Liberty and justice for all United States persons abroad

The Isaac Brock Society

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

Australian Americans Overseas 640 x 640

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

***If clicking on a comment link brings you to the wrong page, click here  to get on the most recent page of comments. (alternatively, to reach the most recent comment page, go to  the url in the bar at the top of your browser and delete everything after October 2018

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

08: Investing with One Hand Tied Behind Your Back – an Australian Perspective on United States Tax Rules for Non-Resident Citizens

July 2017

18: Australian Greens Senator @LarissaWaters resigns because of her CANADIAN place of birth-Too bad she was born in Canada

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

07: Australia and FATCA

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

 

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

  1. Check out

    http://isaacbrocksociety.ca/2015/07/18/the-shot-heard-round-the-world-live-from-thatchannel-com/comment-page-3/#comment-6314707

    A recent U.S. Senate Finance Committee study failed to issue any recommendations to address the intolerable treatment of the 8 million “U.S.Persons” (and their families) living abroad. One noted tax-lawyer implied that the Working Committee “is willing to state that these concerns need to be considered however,is not yet willing to say there is a crisis.”

    The U.S. Senate Finance Committee response to expats: “NOT a Crisis”

    Our response: “See You in Court”

  3. Good to know ACA is on the job

    Thank you for this Jak. We know Tiffany and have regular contact with her.

    Best,

    Marylouise Serrato
    ACA Executive Director

  4. Seems like things are stepping up

    https://www.democratsabroad.org/group/fbarfatca/americans-abroad-caucus-cover-and-sign-letter-support-fatca-safe-harbor

    Dear Democrats Abroad,

    We are at a pivotal milestone in our efforts to reform FATCA but we need our grassroots activists like you to ACT NOW.

    Help us write 1000 letters to Congress by Friday to support the FATCA reform “sign on” letter!

    As we reported earlier this month, Americans Abroad Caucus Co-Chairs Representative Carolyn Maloney (D-NY) and Mick Mulvaney (R-SC) are circulating a “sign on” letter on Capitol Hill pressuring Treasury Secretary Jacob Lew and IRS Commissioner John Koskinen to implement the FATCA Same Country Safe Harbor for Americans abroad.

    The letter should have hit the desk of your member of Congress. Maybe they’ve seen it, maybe not – but the letter will be closed for new signatures soon. Signatures of support from members of Congress are needed now! Send a message to your elected representatives RIGHT NOW, reminding them about the letter and asking them to sign it.

    It’s easy.

    1) Click here and enter your U.S. voting address to compose a message to your elected representatives

    2) Either copy and paste the suggested message below or write your own polite and succinct message urging your member of Congress to sign the letter in support of the Same Country Safe Harbor that Representative Maloney and Representative Mulvaney are circulating.

    3) Let us know who you have contacted by filling out this very very short questionnaire HERE so that we can amplify your voice and continue to put pressure on Congress.

    Thank you for participating in this important initiative in support of our work to fix FATCA. If you’d like to further support FATCA reform efforts, please make a contribution by clicking here.

    Democrats Abroad FBAR/FATCA Task Force

    ###

    SUGGESTED MESSAGE ENCOURAGING ELECTED OFFICIALS TO SIGN THE AMERICANS ABROAD CAUCUS LETTER TO TREASURY AND THE IRS IN SUPPORT OF THE FATCA SAME COUNTRY SAFE HARBOR FOR AMERICANS ABROAD

    SUBJECT: Congressional Sign On Letter supporting the FATCA Safe Harbor for Americans Abroad

    I live in [country of residence] and I vote in [state] District [number if known].

    Americans living outside of the United States like me are bearing the unintended, but serious consequences of the Foreign Account Tax Compliance Act (FATCA). The law was, of course, intended to discourage and apprehend US citizens hiding untaxed earnings in foreign financial accounts. The reporting requirements FATCA imposes us and our banks were never intended to impact ordinary, middle class, law-abiding Americans abroad. However, due to FATCA our financial accounts are being closed, our relationships with our non-American spouses are under strain, some of us are being denied roles, promotions or partnership in business and some are planning or contemplating renouncing their US citizenship. Some have already done so.

