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.
Wow, Mark Twain! The history I never learned is truly stunning. Thank you for posting Richard Byrd’s 1909 prophecy!
Now it is complete. US persons living in Kuwait will be tracked by their local Islamic Kuwait banks. Their social security numbers, bank account values, addresses, local bank account numbers, and names will be stored in those banks without security controls. A thumbdrive in Kuwait is now a very very valuable item. Americans lives are being put at risk by FATCA, 2010 HR 2847. …
http://www.kuna.net.kw/ArticleDetails.aspx?id=2372433&language=en
@Mark Twain
So basically… Fatca is doing all the work for the terrorists then… Psst.. want to make a few bucks… use this thumbdrive… download some info to it… no one will miss it… its not secure… nothing will happen to u… look for a file called Fatca… its not a big deal…. Mr Janitor… geez….
Not directly related to FATCA, but could show what’s likely to be coming your way wherever you live. The HMRC is considering selling its UK taxpayer info to interested parties:
http://www.bbc.com/news/uk-27086401
If this actually happens, how long before other countries jump on the “sell our info” bandwagon. Disgraceful.
yup. and…
The KGB had never been truly successful in tracking US citizens in Russia, but now, due to the US law FATCA, 2010 HR 2847, the Russians will be able to keep complete records upon US personas social security numbers, bank asset values, bank account info, addresses, and telephones. The USA has helped the KGB to accomplish in 2014 what the KGB has been trying to do for decades—to track the most sensitive personal information of US citizens!!! …
http://www.themoscowtimes.com/business/article/finance-ministry-wants-foreign-banks-to-help-russia-comply-with-fatca/498403.html
“The Next Shoe Just Dropped: Court Denies Attorney-Client Privilege”
– http://www.zerohedge.com/news/2014-04-19/next-shoe-just-dropped-court-denies-attorney-client-privelege
WSJ: New Tax Risks for Owning Overseas Assets ‘Be alert to anything in a client profile that suggests international activity.’
@Calgary411
I would soooo love to comment in the WSJ, can’t seem to find a way without signing up….???
I apparently did sign up at one time (ages ago when I was interviewed and in one of their stories) but it won’t accept my login password for this. The author’s email address is: arden.dale@wsj.com.
If anyone is not able to see the actual WSJ article, it can be accessed by entering into a “google news” search.
US Securities Industry complains that the July 1st FATCA deadline can’t be reasonably met. Will the US industry get what the US refuses to extend to those ‘foreign’ bodies?
‘SIFMA seeking relief from FATCA deadline; Looming July 1 implementation deadline raises concerns’
By James Langton | April 21, 2014 15:40
“The U.S. securities industry is requesting relief from the forthcoming FATCA deadline, citing the operational challenges facing the industry, and warning this could disrupt financial markets.
The Securities Industry and Financial Markets Association (SIFMA) said Monday that it has submitted a letter to officials at the U.S. Department of Treasury and the Internal Revenue Service (IRS) requesting targeted relief from the July 1 implementation deadline for the Foreign Account Tax Compliance Act (FATCA).”………….
and,
http://www.sifma.org/issues/item.aspx?id=8589948630
April 17, 2014
‘SIFMA Submits Comments to the US Treasury and the IRS Requesting FATCA Transitional Relief’
@ badger
Reciprocity means nothing to the USG. Do unto others what you have no intention of doing unto yourself. That’s how perverted the golden rule has become to the USG.
Moscow Fears FATCA Sanctions Over Crimea Crisis
The Securities Industry and Financial Markets Association (SIFMA) Calls for Targeted Relief on FATCA
The article also notes that more than 40% of global GDP outside the Unites States is generated in countries without a Model I or II IGA agreement in place.
I’m not sure where else to post this, so I will post here. It has been reported on Radio New Zealand national news this morning that one of the major banks here (ANZ) published changes to it’s credit card conditions in newspapers published on Easter Monday. Part of the text is as follows:
FATCA has been cited as the reason for this and there have been Privacy lawyers claiming that this change is too broad.
I’m not sure why ANZ has chosen to make these changes to credit card products, as I didn’t think these were even “reportable accounts” under FATCA. Just another step towards the total surveillance state.
LInk to the ANZ report described above (click “play”):
http://www.radionz.co.nz/national/programmes/morningreport/audio/2593534/anz's-notice-'right-up-there-with-the-acc-privacy-waiver‘
European Commission is soliciting input on the “Tax Issues of Cross-Border Citizens”, while Canada and the US work to ‘integrate’ and ‘harmonize’ our common border – subordinate to US interests and specifications, while the US erects even higher exit and tax barriers to mobility via US extraterritorial taxation. AmCham and other organizations want greater ease for businesses seeking to operate across the Canada/US border, but individuals will travel and relocate less due to FATCA and US CBT.
