph:
The more often Morrison’s office gets correspondence like this, the better.
@Karen sounds good. A point of clarity would have been “on Australian soil”
I have provided information above as to Corman’s role in the tax treaty with Germany – he signed it. He seems to have a key role, yet treaties are under the Treasury Department. Perhaps don’t forget Corman in communications: https://twitter.com/JCDoubleTaxed/status/704868038416334848
JC,
I didn’t write that paragraph – my MP (or his staff) did. Fortunately, it looks like he just wrote a short cover letter then attached the letter that my husband and I had carefully drafted.
@Karen. I am beyond stressed about this. Would you be able to email me? I am an Aussie, married to a Yank and we are just going through all this. DYING inside and not sleeping at all. Kind regards.
@StressedinAus You might consider requesting a meeting with your MP.
@JC…
After going back and reading this thread from the start, I am looking in to that tomorrow for sure. Thank you. We are mostly stressed about the future. If this doesn’t change, our hard earned Aussie dollars (mine included thanks to joint bank account) are under scrutiny and our retirement will be taxed from the US. My husband doesn’t want to renounce. Have any of your done that yet? Does everyone here lodge to the US every year? We do, and as you can see, it is 1:23am and here we are, wide awake… Do you really see change happening?