FATCA Discussion Thread (Ask your questions) Part Two
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.
@MedeaFleecestealer..
It is just the continuing development of GATCA which I document by placing new articles on this thread…
http://isaacbrocksociety.ca/2012/03/27/a-global-fatca-in-the-future/
GATCA is the OECD wet dream.
@MedeaFleecestealer
If the US agreed to work with the OECD on a genuine multi-lateral basis and scrap CBT I don’t think people would have such an issue with this. It is CBT and the unilateral imposition of FATCA that causes almost all of the issues.
@northernstar, hang in there. This is all enough to make us so preoccupied that it is hard to think of other things. Life has changed for many of us. It still seems unthinkable that in order to merely have a normal life in Canada that we have had to renounce or relinquish our US citizenship or apply to get CLNs in order to prove it – with all the hoops and forms and costs and stresses that entails.
And for everyone that doesn’t get it, we meet someone that does. I just recently described this to another local Canadian (dual of another non-US country) who got it. They promised to tell everyone else they know, and have a wide social circle, so another set of ripples will go forth. They agreed to speak to our local MP too. And have US relatives.
@badger
I am hanging in there (hotel Oblivion) and having a toast to my brocher friends.
I am glad you met someone who gets it.. I hope the ripple goes far. We need to find more ripples. But I am so thankful I don’t have to through this alone. Glad your friend will speak to their MP. Most I know won’t even try to email or call. Even before FATCA came up I was a emailer and caller of my MP.
@all
Thinking of the lyric of Hotel California. Last line you can checkout any time you like but you can never leave.
GATCA and the OECD will enact what matches the administration, and also its TPP objectives—-binding legislation above the constitution which requires only Senate approval in a simple majority, all to the credit of the one sitting on top of the heap.
@ Just Me & Osgood, yes, once the US let the cat out of the bag it was a certainty that others would follow suit, especially given how cash strapped all the countries are at the moment. Even if FATCA gets repealed something similar will take it’s place in the world, it’s just a matter of time. But I agree, it’s the CBT that’s causing the real problem here. The worry is that more countries will take this up, rather than the US junking it.
Will we see more of this?
Sample result of Moodys Investor Service noting the impact of FATCA on the subject of one of its ratings; …”The Foreign Account Tax Compliance Act (FATCA), US legislation, may impact the transaction. Moody’s is currently reviewing the potential impact of FATCA in particular cases and in particular jurisdictions. Should this transaction become subject to US withholding tax under FATCA the rating of the Notes may be negatively impacted. “.
https://www.moodys.com/research/Moodys-assigns-definitive-ratings-to-RMBS-notes-issued-by-Lowland–PR_284352?WT.mc_id=NLTITLE_YYYYMMDD_PR_284352
Thanks, badger, for introducing another very interesting layer of complexity of FATCA and US Citizenship-Based Taxation law for businesses, people running those businesses, employees of those businesses (some of whom will have pensions that will be affected). How will the big three U.S. credit rating agencies http://en.wikipedia.org/wiki/Big_Three_%28credit_rating_agencies%29 and others factor into all of this. Here is a D&B page that I found that should also be of interest in its flowchart regarding FATCA http://www.dnb.co.uk/solutions/governance-risk-compliance/fatca, described as
“Is a Canadian FATCA coming soon?
The Canadian government surely is not going to sit by and see its neighbour collect billions from its citizens living abroad and do nothing. So while Canada doesn’t have its own FATCA yet, it does have a FATCA-like system that went into high gear earlier this year after the budget was read.
The country is trying to collect money from the many Canadians living abroad and Canadian residents.
In the 2013 budget, the Canadian government instituted a new requirement for certain financial intermediaries to report to the Canadian Revenue Agency – the Canadian equivalent of the American IRS – all electronic funds transfers of $10,000 or more, and instituted a new whistle-blowing programme to stop international tax evasion.
