Liberty and justice for all United States persons abroad

The Isaac Brock Society

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. Interesting how FATCA is characterized in this article from the Bahamas, as offensive, intrusive, imperialistic, etc. but as inevitable. It notes that there has been no group cooperative resistance to FATCA. AND also underscores repeatedly the scope of changes to internal domestic laws that would be required to implement FATCA.

    Worth reading for the blunt characterization.

    http://www.tribune242.com/news/2013/mar/04/attach-law-writers-to-financial-services-ministry/

  8. @Em

    I do have to wonder if Jim Flaherty’s recent health issues while non life threatening are not having something of an effect on all of this. Ted Menzies seems to be stepping in for him quite a bit. Which is fine other than the fact no one other than you and me knows who Menzies is.

  9. for those who have access to Lexis Nexis or the Nova Law Review
    Interesting abstract even if fulltext not available

    The BSA (and now DATCA) and Florida banks.

    https://litigation-essentials.lexisnexis.com/webcd/app?action=DocumentDisplay&crawlid=1&doctype=cite&docid=36+Nova+L.+Rev.+227&srctype=smi&srcid=3B15&key=e0a93f5a5b968b945bd3aa7509bd41ff

    ARTICLE: The Effects the Bank Secrecy Act Has Had on the South Florida Banking Industry and Economy, and How the Newly Proposed IRS Regulation Would Compound Those Effects
    Fall, 2011
    Nova Law Review
    36 Nova L. Rev. 227
    Author
    Ashley L. Fernald*

  10. @Badger

    That cartoon would be a GREAT one to feature here if we could get the rights to show it… Thanks for the link

  11. @Just Me, I always thought that if we could add similar illustrations or cartoons of our own, it would add impact and perhaps visibility for IBS.

  13. @badger and Just Me,

    Love, love, love the cartoon!! Thanks. And, the latest from Allison Christians. Ah, yes, the US Constitution.

  14. @calgary,
    Would that Prof Christians would be joined by others in academia to raise the alarm. Surely there are others in the US. And, where are our Canadian equivalents?

  15. @badger… Regarding Cartoons, I agree. Wished I had the talent, or someone commenting here did.

    Allison also posted that piece on her web site.

  16. Thank you for keeping me updated about your thoughts on the taxation of Americans living abroad. I appreciate hearing your support for H.R. 597, the “Commission on Americans Living Abroad Act.” I also appreciate hearing your continued support for repealing the Foreign Account Tax Compliance Act (FATCA).

    H.R. 597 establishes the Commission on Americans Living Abroad which shall conduct a study of how federal laws and policies affect U.S. citizens living abroad, including civilians and members of the Armed Forces. H.R. 597 is currently pending with the House Committees on House Oversight and Government Reform; House Financial Services; House Ways and Means; House Judiciary; House Administration; House Energy and Commerce; House Education and the Workforce. Please know that I will keep your support for H.R. 597, and repealing the FATCA, in mind should the Senate consider tax legislation that would impact Americans living abroad.

    Thank you again for keeping me up to date on your thoughts about taxes. I value your input.

    John Barrasso, M.D.
    United States Senator

  17. read it twice, though, it says he appreciates my support. It doesn’t say he supports it. It acknoledges receipt, which is more than what I got from Florida.

  18. I was just thinking about what might happen when a Canadian bank discovers a ‘US person’ in their midst who has spousal RRSP’s contributed by a spouse who is Canadian and only Canadian. In the event that the ‘US person’ refuses to sign a privacy waiver, I presume the bank will force withdrawal of those funds which could cause huge tax implications to the Canadian-only spouse. I can imagine that a lawyer would have a field day with that one. Is the Canadian government going to sit idly back and allow this scenario to play out?

  20. Chicago Tribune: “U.S.-China anti-tax evasion deal seen as crucial, but elusive”

    http://www.chicagotribune.com/business/sns-rt-us-usa-tax-fatcabre92c13b-20130313,0,7722842.story

    From the article:

    “The success of a broad U.S. crackdown on offshore tax dodging will be determined in part by China’s cooperation, but talks with Chinese officials are making little headway, former U.S. Treasury Department officials and tax professionals said.”

    “One obstacle in the Chinese talks is likely that China wants, in return, more tax information than U.S. officials are willing to share about Chinese citizens who have assets in the United States, accountants and tax lawyers said.”

    “China is seen as a critical part of the FATCA puzzle not only due to the country’s own global economic prominence, but also because of its sway over Hong Kong, a major money center.”

    “It was unclear whether Hong Kong may be able to negotiate an IGA on its own with the United States. Hong Kong became part of China in 1997, but retained its own currency and local government.”

    “Foreign countries have pushed, with limited success, for reciprocal information sharing, but generally IGAs have not allowed an equal two-way sharing of taxpayer information.”

    “With IGA negotiations in mind, the Obama administration is considering asking Congress for the power to require more disclosure by U.S. banks of information about foreign clients’ accounts to those clients’ home governments.”

    “The Chinese are thought to be seeking more information about their citizens’ U.S. accounts than previous IGAs have allowed.”

  21. @DukeOfDevon,

    I wrote that comment regarding my concerns for RRSPs BEFORE we got the good news yesterday in the Vancouver Sun article. I became exceedingly less paranoid, after I read that, and managed to convince myself that RRSPs were probably safe, thus my conflicting posts.

    Just curious, what is your opinion on crossing the border with a Canadian passport? I will have to at some point, and am wondering what’s the worsts thing that could happen? If its just a matter of not being allowed in, I can handle that.

  25. From the above cited Chicago Tribune article: “Like the United States, China taxes citizens on worldwide income. So China should be interested in getting tax information about its citizens’ U.S. investments, tax experts said.

    This is the first time I’ve heard that claim. Is it true?

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