FATCA and Australia – Part 1 of 2

1,187 thoughts on “FATCA and Australia – Part 1 of 2”

1. On https://www.facebook.com/FoxNews went through 2500 comments with search term “tax” besides my posts re Expat tax could ONLY find these

   Laura Wilson Because of citizenship based taxation and FATCA US citizens are increasingly unable to bank abroad, invest nor save for retirement. They are often doubly taxed and harshly penalized. If you cannot bank you cannot leave. This includes students, exporters, those wishing to join/start businesses and those looking for international experience. Will you change the US method of taxation to one based on residency rather than citizenship as the remainder of the world employs so the US can dance in the global economy and compete internationally?

   http://www.wsj.com/…/expats-left-frustrated-as-banks…

   Laura Wilson US citizens living abroad are being unjustly terrorized by the IRS according to taxpayer advocate Nina Olson. They can no longer compete on the international stage because of citizenship based taxation and now FATCA. Will you bring the US into the 21st century, honor the principles that were fought for in the American Revolution and convert the US to residency based taxation as enjoyed by the remainder of the world?

   Expats Left Frustrated as Banks Cut Services Abroad
   Americans living abroad are being cut off by banks…
   WSJ.COM|BY LAURA SAUNDERS

   Larry Feign The State Department estimates 8.7 million Americans live and work abroad, a population larger than 39 states. The USA is the only country in the world which taxes its citizens living overseas. The USA also requires its overseas citizens to report their bank accounts, however small, to the Financial Crimes Division of the IRS, treating them as tax-dodging criminals, something that no other Americans are required to do. On top of this, the USA passed the FATCA law, requiring banks around the world to report on American clients and savers, including schoolchildren. The net result is overseas banks refusing to do business with American individuals and businesses, which hurts not only those US citizens, but American exports and influence overseas. The dilemma is causing the greatest surge of citizenship renunciations in history. Should the USA join the rest of the world in not taxing its citizens living abroad, thus freeing them to expand American business, influence and good will?

2. Checked 3600 plus posts on https://www.facebook.com/FoxNews

   ONE more

   Kit Hardy The U.S. Is the only country in the world that practices Citizen Based Taxation CBT, apart from Eritrea which one of the worst dictatorships and violators of human rights in the WORLD. Will the candidate repeal CBT, taxation without representation and bring justice to its 8 MILLION+ citizens who reside permantly abroad and are fully taxed in the countries the reside in?

3. Previously checked 3600 plus posts on https://www.facebook.com/FoxNews

   there was ONE more

   Today checked 1400 more by search term “tax” NO more re Expat tax

4. After being delayed for a second time, the Senate Finance Committee Tax Reform Working Groups are expected to submit their reports to the full Committee on Tuesday, July 7.

   Can not find any news regarding this has anybody else ?

5. ????
   Tuesday July 7, 2015 12:01 AM

   The White House wants Congress to pay for a long-term highway bill by overhauling parts of the business tax code. That effort could get a boost later this week when members of the Senate Finance Committee’s international tax reform working group complete work on recommendations for business tax reform

   http://readingeagle.com/ap/article/congress-races-toward-highway-trust-fund-deadline&template=mobileart

6. Posts on https://www.facebook.com/FoxNews

   TWO more keep them coming

   Bob Remington The United States is the only civilized country in the world that has a tax system based on citizenship rather than residency. As a result, average law-abiding Americans who live in other countries and who do not earn enough money to owe any US tax are renouncing their citizenships in record numbers because of the compliance costs associated with FATCA and the restrictive financial regulations it imposes on their daily lives. Would you be in favor of joining rest of the world community and abandoning citizenship-based taxation to bring relief to the 8.7 million Americans who live abroad?

   Walt Sanchez Americans living in countries outside the U.S. are our nation’s strongest ambassadors, yet a growing number of them feel that the US government is the biggest threat to their existence. Laws like the Foreign Account Tax Compliance Act and Patriot Act are shutting them out of banking systems both here and abroad, and on no suspicion of wrongdoing. Our unique tax system that treats our Americans abroad as though they are resident in the US makes it impossible for many of them to remain US citizens. Should the US go to a tax system based on residence like the rest of the world, or should the US continue with tax laws that generate little revenue but have the potential to end American global migration?

