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FATCA Discussion Thread (Ask your questions) Part Two

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Please ask your questions here about FATCA.

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NB: This discussion is a continuation of an older discussion that became too large for our software to handle well.  See FATCA Discussion Thread (Ask your questions) for earlier discussion.

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3,498 thoughts on “FATCA Discussion Thread (Ask your questions) Part Two”

  2. @bubblebustin
    I just got back to looking at that Wood’s article tonight, and quite a dialog got started from my first comment. I was amazed to see it, and frankly Robert had some good responses. Sorry I didn’t have time to join in again, but it appears my sentiments were well represented.

  3. Just happened to see this FAQ on a topic which comes up here from time to time. It confirms my previous argumentation, unfortunately without going into details.

    “FAQ: Are other FFIs planning to use the FATCA $50,000 de minimis rule?

    A number of FFIs are not going to use the $50,000 de minimis exception due to difficulties in changing multiple systems to calculate the value of its depository accounts.”

    From “FSI Tax Posts”, http://www.fsitaxposts.com/2013/08/13/faq-ffis-planning-fatca-50000-de-minimis-rule/

  4. @notamused…
    Thanks. I saw that too on the 50K de minimis rule. That is why I have cautioned folks to not be lulled into thinking they have a safe harbor by remaining below some artificial amount. For that I was accused of being a scare monger.. 🙂

    Also, in a linkedin exchange with a FATCA compliance person in Africa who is working on the OECD auto exchange pilot with their tax authority, she said this about it in relation to FATCA….

    “AEOI is slightly more onerous at the moment, no minimum values, potentially fewer exceptions!”

    By onerous, she means for the customers. So, if FATCA doesn’t get you, it appears that GATCA will! 🙁

  5. Here’s a new article on the numbers renouncing …. not your usual spin from within US borders:

    http://www.bizpacreview.com/2013/09/23/americans-are-fleeing-saying-goodbye-to-tax-hungry-america-83900

    So what do we have here?

    A government that penalizes a citizen’s freedom to give up citizenship when faced with confiscatory tax policies imposed by that same government, or who have parted ways with the policies of that government;

    A government with the attitude that it has the right to monitor, control and tax citizens who live or work anywhere abroad, and to punish them for looking out for their own interests by avoiding taxation;

    A web of overly burdensome, costly rules that amount to a continuous nightmare for Americans operating abroad.

    In short, more Americans are renouncing their citizenship because of the actions of a tax-greedy, freedom-suppressing U.S. government.

  6. Old article:
    “This writer works on business projects predominately in other countries. We recently advised a new ship building venture in Sweden that if they accepted American investors they would be subject to FATCA disclosures. They made a reasonable decision to not accept American money. What will be an advisor’s liability if they fail to make a FATCA disclosure? What will the impact be on American competitiveness overseas? I am certain that David Axelrod doesn’t know – or care.”
    http://03116aa.netsolhost.com/WordPress/?p=2737

  9. @fatca consequences
    This information comes from the Nordea Bank website. This is the largest bank serving all of Scandinavia plus the Baltic countries. In comparision to their prior information, this is – IMHO – a vey clear warning: if you have any US connections, do not use this bank. Not matter what your nationality – are you an au-pair in the US, an exchange student, a green card holder or a dual – even if not permanently resident in the US? Forget about using this bank ….this seems to indicate the escalation of the shut-out of various categories of “persons with US indicia”. The other Scandinavian banks have similar “warnings”.

    “Important information for customers resident in the U.S.
    The material on this site is not directed at and is not intended for United States residents and residents of other countries who are temporarily present in the United States, and any partnership, corporation, or entity organized or existing under the laws of the United States of America or of any state, territory, or possession thereof, or any estate or trust which is subject to United States tax regulations and is not an offer to provide, or a solicitation of any offer to buy or sell, products or services in the United States of America. No United States residents or residents of other countries who are temporarily present in the United States may purchase any products or services of Nordea or Nordea Investment Funds, and neither Nordea nor Nordea Investment Funds will accept an application to purchase products or services from any such person.”

  10. @allou

    The irony is how they use the term “United States Resident” or “customers resident in the U.S.” They stilll have not got their warning right!

    Now how would a causal reader, not current in Orwellian FATCA/CBT speech know what they are talking about? Any normal person might think it means what it says, “resident” but NOT know that that means any IRS designated “U.S. Person” resident in any country in anywhere in the world!

    They are going to have to work harder on their Warning!

