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The Isaac Brock Society

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

You can access all years at this link: Media and Blog Articles – Links for All Years

 If clicking on a comment link brings you to the wrong comment, click here  to get on the most recent page of comments.(alternatively, to reach the most recent comment page, go to  the url in the bar at the top of your browser and delete everything after http://isaacbrocksociety.ca/media-and-blog-articles-open-for-comments-part-3-of-3  )

Media and Blog Articles

EmBee suggested that it would be good if there was a thread for new articles, so that people would be aware of where to comment. So, I created this permanent page.  You could mention such articles in the comment stream for this page, or if I see one on another thread, I can copy the link to here. I’ll keep adding to the list, but not deleting, so we’ll end up having sort of a  “bibliography” of FATCA/CBT articles.  [Note:  Some articles are not open for comments]

For more articles on FATCA, enter FATCA into Google then click on the link “more news for fatca” just below the most recent featured article.

Note also: JC suggests to see #FATCA on Twitter for latest breaking news. JC finds that is quite a good source and there even are some international articles that one may read using Google Translate.” Others may help certain tweets and articles remain in elevated position by retweeting them.

Be sure to read the comment stream for this thread — there are usually very recent articles mentioned there that aren’t on this list yet.

2016.12.29
Switzerland moves further to end bank secrecy, Financial Times, UK.
2016.12.23
How FATCA Infringes and Trammels our Statehood, Stephen Kangal, Trinidad and Tobago News, Trinidad and Tobago.
Barclay’s chief preparing to take a stand against US regulators over unduly high fines to European banks, James Quinn, The Telegraph, UK.
2016.12.22
Canada refuses to name bank that broke money laundering rules 1225 timtes, Mike De Souze, Robert Cribb & Marco Oved, National Observer.
Financial Intelligence agency gave bankers head up about money laundering disclosure, Mike De Souza, Robert  Cribb & Marco Oved, National Observer.
2016.12.21
US citizens may pay double tax on Kahlon’s child savings program, Michael Zeff, Jerusalem Post, Israel.
Applying to be Swiss in the Trump Era, Steve Krump,  SwissInfo, Switzerland.
2016.12.20
File That Tax, Boom Chicago, YouTube, Netherlands.
Tijuana City Councilman Faces US Money Laundering Charges, Sandra Dibble and Dana Littlefield, San Diego Union, US.
2016.12.19
Senate Report Finds IRS Agents Living Large on Public’s Dime, Guillermo Jiminez, Tax Revolution Institute, US.
AG to UNC: Come to Parliament first – a Joint Select Committee to deal with FATCA . . ., Ria Taitt, Daily Express, Trinidad.
Rand Paul criticizes framework of tax reform plan, Naomi Jagoda, The Hill, US.

Articles from earlier 2016 are at this link

Articles from 2015 are at this link

Articles from 2014 are at this link

Media and Blog Articles  thread, Part 1 of 3, is at this link.

Media and Blog Articles thread, Part 2 of 3 is at this link.

 

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

  2. Charl –

    Thanks for the pointer to the latest Robert Wood blurble —

    In fact, you could have your passport revoked merely because you owe more than $50,000 and the IRS has filed a notice of lien. A $50,000 tax debt including interest and penalties is common, and the IRS files tax liens routinely. It’s the IRS way of putting creditors on notice.

    In Passport Tort, that “lien” option looked worrisome — the “or” leading into it smelled like a very important word. Suspicion now appears confirmed.

    Not just the drawn-out due-process option? A back-end quick kicker?

    [Leaving the adhomination tactic to the Broccultists.]
     

  6. I agree, PierreD. One of the best summaries of the Accidental American citizenship conundrum that JC found and put into comment above. It did, though, only refer to those born in the US when those aren’t the only *accidentals*.