    We need help urgently.

    The Democratic and Republican leaders of the Americans Abroad Caucus, Representative Carolyn Maloney (D-NY) and Representative Mick Mulvaney (R-SC), have drafted a letter to the Treasury and IRS in support of a reform to the FATCA implementation rules which would resolve the problems that FATCA causes for 90 percent of Americans abroad: the FATCA Same Country Safe Harbor for Americans abroad.

    Representative Maloney and Representative Mulvaney are circulating the letter on Capitol Hill. I strongly urge you to join your Congressional colleagues in signing on to this letter in support of the Same Country Safe Harbor. There are 8.7 million Americans living outside the US. We vote, we file tax returns and we are calling on you to help us by fixing this law that has so badly impacted our financial and personal lives.

    Please sign the Congressional letter to Secretary Lew and Commissioner Koskinen in support of the FATCA Same Country Safe Harbor for Americans abroad. Please contact Natalee Binkholder (Natalee.binkholder@mail.house.gov ) in Rep Mulvaney’s office or Max Whitcomb (Max.Whitcomb@mail.house.gov) in Rep Maloney’s office with any questions and to deliver your support.

    Thank you for your help and thank you for serving.

    Regards,

    Name

    City, Country

    ###

    This message is paid for by the Democratic Party Committee Abroad
    Democrats Abroad

    PO Box 15130
    Washington, DC 20003
    United States
    Telephone: +1-202-621-2085 +1-202-621-2085
    It is being sent to you because you are a member of one or more of these Democrats Abroad group(s): DA International and DA International.

    I have moved back to the US and want to be moved to the DA US Alumni group.
    I have moved back to the US and want to be removed from the DA membership list.
    I have moved to another country or chapter area and want my membership to be transferred. Please send us your new address.
    I want to be completely removed from membership in ALL groups in Democrats Abroad.
    I want to continue my DA membership but receive only Voter Information emails.

  7. Expats Seek Tax Overhaul
    Jul 27, 2015 by WealthManagement.com Staff in The Daily Brief

    No taxation without representation. | Copyright Daniel Berehulak, Getty Images

    More than three out of every four Americans living abroad say that taxes will play an important role in the next presidential election. In a recent poll of over 400 expatriate clients, the deVere Group found 78 percent say they would vote for a presidential candidate who vowed to consider an overhaul of the U.S. citizenship-based tax system. Generally expats living abroad have to pay both U.S. taxes, as well as taxes to the country in which they currently live—and many live in high tax jurisdictions such as the United Kingdom and Canada. “The citizenship-based taxation system financially discriminates against Americans who happen to choose to live and/or work outside U.S. borders, as is their right,” says Nigel Green, the founder and chief executive of deVere Group.

    http://wealthmanagement.com/blog/expats-seek-tax-overhaul

  8. FATCA reporting etc. for clarity

    Does this safe harbor deal let me only get my foreign earned pension taxed in country of origin ?
    My house sale exempt by US tax ?
    No US death tax ?

  9. The USA has effectively killed off their middle-class-thus, “tax income”. The result is the gov’t attempting to get “blood from a stone”. The top 1% do f*ck-all to help the economy– no matter what bill of goods they attempt to sell you. It’s the top1% raping US citizens, world-wide & hiring the lawyers to find the loopholes for them to not give back.

    The result? This. No way will the gov’t go RBT when they’re so poor & corrupt (due to their own greed).

    I’d be very happy to be shown I’m wrong– really happy, actually…it’s a depressing situation otherwise.

  10. Newest from Democrats Abroad / 10,000 messages / at least messages getting through and getting attention / One can use this push to send their own suggested solutions

    Dear Democrats Abroad Members,

    We are pleased to report that after 2 days our FATCA grassroots campaign has yielded an excellent response! We asked you to message members of Congress asking them to sign the Congressional letter to the Treasury Secretary and IRS Commissioner in support of the Foreign Account Tax Compliance Act (FATCA) Same Country Safe Harbor reform.