Meanwhile, the newest US Ambassador/Chief Propagandist and Asset Exploiter appointed to Canada embarks on the latest rounds of mutual BS and pretense that FATCA does not exist or offend, and gives Harper his wishlist of Canadian things to surrender immediately to the US on:
“……. the U.S. ambassador described the relationship between the U.S. and Canada as “special but also enduring.”
“The relationship remains strong,” he said
“I believe that individual disagreements enhance the enduring strength of this bilateral relationship, as only true friends have the courage and trust to be honest with one another,” Heyman said.
He spoke about the $2 billion in goods that flow across the shared border, shared resources and military co-operation with the North American Aerospace Defence Command (NORAD.)
“There is more we can and will do together. I look forward to working to drive outcomes,” Heyman said.”
http://www.cbc.ca/m/touch/news/story/1.2598913
If you want to tell him what you think of his plan to “drive outcomes”; apparently both he and his wife are active on Twitter https://twitter.com/BruceAHeyman . Maybe ask him to be “honest” with Canadians about what his master and he intend to do to address the soon to be FATCA-infested Canadian savings and accounts of the “Canadian Grannies” and Canadian citizens that his predecessor advised to “sit tight”.
When will we get a “cross border commission” to look into the “tax issues of cross-border citizens” in Canada? OOps, I forgot, Harper and Obama have agreed to pretend that the offensive US extortion and invasion of Canada via FATCA and CBT doesn’t exist. Because of the “enduring” and “special relationship” we have with the US.
re the EU commission;
from Allison Christians’ blog:
http://taxpol.blogspot.fr/2014/04/european-commission-seeks-input-on-tax.html
Wednesday, April 23, 2014
‘European Commission Seeks Input on Tax Issues of Cross-Border Citizens’
“The European Commission is seeking consultation through 3 June 2014 on the problems faced by “cross-border citizens.” They desire input from “[a]ll stakeholders – citizens, EU countries, tax administrations, governmental and business organisations, tax practitioners and academics.” “
http://www.tax-news.com/news/Italy_Consults_On_FATCA_Agreement_With_US____64492.html
“On April 23, the Italian Ministry of the Economy and Finance began a consultation on the terms of the inter-governmental agreement (IGA), signed on January 10 this year, for the implementation of the Foreign Account Tax Compliance Act (FATCA) between Italy and the United States.”
“All interested Italian stakeholders are requested to send their comments on all, or particular clauses, of the FATCA IGA by May 8, 2014.”
Any Italians interested in submitting something?
(Note: I posted also on other IBS threads as this is relevant to other conversations and resources here.)
http://fordhamilj.org/files/2014/04/Ray_FILJ_GettingCaught.pdf
http://fordhamilj.org/articles/getting-caught-between-the-borders-the-proposed-exemption-of-the-canadian-mutual-fund-from-the-passive-foreign-investment-company-rules/
Stephanie Ray, Comment, Getting Caught Between the Borders: The Proposed Exemption of the Canadian Mutual Fund from the Passive Foreign Investment Company Rules, 37 Fordham Int’l L.J. 823 (2014)
Article details US harsh extraterritorial punishment of Canadians deemed USTaxablePersons living in Canada who have saved using local Canadian mutual funds, and connects to upcoming implementation of FATCA in Canada:
A must read – though it does not really acknowledge and highlight CBT, and the fact that many of those they speak of, who are saving using Canadian mutual funds are actually Canadian citizens and PRs, who are TAX RESIDENT inside Canada and who are being deemed UStaxablePersons. Does describes how this constitutes double taxation, etc. Good footnotes.
May help those making the anti-FATCA argument to their MP as well as that the current Canada US Tax Treaty is full of gaping double tax opportunities for the US, along with the fact that it does not protect our registered accounts like the RDSP, RESP, TFSA, etc.
Conservative MPs are promulgating the talking point that the current tax treaty ‘protects’ us from US double taxation. This is not the case, and the example of the US punishing us and preventing us from investing locally – in CANADA, via CANADIAN mutual funds is a very good illustration of that. This article furnishes ample and irrefutable evidence that the US intended to prevent USPs from investing in Canadian mutual funds – knowing that all those living outside the US with US status would also be punished from what is for us a local investment. That the US should prevent Canadian citizen and PRs resident in Canada from investing in our own local economy is unacceptable. And further provides proof that the current government and the late Finance Minister have known of the serious deficiencies with the Canada-US Tax treaty, which they did not address, PLUS they willfully added FATCA on top via the IGA. There is no defence that the current government can make to the layers of injury they have allowed the US to levy against Canadians, nor for the IGA they signed that enacts a made-in-the-US domestic law and implements it on Canadian soil. It is exceedingly disingenuous for Conservative MPs to state that they cannot do anything about US laws, since they voted for the FATCA IGA to be in force in Canada. And support the changing of Canadian laws to implement it.
