Media and Blog Articles Open for Comments – Part 3 of 11 (Year 2016)

2,818 thoughts on “Media and Blog Articles Open for Comments – Part 3 of 11 (Year 2016)”

1. Deloitte comments on final FATCA regulations, including the following paragraph:

   First initiated to remove compliance impediments posed by privacy laws, the IGA model is likely to mature into a global information reporting framework. The final regulations introduce the Global Intermediary Identification Number (GIIN) and place great emphasis on the relationship of the regulations with the two forms of IGAs (Model 1 and Model 2). In particular, the final regulations make clear that FFIs in Model 1 IGA jurisdictions will be governed by the laws enacted in their own countries while those in Model 2 IGA jurisdictions will follow the final regulations. However, the final regulations do leave open the opportunity for foreign governments to negotiate for the inclusion of terms that would allow entities within their jurisdiction to follow more beneficial requirements in the final regulations. The final regulations’ emphasis on IGAs may signify Treasury’s realization that IGAs — and not the final regulations — may be the path forward to achieve FATCA’s goal and establish a global information reporting framework.

   https://www2.deloitte.com/content/dam/Deloitte/se/Documents/financial-services/FATCA_In-depth_Analysis_us_tax_130422.pdf

2. Key action points for US citizens facing up to Fatca – See more at: http://www.international-adviser.com/analysis/1033025/key-action-us-citizens-facing-fatca#sthash.0gOFwc3J.dpuf

   http://www.international-adviser.com/analysis/1033025/key-action-us-citizens-facing-fatca

3. Here’s Keith Redmond’s second interview on IRS Medic. Once again he proves himself to be an excellent spokesman for “the cause”. This interview focuses on “Accidental Americans”.

4. The literal-minded, the compliance industry and the terrified/naïve US person abroad tend to make this whole mess worse all the time.

   What ever happened to the do-it-yourself post-card tax return?

   Here’s my suggestion:

   What are your various sources of income, what can you deduct, what’s the net. Calculate how much you owe according to the following table. 2 basic questions.

   FATCA could be: what foreign accounts do you have (warning, tax evasion is illegal)? If you’ve residing abroad for more than one year and are away from the US for 3/4 of the time, you don’t have to answer the question.

   You don’t have to file taxes starting the first calendar year you live abroad.

5. @Fred
   It will never be simple
   Fatca is less about tax, it is primarily about CONTROL.

6. @Heidi
   I still think it is about the money. Expats are like another huge state. A taxable one.

7. @polly
   Yes, initially about collecting money (mainly penalties)from unsuspecting US persons abroad.
   But after forcing them into compliance there is little to be gleaned from continuing to demand returns from Americans living ordinary lives abroad .They are fully aware of the problems and yet are doggedly unable to let us go on uh. It has become a totalitarian regime. Control is everything.

8. I think Heidi’s right. It’s the only reasonable explanation. Lots of things could be easier and bring in more money. They don’t do it. Complexity is obfuscation and keeps power to those in the know. Heck, nobody except the libertarians seem to be advocating simplicity anymore. It’s all about control and the obsession with gathering data, in turn usable to control and know. The problem is that democracy and freedom depends on the state (among others) NOT knowing everything. The right to privacy seems so quaint now, so eighteenth century. Sad! 😉

   It’s obvious that the uber rich individuals and corporations in the world exploit loopholes to pay fewer taxes. In fact, it might be fun to try something like a flat tax or reduced taxes, but with everybody paying them. I don’t know the numbers but putting an income tax rate at 20% and including hedge fund managers income as income might actually be a huge tax increase for them. Put corporate income tax at 10% with no exceptions, no loopholes, and GE and others would start paying taxes again. Etc.

9. First blood to the Ryanistas? Or was it a deal? Time will no doubt tell, it generally does.

   http://thehill.com/policy/finance/309089-gop-rep-moves-for-vote-on-impeaching-irs-head

   http://www.politico.com/story/2016/12/trump-irs-koskinen-impeachment-gop-232289

10. @fred
    The IRS/Treasury now acts like a Fourth arm of government. It has made unconstitutional
    agreements with foreign govs. It has wielded control through threats of audits of political parties. It threatens the very core of the Constitution. It uses fear to control. I see Trump is treading carefully.

11. killing sparrows with cannon balls:

    http://www.nzz.ch/wirtschaft/wirtschaftspolitik/banken-sollen-eine-neue-steuer-eintreiben-zumutung-aus-washington-ld.132992

    only in german – maybe someone else can translate the essence for general audience. piece does not lack irony to get at the essence of what’s going on.

12. This time we ain’t gonna swollow the turtle:

    http://www.nzz.ch/wirtschaft/kommentare/neue-buerden-fuer-banken-der-unverschaemte-uncle-sam-ld.132976

    — OpEd in German. Worth a translation along with piece above.

13. @Not that Tara – Google Translate is good for a first pass:

    https://translate.google.com/translate?sl=auto&tl=en&js=y&prev=_t&hl=en&ie=UTF-8&u=http%3A%2F%2Fwww.nzz.ch%2Fwirtschaft%2Fwirtschaftspolitik%2Fbanken-sollen-eine-neue-steuer-eintreiben-zumutung-aus-washington-ld.132992&edit-text=&act=url

    and

    https://translate.google.com/translate?sl=auto&tl=en&js=y&prev=_t&hl=en&ie=UTF-8&u=http%3A%2F%2Fwww.nzz.ch%2Fwirtschaft%2Fkommentare%2Fneue-buerden-fuer-banken-der-unverschaemte-uncle-sam-ld.132976&edit-text=&act=url

    Thanks for those – I hadn’t read a clear explanation of what this derivatives thing was about. Apparently, the US government thinks it can set the tax rules for the world with impunity. Never mind that the “income” they want to tax is not taxable in the US under any tax treaty. And, just like FATCA, any foreign institution that processes these transactions must bear the cost of additional compliance, but in this case there isn’t even the fig leaf of reciprocity. The end result will be that institutions will stop trading in derivatives on US equities – this will damage the US market by removing liquidity and reducing demand, not only in the derivatives, but also in the underlying securities.