    I especially liked the parts regarding the countries we live in and possible solutions:

    The negative financial effects are not just restricted to the ‘Accidental Americans.’ Their countries also suffer, as FATCA represents a raid on resources which European states have encouraged their citizens to save so as to be able to be financially independent in old age. The double tax treaties do not recognize European tax breaks, so the financial support which European governments give their citizens will now be transferred to the US coffers. The burden of filling things such as pension gaps will fall to the European states in which these people are resident and to which they have contributed. Commonwealth countries are also being adversely affected in a similar way, among them Canada and Australia.
    …
    Individual governments could negotiate with the US Government for an amnesty for their ‘Accidental Americans’ who are suffering from this imposed citizenship and the penalties of tax compliance, and could also help enable those innocent accidental citizens caught in FATCA’s net to renounce citizenship in a simple way on a “no fee, no taxation” basis. This could be done via an international treaty – equivalent to that the US has with Canada – whether it be bilateral or on a wider scale; after all, this is not an issue affecting the citizens of just one country alone and so co-ordination between states to address the combined effects of FATCA and US tax law would surely influence the US to correct its position.

    It is a solution with precedent given that there are already treaties in existence between the US and some countries which regulate taxation. For example, articles 24 and 26 of the current tax treaty between Canada and the United States clearly gives the competent authorities latitude to solve double-taxation problems like those that have arisen under FACTA by stating that the competent authorities ‘may consult together for the elimination of double taxation in cases not provided for in the Convention.’

    A further solution could be that the US changes its tax laws from a CBT-based system to an RBT-based system, which would make FATCA rules apply only to US residents, and also exempt ‘Accidental Americans’ who might have a very tenuous historic connection to the US, but have never sought to exercise it. This would bring the US’s tax laws in line with the rest of the world, and would solve the current financial and tax burden because only those who live in the US would need to pay US tax and comply with FATCA if they have overseas investments.

    The final possibility would be to simplify the renunciation process. If the regulatory burdens on non-resident US citizens make it effectively impossible to live with that status, then it follows therefrom that those citizens have the right to an easy and harmless (financially and mentally) way to remove that status. Whilst the time and administrative fees may be a necessary by-product of such a process, the $2,350 renunciation fee is nothing more than a violation of the right to change one’s nationality – a right not only enshrined in US law, but also a basic and fundamental tenet of human rights and freedoms.

    But, is this a correct statement? i.e, for those deemed *Covered Expatriates*?

    The renouncing citizen must also have to have a clean tax record for the previous 5 years and ongoing filing obligations for 5 years after exit.

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  7. Yes, excellent article, JC. I appreciated the discussion of the implications of FATCA for data security/privacy — something not often seen in the wider media.

    Many governments – including the UK’s – have signed up, either without considering the rights of the individuals affected, or following what essentially amounts to coercion. (emphasis added)

  8. Re” 5 years after exit tax. I don’t think that right. I think there is a final tax return. Perhaps the 5 years relates to statute of limitations, as we know renunciation is a separate undertaking than tax compliance.

    Found on Twitter at #FATCA posted by Keith Redmond. I am also on Facebook now with disguised identity, kind of a New Years resolution. I think I got hung up before as they asked for a phone number. Now they say e-mail address or phone number. Very easy to sign up. American Expatriates Group seems to be the place to visit. So I may find articles on Twitter and now Facebook and post here.

  9. In today’s Australian Financial Review there’s an article about Australia’s attempt to collect GST (VAT/sales tax) on goods imported directly by consumers. Currently, there is no GST on imports under A$1000, and the importer (consumer in the case of direct online purchases), is responsible for reporting and paying GST on imports over $1000. In 2017 foreign retailers selling directly to Australian consumers are supposed to register and pay GST on orders less than $1000 (but only if they have total sales of more than A$75,000 per year to Australian customers).

    Gee … an extraterritorial tax grab. Sounds like something we might be familiar with.

    The article is titled Retailers ‘unlikely’ to comply with GST on imports under $1000 and cites some UNSW academics for the (rather obvious) conclusion in the title. (The AFR article is behind a pay wall, but cites an article in the Australian Tax Bulletin that might be more accessible).

    Of interest is the following:

    The Australian Tax Office does not have much enforcement power overseas, even when treaties and other agreements are taken into account, the academics also wrote.

    “A country like Australia cannot – and will not – send its ATO officers to another country to carry out compliance. This would involve a breach of the territorial sovereignty of the foreign country.”

    The quote marks indicate a direct quote from the Australian Tax Bulletin article (which I have not read). I wonder what these academics would say about the “coercion” imposed by the US to ram FATCA IGAs through the parliaments/legislatures of so many countries?