    More than 3,000 of you have participated! Nearly 10,000 messages have been sent to your Representatives and Senators asking them to sign the letter and throw their support behind this common sense reform to provide relief to Americans abroad from the burden of FATCA reporting.

    Please help us send that number soaring towards 20,000 messages! We need your help URGENTLY!

    The sponsors of the letter (Rep Maloney and Rep Mulvaney) anticipate “closing it off” to signatures at the end of this legislative session – that’s the end of this week! We need to demonstrate that there is growing momentum in Congressional support for this reform in order to keep the letter open to more signatures. The more signatures on the letter the louder the call coming from Congress for Treasury and the IRS to act.

    If you have not yet participated, please send your message to your Senators and Representative RIGHT NOW, reminding them about the letter and asking them to sign it.

  11. From Jonathan Lachowitz (WSJ Article)

    Maybe invite him to talks with Tony, Tiffany and Eric and stress the point that it changes nothing on taxes?

    Hi Jak, This would unfortunately change nothing on taxes…different laws different subject matter…All the best, Jonathan

    P.S. happy to try and talk on issues…extra travel for a meeting tough at the moment..

  13. http://blogs.wsj.com/expat/2015/07/28/fatca-relief-coming-for-u-s-expats-via-same-country-exception-opinion/tab/comments/?sort_order=desc

    I quote Jackie Bugnion of American Citizens Abroad in her submission to the House Ways and Means Committee on Tax Reform. She said:

    “In 1776, the United States declared independence because the mother country on the other side of the ocean was imposing taxes on the colonies for the benefit of England. Resentment started when Britain tried to enforce the Navigation Act after 1763. Resentment increased with the Stamp Act in 1765, a way for Britain to tax the colonies. The British Tea Act of 1773 led to the Tea Party and we all know the outcome – the American Revolution and independence crying out “no taxation without representation”.

  20. Thank you for contacting me about international tax reform. Its good to hear from you and I welcome the opportunity to respond.

    As I have written to you in the past, the United States currently has a worldwide tax system that taxes the income of American residents whether it’s earned in the U.S. or abroad. If an individual has investments overseas any income on those assets are generally taxed by the country in which they are earned. In order to prevent this same income from being taxed twice, once in the foreign country and again in the U.S., a foreign tax credit is permitted. Foreigners who invest in the U.S. are subject to U.S. federal income taxes. Generally, their country of residence similarly provides a credit for taxes they paid in the U.S. or if their home country has a territorial tax system, may not tax income earned by them overseas at all.

    The U.S. is one of the few developed countries that continues to tax its residence, whether individuals or corporation, on a worldwide basis. The U.S. worldwide tax system already puts American businesses at a strong disadvantage to their overseas competitors.

    As you know, both chambers of Congress have been working diligently this year to come to a consensus on how best to reform the tax code. From the beginning, the Senate Finance Committee has made simplicity, efficiency, fairness, and economic growth the main tenants of any viable tax reform plan.

    Additionally, you may be interested to know that on top of the numerous discussions to reform the tax code at the staff level in the current and previous Congresses, the Senate Finance Committee has held five hearings regarding tax reform in the first half of this year alone, including a hearing on February 10 where the former Chairman, Bob Packwood, and Ranking Member, Bill Bradley, of the Finance Committee who helped pass the last comprehensive tax reform in 1986, testified. Everyone on the Committee agreed is necessary to learn how progress was made in the past in order to advance going forward.

    During his testimony, Senator Bradley advocated that any tax proposal should be consistent with efficiency, equity, fairness, and simplicity; the four principles agreed upon by Congress and the Administration. In essence, any proposal that didn’t align with those principles would not be incorporated into law no matter who advocated for it.

    Additionally, it was emphasized throughout the hearing that the “prestige and clout” of the White House and the Treasury Department is essential in navigating unforeseen, but inevitable roadblocks along the way. This is something we haven’t seen yet during discussions, but I remain hopeful that the Administration will make it a priority as President Obama’s term winds down.

    During the first half of this year, the Chairman convened five bipartisan working groups to focus on the various sectors of tax reform. I was named a co-chair of the individual income tax working group, one of five separate bipartisan Finance Committee tax working groups convened by the Chairman and Ranking Member. The other working groups are business income tax, savings and investment; international tax; and community development and infrastructure.