Australia signs IGA. Submissions open until 9th May. http://www.treasury.gov.au/ConsultationsandReviews/Consultations/2014/FATCA-intergovernmental-agreement-with-the-United-States-of-America
The accompanying MOU (found here http://www.treasury.gov.au/Policy-Topics/Taxation/Tax-Treaties/HTML/Intergovernmental-Agreement) appears to allow them until Sep 2016 to pass the legislation.
Interesting article:
http://www.business-standard.com/article/markets/nris-india-mf-play-to-get-thin-as-us-fatca-kicks-in-114042901169_1.html
Highlights
“Indians residing in America might, from July, find it tough to invest in products offered by the Indian mutual fund (MF) sector.
The Foreign Account Tax Compliance Act (Fatca), that country’s new anti-tax evasion law, which takes effect in two months, is going to result in increased costs for fund houses here. So, some even contemplate not accepting any investments from non-resident Indians (NRIs) based in the US.”
And the article ends with:
“Meanwhile, fund houses have been looking to expand their reach beyond the US to places such as Europe and Japan. Franklin Templeton, Religare Invesco and JPMorgan have already launched offshore funds focused on European equities. Reliance MF is looking at Japanese equities.”
From the article:
Huh? That’s not how it’s supposed to work. Canadians providing Canadian addresses still get FATCA’d.
Some articles by Robert Wood:
http://www.forbes.com/sites/robertwood/2014/04/22/offshore-accounts-can-mean-jail-and-not-just-in-u-s/
http://www.forbes.com/sites/robertwood/2013/12/04/what-to-say-when-not-if-your-offshore-bank-asks-are-you-compliant-with-irs/
http://www.forbes.com/sites/robertwood/2013/04/29/despite-offshore-haul-irs-hunts-quiet-disclosures-first-time-fbars/
http://www.forbes.com/sites/robertwood/2014/04/07/incredibly-48-nations-embrace-fatca-to-reveal-u-s-depositors/
Watch now, or write clerk Reynolds for transcript
http://www.parl.gc.ca/SenCommitteeBusiness/Notice.aspx?parl=41&ses=2&comm_id=13&Language=E&meeting_id=15039
http://senparlvu.parl.gc.ca/Guide.aspx?viewmode=4&categoryid=-1&eventid=9412&Language=E
Wednesday, April 30, 2014
1:45 PM
Televised live on PTN
Link to ParlVu for this meetingVideo Webcast
Location: Room 160-S, Centre Block
Clerk : Jodi Turner (613) 990-4995
Agenda
1. Subject-matter of Bill C-31, An Act to implement certain provisions of the budget tabled in Parliament on February 11, 2014 and other measures Part 5, Clauses 99 to 101
Witnesses
Department of Finance Canada
– Brian Ernewein, General Director, Tax Policy Branch
– Kevin Shoom, Senior Chief, International Taxation and Special Projects
– Ted Cook, Senior Legislative Chief, Tax Legislation
Came across this online appeal for residents of Israel to mount a letter writing campaign against FATCA, directed to their US representatives and I guess, any other US politician:
from AACI Association of Americans and Canadians in Israel
http://www.aaci.org.il/articlenav.php?id=504
The Honorable (Name of Representative or Senator)
United States (House of Representatives or Senate)
Washington, DC
(Date)
Re: Revise FATCA Now!
Dear (Name of Representative/Senator)
As one of your constituents currently residing in Israel, I would like to call your attention to the serious negative impact that FATCA is having on me and other Americans living outside of the United States. The legislation – designed to catch tax cheats – has turned the lives of hard-working Americans living abroad into nightmares.
Because complying with the current FATCA regulations is so onerous and costly for banks worldwide, many banks (including those in Israel) are asking clients with a U.S. Passport or U.S. Green Card to close their existing accounts. They are even refusing to open any new accounts for U.S. citizens abroad. Due to FATCA, Americans living and working overseas are being refused local mortgages, pension plans and life insurance policies.
I urge you to work for the revision of FATCA. American Citizens in Israel have a proud history of being among the top 5% of overseas voters. We pay attention to the actions of our U.S. government representatives and vote accordingly.
Sincerely yours,
(Your Name)
(Your address in Israel)
@ badger
If anyone can get an exemption it will be them because they hold way more sway in US politics than 1 million in Canada and 1 million in Mexico combined.