14. Is it the Equity Derivatives Withholding Tax?

    http://finops.co/uncategorized/equity-derivatives-withholding-tax-remains-taxing/

15. The US asserts the right to force the rest of the world to comply with FATCA and pay the implementation costs – using extortion to do so, but US banks and the US complain when the EU makes regulations;
    http://www.express.co.uk/finance/city/740037/European-Union-angers-Wall-Street-banks-with-new-rules

    US banks argue “An executive at a second US bank said: “Clearly we will argue that it creates conflicts with US legislation and is unnecessary……..””
    https://www.ft.com/content/c0956392-b886-11e6-961e-a1acd97f622d

    So? Easy peasy, just change US laws so there isn’t any conflict right? That is what the US did with FATCA IGAs – demanding that Canada and the rest of the world change local laws to resolve the conflict with an extraterritorially impose US law – with our local FIs lobbying for it behind the scenes – betraying the accountholders and taxpayers and fellow citizens and residents who’d foot the bill for it and have their local legal rights abrogated . And the US and US banks argue that the EU regulations are “unecessary”? That is FATCA in a nutshell – “unecessary” so why should EU regulation of US banks be held to a different standard?

16. Interview with Meadows on the Freedom Caucus’s plans. FATCA repeal not mentioned.

    http://www.politico.com/story/2016/12/obamacare-replacement-freedom-caucus-gop-232215

17. Okay, everyone keep their fingers crossed that the French minister’s meeting re: US extraterritorrial overreach eventually results in positive action.

    Keith Redmond over at his Americans Expatriates facebook page posted (December 11, 2016):

    From Fabien Lehagre:

    Good evening everyone,

    The key issues of the fact finding mission’s report in France on the extraterritoriality of the American legislation will be addressed at a meeting with Jean-Marc Ayrault, French Minister of Foreign Affairs. This meeting will take place on Wednesday, 14 December at 16:00.

    The problems of accidental Americans and especially the solutions envisaged by the minister will be mentioned.

    I will keep you informed of the decisions made by the Minister.

18. Meanwhile, the French government just awarded the Legion of Honour to U.S. Secretary of State John Kerry, who extorted $2350 from every French citizen born in the U.S. who wanted to stop getting harassed by his government
    http://en.rfi.fr/france/20161211-most-french-john-kerry-awarded-legion-d-honneur

19. @Embee

    I don’t know why the French are creating a make-work project for themselves, and not just ignoring the whole thing like the Canadian government’s doing. (sarcasm font)

    I am so ashamed of the Canadian government, past and present.

20. @ Bubblebustin
    🙁 Me too. 🙁

21. @notthattara
    It says that America has acquired a taste for getting money from abroad.
    “auf den Geschmack gekommen”
    Well- did anybody really doubt that a blackmailer who is successful would continue along the same lines? That is the whole thing about blackmailers. They realise their power and then they keep asking for more. They never stop until the jig is up.
    When is the world going to wake up? And besides- America is ruining its economy. People are going to let go of american investments- drop them like a hot potatoe- and then who is going to buy american stocks?

22. and come to think of it- it isn’t the debt. It isn’t the bad economy- it is the other way around. The bad economy and the debt are the result of greed. And this greed and this overspending has been going on for decades. We are watching the downfall of an empire- it is truly so. And that downfall is the product of immeasurable greed. It is why capitalism has gotten so out of hand that insurance companies call the shots instead of the doctors. It is why Wall Street banks created their own downfall. All of it is greed. How terrible. And now to further feed their greed, America is crossing boarders to do so and plundering other countries treasuries. And the whole world is losing its moral compass because the world leader, America, has lost its own. I thought it was globalisation and foreign influences which were creating a lack of morals. No- these are totally home grown.

23. @polly
    Exactly. “Power corrupts and absolute power corrupts absolutely”
    It all stems from the US abandoning the gold standard. They are now in the position of being world’s reserve currency and are printing money like there is no tomorrow and like fools the rest of the world continues to rely on the
    dollar and its financial markets.
    Just read an interesting book by Graham Green, “Dr Fischer of Geneva, or Dr Fischer and the bomb party”. It is based on greed, and the premise that the richer people are, the more they want.

24. Polly: “America is ruining its economy. People are going to let go of american investments- drop them like a hot potatoe- and then who is going to buy american stocks?”

    I keep waiting for this prophecy to be fulfilled but the US just seems to keep going from strength to strength no matter what nonsense it gets up to, at home and abroad. The wake up call has been ringing for some time. When is somebody actually going to pick up the phone? Next month, maybe?

25. @muzzlednomore
    It will take a while to replace the $ as a reserve currency, but it is happening. BNP in both Zurich and London airports were advertising investments using the renminbi
    I think the whole stock market will fall like a house of cards, it’s based on a giant Ponzi scheme.
    Unfortunately others will fall along with it.

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