7. Regarding 82 page U.S. Senate International Tax Reform Report released…
   Posted on July 8, 2015 by calgary411 Posted in Issues regarding US persons abroad

   Just sent info to many US newspapers and comments as per my media emails I put on earlier. All the more reason to post on https://www.facebook.com/FoxNews

8. Postings on https://www.facebook.com/FoxNews

   Went through another 2000 with key search “tax” ONLY ONE more

   Nathan J. Churchill There are over 8 million Americans living overseas. Recent FATCA tax legislation is causing serious harm to all of us, indeed making our lives almost impossible. We overseas Americans have enough votes to swing the election and are almost all single issue voters until FATCA is repealed. What is your position on FATCA?

9. Interesting

   FATCA Repeal: Looks Like Good News for 7.6 Million Expats

   http://www.lizlarroquette.com/facta-repeal-looks-like-good-news-for-7-6-million-expats/

10. ???

    Rich and American? Australia wants you

    Reuters
    July 13, 2015, 7:20 am
    Share
    By Swati Pandey

    SYDNEY (Reuters) – Flush with the success of a millionaire visa programme to attract wealthy Chinese, Australia is now promising citizenship to rich Americans who are willing to bring their cash and entrepreneurial talent Down Under.

    But there’s a rather large catch: participants in the invitation-only Premium Investment Visa scheme will need to invest A$15 million (7 million pounds) for the privilege of becoming an Aussie.

    Launched earlier this month but not widely publicised, the scheme’s investment requirements easily top the existing two-year-old Significant Investor Visa (SIV) programme, which asks for a A$5 million commitment and has been especially popular with Chinese migrants.

    Investment advisors who have been briefed on the plan by government officials expressed doubts about the wisdom of targeting Americans, with several telling Reuters the more obvious place to start was Australia’s Asian neighbours.

    After all, why would a successful U.S. entrepreneur want to invest a large chunk of cash in Australia – a country very similar to the United States, just further away from everything – in exchange for a passport that carries few additional benefits to their own?

    “The U.S. has some problems that Australia doesn’t have. It’s got a lot more racial crimes, it’s got a lot more gun-related crimes, but I don’t think that is going to drive a whole bunch of ultra-rich Americans out of their country,” said Bill Fuggle, a partner at law firm Baker & McKenzie who advises wealthy Chinese migrating to Australia.

    The programme, which does not have any residency requirement, allows would-be migrants to invest pretty much anywhere except housing. In comparison, Significant Investor Visa holders must put at least 40 percent of their A$5 million investments in risky small-cap and venture capital funds, and be an Australian resident for 40 days a year for four years.

    NOT ABOUT MONEY

    The Australian Trade Commission (Austrade) revealed for the first time that the programme would begin in the United States, Australia’s top two-way investment market, before expanding to other major investment markets such as the United Kingdom.

    Despite the hefty investment requirement, officials say it’s not about the money. It’s about attracting the best and brightest entrepreneurial talent from around the globe, and from America in particular.

    “The United States … is a natural place to target the kinds of entrepreneurial skills and talents we need to cultivate further in Australia,” Austrade told Reuters in an email.

    U.S. “innovators” would help to build links between Australians and “entrepreneurial hubs” such as Silicon Valley, Los Angeles and Boston, it added.

    “Australia has long been a place of innovative ideas, research and development, but has often lacked the capital, depth of entrepreneurial talent or scale to commercialise our ideas successfully,” Austrade said.

    Australia’s national science agency, the Commonwealth Scientific and Industrial Research Organisation (CSIRO), boasts inventions such as WiFi, high-nutrient grains and a new way of making plastics that is already the basis of more than 200 patents. But it often struggles to bring its ideas to market due to a lack of venture capital.

    For the fourth consecutive year, Australia made the Top 10 global destinations for foreign direct investment in 2014, according to the UN Conference on Trade and Development. It ranked 8th, one ahead of the UK, and is one of only four developed countries in the Top 10.

    Tax experts said that while there were no major tax advantages for Americans in Australia, the depreciating Aussie dollar and the country’s proximity to emerging markets like Indonesia and China could help to attract U.S. talent.

    Another recent area of heightened U.S. interest in Australia is the stock market, which is being eyed as a fundraising vehicle for venture capital-shy U.S. tech start-ups after the successful listing of San Francisco-based online recruiter 1-page in October.