    Tax policy affects the lives of every American, that’s why I made it a priority to get feedback when the working groups were first created. Fill out a survey on my website in February with their thoughts on how to improve the tax code. Rank priorities and share views on individual tax breaks that are important to their households and I appreciate the responses I received . Additionally, I joined a forum with tax professionals and business leaders in Des Moines with the same goal of tax reform. Tax simplification and fairness were common themes expressed throughout the forum and tax survey.

    As you acknowledged in your letter, the international tax working group’s efforts along with the results of the four other working groups can be seen at http://www.finance.senate.gov/newsroom/chairman/release/?id=e9eefc66-7e11-4276-939f-3eca6fd6d959.

    I understand that our current tax code rewards some at the expense of others. Often, those who can afford a high priced accountant and tax lawyer benefit from the growing complexity of our tax code. Taxpayers shouldn’t have to hire a professional just to file their taxes.

    Congress should get serious about comprehensive tax reform. Our economy and the wellbeing of Americans across the country can’t wait. I’m glad to offer my experience to this effort, and I’ll work to incorporate the feedback I hear all the time about their frustrations with the tax code. In closing, we need a tax code that is simpler, fairer, and more conducive to economic growth.

    Again, thank you for contacting me. Representative government works best when there is constant communication between you and your representatives. Please keep in touch.

    Sincerely,
    Chuck

    http://www.grassley.senate.gov

  23. Winston Churchill’s Parents
    Winston’s father was the British Lord Randolph Churchill, the youngest son of John, the 7th Duke of Marlborough. Lord Randolph’s ancestor John Churchill made history by winning many successful military campaigns in Europe for Queen Anne almost 200 years earlier. His mother was the American Jennie Jerome.

  24. Hi – I’ll post this in the Australian section
    This is where it was last left in the Australian government parliamentary Completed Inquires and Reports records link below – It’s called Record 140
    http://www.aph.gov.au/Parliamentary_Business/Committees/Joint/Treaties/completed_inquiries
    Its called Record 140
    This Interim Report details the Joint Standing Committee on Treaties’ recommendation in relation to its inquiry into the Agreement between the Government of Australia and the Government of the United States of America to Improve International Tax Compliance and Implement FATCA.
    The Agreement is an unusual treaty action in that it has been negotiated to assist Australian business in complying with an United States tax law, the Foreign Account Tax Compliance Act, or FATCA.
    FATCA comes into effect on 1 July 2014.
    To ensure the Agreement and its related legislation are in place by that date, the Treasurer, the Hon Joe Hockey MP, wrote to the Committee to request that the Committee expedite its consideration of the Agreement.
    If the 1 July deadline is not met, Australian financial institutions with interests in the United States will be faced with either significant compliance costs associated with FATCA or a withholding tax of 30 per cent on income derived in the United States.
    The Committee, despite reservations about the Agreement, appreciates that it makes the best of a less than satisfactory situation.
    Accordingly, the Committee supports the Agreement between the Government of Australia and the Government of the United States of America to Improve International Tax Compliance and Implement FATCA and recommends that binding treaty action be taken.
    The Committee will table a full report of its inquiry into this Agreement in due course.

    Recommendation 1
    The Treaties Committee supports the Agreement between the Government of Australia and the Government of the United States of America to Improve International Tax Compliance and Implement FATCA and recommends that binding treaty action be taken

    The committee recognised FATCA is UNUSUAL and expresses RESERVATIONS. I would like to see this Committee full report into FATCA
    I cant wait to see what decision occurs in Canada on Sept 13.

  25. Reposting in this section

    Speaking the to some MPs in Australia and the Australian treasury I get the feeling that trading with the US was far more important than the treatment of Australian Citizens who are US persons. When I explain how we feel about the segregation based on citizenship, invasion into our privacy, possibility of huge fines the government officials simply say but you are a US citizen. When I explain that I left the US at age 1 they say but you are a US citizen.

    I feel helpless and they seem to have no compassion.

    Any comments

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