As part of the new initiative, Canada has foreign-income verification reporting for 2013. If a Canadian who is resident in Canada owns the cumulative property, in excess of $100,000, at any time during the year, they must declare it. Failure to do so will result in a fine of $25 per day.
The properties that the Canadian government is interested in are: bank accounts, shares in foreign corporations, shares of Canadian corporation on deposits with foreign brokers, debts owed by non-residents, interest in partnership that hold specified foreign property, interest in foreign mutual fund, foreign lands and building and tangible and intangible properties located outside Canada.”
http://www.iriejamradio.com/what-s-trending/jamaica-gleaner-latest/1684-fatca-rapidly-becoming-the-global-model-for-combating-offshore-tax-lead-stories-jamaica-gleaner-wednesday
The Associations requested the following modifications to the Phased FATCA Timeline:
• Timeline for Withholding — an additional six-month extension for withholding that is scheduled to take place beginning on July 1, 2014. In addition, the definition of a grandfathered obligation (including associated collateral) should be extended to obligations outstanding as of January 1, 2015.
• Expiring Withholding Documentation — an additional six-month extension for withholding documentation set to expire on June 30, 2014 pursuant to Notice 2013-43, so that such documentation would expire on December 31, 2014.
• Due Date for Reporting — FATCA reporting for 2014 (via Form 8966) should apply only to accounts designated by a participating FFI as held by a U.S. citizen or resident on December 31, 2014, and identifiable via electronic search. Also, that reporting for calendar year 2014 be delayed one year so that reporting for calendar years 2014 and 2015 would be provided by March 31, 2016. All other FATCA-related reporting requirements should be postponed to be effective for payments made beginning in calendar year 2015.
• Date of New Account Opening Procedures — a six-month extension to January 1, 2015 to implement new account opening procedures. However, firms should have the authority under guidance to be issued to implement new account on-boarding procedures before that date (removing those accounts from the preexisting account remediation pool).
• Obligations on Preexisting Accounts — due diligence for prima facie FFI should be required by July 1, 2015.
http://www.aba.com/Tools/Function/Acct/Documents/FATCAJointTradesLetter111813.pdf
@bubblebustin…
Thanks for that. I added that one over at the GATCA thread.
BTW, has anyone posted the Mopsick latest? Will you be caught?
http://bit.ly/IQNfTw
I have a question for the board here.
This is the situation that my brother finds himself in.
Our mother was an American citizen who lived abroad (Canada) from the age of 28 on. We were born on Canadian soil and have never really considered ourselves American. She got us American citizenship when we were infants. But he has never lived in the USA. He has only been occasionally to visit family or holiday. Never more then a month at a time.
He now has children, one of whom is autistic. Are they considered to be US Persons because of him or is there enough separation that if he renounces his kids won’t find themselves under this draconian system. I am really concerned for his autistic child because she has never been in America and will probably never go down there without him or his wife.
Any advice would be appreciated. Also, I understand that this is informational only. Nothing can be construed as being legal advice and all of the content here is for inform and no implied consent is taken.
I would also be interested in joining a protest or something like that. @411calgary. I am assuming you live in or near Calgary. I am 1.5 hours outside of Calgary and would be willing to come and help with some protests or anything other suggestions that people have.
Cheers
krackerjack121,
This link will show that your brother’s daughter, born in Canada, would not acquire citizenship from her father who never lived in the US. If anyone else reads it differently, chime in.
http://www.uscis.gov/us-citizenship/citizenship-through-parents
The child would acquire US citizenship if:
One parent is a U.S. citizen at the time of birth and the birthdate is on or after November 14, 1986:
and…The parents are married at the time of birth and the U.S. citizen parent had been physically present in the U.S. or its territories for a period of at least five years at some time in his or her life prior to the birth, of which at least two years were after his or her 14th birthday.
Thank you for your interest in joining a protest in Calgary should another occur. Nothing on the horizon here now, but I will keep your interest in mind. If you are ever in Calgary, would also love to get together with you and any others over a coffee. Again, thanks!