    Apple Inc co-founder Steve Wozniak is the most famous U.S. entrepreneurial talent to take up Australian residency, after his son married an Australian and migrated to Sydney.

    “No country is perfect, but I like a lot of things about this place,” he told the Australian Financial Review newspaper in December. Wozniak declined to be interviewed for this story.

    CHINA RISING

    More than 90 percent of the roughly 3,000 applicants for Significant Investor Visas are Chinese who wish to move to Australia for a better lifestyle or to avoid a sweeping corruption crackdown at home.

    Americans hardly figure among those being granted SIVs, fuelling doubts about how many will be interested in a “premium” visa.

    “America and Australia are very similar countries. You could move from San Francisco to Sydney and it would be almost the same life,” Baker & McKenzie’s Fuggle said.

    “So we are much more likely to get ultra-high net-worth Chinese entrepreneurs than Silicon Valley Americans.”

    (Writing by Stephen Coates; Editing by Simon Cameron-Moore)

    https://au.news.yahoo.com/world/a/28769564/rich-and-american-australia-wants-you/

11. @JakDac

    Looks like Austrade doesn’t know about FATCA.

    http://www.austrade.gov.au/invest/significant-investor-visa-and-premium-investor-visa-programmes

12. Some extra help ACA

    Once the candidate field gets culled down, ACA normally asks the candidates to provide a written statement as to how they will address the issues affecting Americans living and working overseas. We have done this with every Presidential Election going back to the 1970s.

    Thanks!

    Marylouise

13. Called FIRST time staffer has received a call re EXPat Tax

    Call in Senate Finance Committee at +1 202-224-4515

    Approx 30 staffers each side whole finance committee (R) (D)

    After talking to staffer you may want to ask to talk to or leave message for the main people regarding our concerns

    Eric Oman (R)

    Tiffany Smith (D)

14. Why not email the main people regarding our concerns

    Eric Oman (R) Eric_Oman@finance.senate.gov

    Tiffany Smith (D) Tiffany_Smith@finance.senate.gov

15. Apple Inc co-founder Steve Wozniak is the most famous U.S. entrepreneurial talent to take up Australian residency

    Tell HIM about our plight this could get good publicity

    https://www.facebook.com/SteveWozniak/timeline

16. Those “managed funds” under the SIV sure sound like PFICs. Are they giving their investors the statements so they can be QEFs?

17. Bcc: them all

    Mr. Mark Prater, Deputy Staff Director; Chief Counsel, Tax
    Mr. Preston Rutledge, Counsel, Tax
    Mr. Jim Lyons, Counsel, Tax
    Mr. Tony Coughlan, Counsel, Tax
    Mr. Nick Wyatt, Professional Staff Member, Tax and Nomination
    Mr. Eric Oman, Senior Advisor, Tax and Accounting Policy
    Mr. Christopher Hanna, Senior Advisor, Tax Policy
    Mr. Todd Metcalf, Chief Counsel, Tax
    Ms. Kara Getz, Senior Counsel, Tax
    Mr. Ryan Abraham, Senior Counsel, Tax and Energy
    Ms. Tiffany Smith, Senior Counsel, Tax
    Mr. Todd Wooten, Senior Counsel, Energy and Tax
    Ms. Danielle Deraney, Analyst, Tax Policy
    Mr. Christopher Arneson, Advisor, Tax Policy
    Mr. Adam Carasso, Senior Advisor, Tax and Economics

    mark_prater@finance.senate.gov
    preston_rutledge@finance.senate.gov
    jim_lyons@finance.senate.gov
    tony_coughlan@finance.senate.gov
    nick_wyatt@finance.senate.gov
    eric_oman@finance.senate.gov
    christopher_hanna@finance.senate.gov
    todd_metcalf@finance.senate.gov
    kara_getz@finance.senate.gov
    ryan_abraham@finance.senate.gov
    tiffany_smith@finance.senate.gov
    todd_wooten@finance.senate.gov
    danielle_deraney@finance.senate.gov
    christopher_arneson@finance.senate.gov
    adam_carasso@finance.senate.gov

    It’s working

    Oman, Eric (Finance)
    10:58 PM (28 minutes ago)
    to Tony, me
    Thanks. I’m copying Tony Coughlan on this email, who spearheads our efforts on international taxation.