  10. Re: GST on imports. Big problem for Australia. It works within the country as with companies if you don’t report/pay your GST then the tax office may wind up your business or force you to pay. Thus the ATO forces businesses to collect GST under severe threat. And that threat does not extend to other countries.

    In regards to coercion, while there is that aspect in regards to getting countries to sign FATCA IGAs, countries have adapted FATCA IGA as their own law (Tax Treaties the same).

  11. Republicans overseas is having a conference call with Cruz. My submitted question:

    As a immigrant citizen of US who has had a successful work life both inside and outside the US we find the tax burdens on our foreign pension accounts onerous. The risks associated with making filling mistakes are very worrying.
    Many pension type accounts do not receive protection from the various tax treaties and can be subject to terrible sec. 1291 ‘punishment’ PFIC tax. Accounts such as the ISA in the UK or TFSA in Canada.
    While we can close foreign bank accounts easily we can’t do the same with pensions because of age limits.
    Would Senator Cruz ease these burdens? If they can’t be eased could a path be given to get foreign pensions into qualified US pension plans?

  12. @JC also:
    https://www.facebook.com/groups/citizenshiptaxation/ (Of course the BEST site on FB ever) and
    https://www.facebook.com/The-Isaac-Brock-Society-341446319218930/?fref=ts

    And if you are feeling particularly crabby, nice useless places to vent are:
    https://www.facebook.com/DemsAbroad/?fref=nf (Surprised they haven’t booted me off yet. Though useless, I enjoy being annoying. I just don’t want them to think we’ve gone silently into the night. Tricky to find places to comment, not much posted re those actually living abroad. One must get creative to get a point in.

    https://www.facebook.com/groups/56417632570/ (Taxpayer Advocacy Panel) Again, they need to have their feet held to the fire as this FB site is useless also.

    (Ha, I was blocked from https://www.facebook.com/taxjustice/?fref=ts, maybe you can try your marvellous comments here).

  13. @ Karen

    Actually, that is not an extraterritorial grab. If you want to export something to Australia then it has to clear Australian customs. Maybe they should collect the tax that way instead, though, and not require foreign businesses to register.

  15. The statement

    The renouncing citizen must also have a clean tax record for the previous 5 years and ongoing filing obligations for 5 years after exit.

    is simply incorrect. As we all know by now, you are supposed to file 8854 and state you have been compliant for 5 yrs. and we also know there is little they can do if you don’t. There are NO ongoing obligations.

  16. @Tom — I have no problem with them collecting the GST through customs as it enters Australia. My problem is with any expectation that foreign retailers should register for the GST — and allowing the US extraterritorial grab through FATCA.

  18. @Charl I’ll check those Facebook pages out. Still on training wheels there.

    Taxpayer Advocacy is an interest to me. They had that international conference on taxpayer rights which Allison Christians presented. Let’s see if any of that shows up I believe in their annual January report to Congress.

  20. @Calgary411
    FATCA is most likely to blindside those accidentals born in the U.S. because a U.S. birthplace is one of the key things banks will be looking for.
    @Neill
    Good luck, particularly in getting a reform for those unmoveable pensions.
    @JC
    Nice find. My New Year’s resolution is shorter posts. New Tax Notes article mentioned in Twitter feed “FATCA causes turmoil”… Anyone have access and can summarize?
    @Karen
    Can’t see why Australia is going extraterritorial instead of imposing customs charges (in U.K. these are higher than VAT and on all but small-value items), unless the big issue is digital products.

  22. FATCA is most likely to blindside those accidentals born in the U.S. because a U.S. birthplace is one of the key things banks will be looking for.

    You’re, of course, correct, but…

    Those accidentals born abroad to two USC parents or one qualified USC parent need to be aware, probably especially those who were registered as US Births Abroad (by unaware parents who are still unaware) or, as my son, his accounts that I hold for him identified in the FBARs that I filed in all I did to get into US tax compliance to be able to file Form 8854. I feel the law should be effective for all of us and not depend just on Lady Luck and not having a US place of birth on our other-country passports.

  25. @Neill, aren’t most of these repeats from prior TA reports? What’s the point of having a Taxpayer Advocate if Congress/IRS can ignore recommendations with impunity???

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