  11. The Canadian Life Insurance Industry is certainly gearing up.

    Information for Clients on the Canada-U.S. Information Exchange Agreement to Improve Cross-Border Tax Compliance

    Under this Agreement, starting in 2014, Canadian financial institutions will be required under Canadian law to identify and report information to CRA on reportable Financial Accounts held in Canada by U.S. Persons.
    The Agreement is expected to be signed before July 1, 2014.

    http://www.clhia.ca/domino/html/clhia/CLHIA_LP4W_LND_Webstation.nsf/page/81996E243FA39EE085257BC0004EA58C/$file/CLHIA_Customer_FATCA_Q_A.pdf

  12. @warnings from banks – Swedbank puts it more sucicintly – here US persons are not wanted – which covers anyone with US “personhood” wherever they may reside and whatever other “personhood” they may have…foreign banks seem to be accepting the US definitions of “personhood”.

    3. Important information for U.S. and U.K. persons

    The information on this web site is not directed at and is not intended for persons, whatever their citizenship, who currently are in the territory of the United States, nor is it intended for U.S. residents, partnerships or corporations organized or incorporated under U.S. law or other U.S. persons ( as defined in Regulation S under the U.S. Securities Act of 1933, as amended), and shall not be deemed an offer to provide or sell, or the solicitation of an offer to acquire or purchase products or services in the territory of the United States or to such persons, residents, partnerships or corporations. No such persons, residents, partnerships or corporations may acquire or purchase products or services by means of this web site, and no offers to acquire or purchase products or services made by such persons, residents, partnerships or corporations by means of this web site will be acknowledged or accepted.

  13. It seems that the most effective tool for attacking Americans is NOT terrorist acts, but FATCA backlash that shuts them out of foreign financial institutions.

    It seems an irony to me that while Treasury is busy imposing financial sanctions on Iran to bring them to tow, all of Europe (our friends) are now imposing financial sanctions on all individual U.S. Persons as a result of all U.S. banking regulations, with FATCA being the latest monster!

  14. More innocent people waking up to find that the US has NOT bothered to educate immigrants to the US that suddenly, their pre-exising accounts -(ex. retirement, insurance) – particularly the ones that cannot be accessed and cannot be dissolved prematurely – held in their country of origin are now toxic ‘foreign’ accounts. Their US resident spouses have no idea about FBAR and FATCA either:

    …”What on earth do I do regarding this facta/fbar. I am very scared and actually was sick tonight reading about it.

    My husband is a US citizen and we’ve never heard of this before now….”

    http://britishexpats.com/forum/showthread.php?t=810785

  18. @JustMe, to reply to them requires registration – (including a confirmation e-mail) at the site. Perhaps some of the expats reading here may already be registered there and would refer the poster to IBS.

    I see that the poster has put that message on multiple sites.

  19. I’ve also posted this on the “Time for a Second Anti-Fatca” thread. This could be an opportunity for some of the Toronto “Brockers” to educate the masses.

    This Saturday, on Toronto NewsTalk am 1010, tax firm Altro Levy will be hosting the “Ask The Experts” call-in show from 5-6 pm. The firm deals with Canada/US cross border tax issues included the beloved “taxation of US citizens in Canada”.

    http://www.altrolevy.com/
    http://www.newstalk1010.com/Hosts/AskTheExperts.aspx

  21. Canada’s newest Supreme Court judge, plucked from the semi-retired list, adds conservative tendencies to a growing conservative tilt on the country’s highest court.
    … Roderick Macdonald, a McGill University law professor, said the appointment may signal that the government feels a need for expertise in international commercial law, international dispute resolution and the relationship of international norms with domestic norms.

    http://www.theglobeandmail.com/news/national/harper-nominates-marc-nadon-for-supreme-court/article14602137/

  22. @allou & Just Me
    I think that Nordea warning explicitly left out US persons living in Scandinavia. I can see that they excluded trusts and estate connected with USA, but did not exclude US persons in Scandinavia.

    Swedbank was the subject of a letter that Sophie Int Veld forwarded to EU parliament which received a non answer from Parliament.

    The Swedbank policy was also sent to the Discrimination Ombudsman DO in Sweden who stated that no it was not discrimination, although my friend from the immigrant ghetto told me that DO always responds that way.

    I actually suspect that they have been around awhile. Since the 1980’s, you couldn’t get a bank account in Sweden without a “person number”. Likely, they had also been following US Shenanigans for a long time, such as KYC Know Your Customer which was drilled upon the worlds banks sometime prior to 2002.

    A bank CFO friend of mine said that current law is that Sweden cannot demand an answer about your nationality, although they could ask.

  25. USA has excluded itself from Scandinavian business. US persons cannot run businesses in Scandinavia, lest they must file more than 800 hrs of IRS personal taxes. US business entities can’t get bank accounts. US businesses would need to register their companies with Scandinavian tax bureaus, but in most Scandinavian countries, a bank account is required in order to maintain a reserve and pay taxes.

    The only thing USA could have is a large corporation in Scandinavia, but with corporate taxation rules, the money can’t be repatriated to USA.

    The smartest solution is what oil suppliers such as Weatherford and Transocean have done which is to relocate corporate center to Switzerland.

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