@calgary411
I would agree with you, it doesn’t seem that Krackerjack121’s brother can pass US citizenship to his children by descent, as he was born in Canada and never lived there long enough to qualify under the physical presence test.
@just me
Mopsick, like so many others, doesn’t consider that even without penalties, many people simply don’t have the resources to go through OVDI or even Streamlined, or may have liabilities that will bankrupt them because of decisions they made while unaware of their tax obligations to the US.
@ Calgary411 and bubblebustin
Thanks for the information. I appreciate it for clarifications sake. I was not sure if or how this would affect my niece. But reading about some of the others experiences here on the site got me it got me a little worried that they might consider her an US person. Thankfully though it appears that this is not the case.
Would love to get together sometime for a Coffee.
Cheers.
Why not steal money from everybody instead of just immigrants and emigrants
http://laroucheirishbrigade.com/2013/10/17/imf-first-pushes-then-repudiates-10-levy-on-private-accounts/
This guy doesn’t understand. He asks “Will FATCA Ever Go Into Effect?” and then argues that the sooner the better. No idea of the harm, the impracticality, the cost, the uselessness. He must be part of the compliance complex.
http://www.forbes.com/sites/taxanalysts/2013/12/12/will-fatca-ever-go-into-effect/
More from whom knows of what he speaks:
Andrew F. Quinlan: FATCA System Fails Government Probe, Threatens Privacy
A quick comment that Just Me or someone may post. (I have to get ready and out of here for appointments this morning and then for Christmas lunch for the great organization my son works for.)
This came offline regarding Russia caving in to FATCA: http://rbth.ru/news/2013/12/13/russian_premier_gives_finance_ministry_until_jan_20_to_draft_fatca-linke_32552.html
Related from Just Me:
Just Me then comments at Brock:
Just Me, thanks for more of your insight, putting the puzzle pieces together!
http://www.finance.senate.gov/newsroom/chairman/release/?id=f946a9f3-d296-42ad-bae4-bcf451b34b14
The Senate International Corporate Tax Reform
Getting past the ingenious ideas of making international business for USA even more cumbersome (whilst tax havens such as Sweden have LOWERED corporate tax rates to 22%; USA is looking for more ways to jam down the 39% on every business slave it has, and to prevent “erosion of its tax base” by letting the corporate slaves free. Let’s get beyond standard lunacy of bankrupt govts.
I read through this gobblydeegook. There is increased paperwork for PFIC’s and businesses. Likely this will make it more impossible for a US person to own a hotdog stand where he lives. It already is about half a man-year of calculated for making to have your hot dog stand today.
It appears that they are segregating the exclusions based upon more subcategorizations–making it more difficult to take credits.
Otherwise, I find it quite impossible to read—-I just read more sucking money into the big black hole.
“Wealth” Advisor / Financial Planner point of view. Yes, they’d better get this right for the people to whom they give advice. http://www.accountancyage.com/aa/feature/2319041/get-your-fatca-facts-right
Stomachs, hearts, brains: what do ours tell us? http://www.mondaq.com/x/280910/tax+authorities/Caymanian+Compass+Online+Poll+Cayman+Should+Reject+FATCA
and:
http://rbth.ru/news/2013/12/13/russian_premier_gives_finance_ministry_until_jan_20_to_draft_fatca-linke_32552.html
And, now to bed, perchance to sleep so tomorrow may be a better day for our continued fight.
@ Calgary411
“We need to accept it and get ready” . So plan your plan. Most will be renouncing/relinguishing so that we can get on with our lives.
Much to learn from the Obamacare cockup
“FISMA was enacted in 2002. Under FISMA, federal agencies are required: “to develop, document, and implement an agency-wide program to provide information security for the information and information systems that support the operations and assets of the agency, including those provided or managed by another agency, contractor, or other source.”
Doubt that the FinCen FBAR site or the FATCA FFI site meet these criteria. This could be pushed.
http://dailycaller.com/2013/12/11/obamacare-marketplace-violates-federal-security-law/#ixzz2nTA9XDuI