    From: Jak Dac
    Sent: Tuesday, July 14, 2015 9:03 PM
    To: Oman, Eric (Finance)
    Subject: Overhaul the taxation of individual Americans living abroad

    Including in emails

    Recruit the 8.7 million U.S. citizens living and working abroad to back it in next year’s presidential elections

    http://www.washingtontimes.com/news/2015/jul/14/rand-paul-sues-obama-over-foreign-banking-law/

18. Thank you. We appreciate knowing you read our report and agreed with it. Chairman Hatch is very committed to an overhaul of the US international tax rules. We are spending considerable time working on it, and we surely hope we can succeed.

    Kind regards,

    J. Anthony Coughlan
    Tax Counsel
    U.S. Senate Finance Committee, Republican Staff
    Senator Orrin G. Hatch (Utah), Chairman
    219 Dirksen Senate Office Building
    Washington, D.C. 20510-

    __________________________________________________________________
    Read our report and agreed with it ?
    I do NOT agree with the minimal amount of effort within the report (section F) .This gives NO solutions for 8.7 million ExPat Americans whom are under much duress physically, mentally,financially etc. This is affecting marriages, bank accounts people are crying giving up citizenship of a country they have fond memories of. Remember your forefathers broke away from Britain because of UNFAIR taxation. The US is the ONLY westernised country using CBT, We have come a long way since the horse and carts of the Civil War. Relationships and newer and better planes takes settlers to new countries. Engelbert had it right “Please release me let me go” (re taxation). Please give feedback regarding this SPECIFIC concern as reflected in 75% of the International (and a fair amount of the INDIVIDUAL ) tax submissions received. Frankly the answer we got reflects what some people are putting to the section reference F (guess the rest)

    Please help this has been known to the government for many many years along with previous submissions

    Fingers crossed

    Cheers,
    JD

    US international tax rules ? The ones relating to EXPATS not just business . Am I correct that on your web site we may find hearings related specifically to this issue ?

    Cheers
    JD

19. Nonpartisan Voter Services for U.S. Citizens Overseas and Uniformed Services Members

    https://www.overseasvotefoundation.org/vote/home.htm

20. Anyone know on Fox News how to search all comments (15000 plus now) for keyword tax to check out expat comments (except for clicking 50 at a time)

    Fox News
    July 7 at 6:00am ·
    What is YOUR one question for the candidates? Fox News and Facebook are teaming up to bring you the first GOP presidential debate. Submit your question in the comments below or click here: http://bit.ly/1H4seMV to upload a photo or video. It could be featured in the debate August 6th on Fox News Channel!

21. To the OP,

    You said that you regret registering your kids as USCs. I wish I didn’t have to, the way that I understand US laws is that if you have kid that is even eligible for US Citizenship, they have to enter the US with a US passport.

    I, for one, don’t want to be a martyr.

22. I have received your emails. We’ve met with several US citizen living abroad who described the issues to us. It’s something we are looking at as part of tax reform.

    Best,

    Tiffany Smith
    Senior Tax Counsel
    Senate Finance Committee
    (202) 224-4515

    Her email tiffany_smith@finance.senate.gov

23. Thanks Tiffany

    Please elaborate on what is being planned

    Smith, Tiffany (Finance)

    I can’t elaborate at this time.

    Sent from my BlackBerry 10 smartphone on the Verizon Wireless 4G LTE network.

    Will I see some action in a week ? month ?

    Smith, Tiffany (Finance)

    I’m not sure on the timing of tax reform, but it will not happen that fast. The discussions are long term.

    Sent from my BlackBerry 10 smartphone on the Verizon Wireless 4G LTE network

24. @geeez
    AFAIK, nobody has had any issues crossing the border with a son/daughter who was not born in the US and did not have a US passport.
    I believe border agents are not qualified to determine whether you are able to transmit US citizenship to your alien-born child, so I don’t think they get into it. It would be a very different story for a US-born child.

    And I’m not sure what you mean by not wanting to be a martyr. Worst case scenario, although unlikely IMO, is that the agent tells you to get a passport for your kid for next time.

25. You can make your voice heard by voting up bill H.R. 3078 here:

    https://www.popvox.com/bills/us/114/hr3078

    You “may” need a U.S. address, however…perhaps encourage your friends/family to participate?

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