Liberty and justice for all United States persons abroad

The Isaac Brock Society

Media and Blog Articles Open for Comments – Part 4 of 11 (Year 2017)

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-4-of-4)

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.   I’ll make a permanent list of links posted here and keep adding to it,  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.

Notes:

From JC:   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.

From Badger:   On an important archival note, please use the Internet Archive Wayback machine https://archive.org/web/ (see bottom right ‘Save Page Now’ box to enter URLs of webpages you want saved for posterity, and try to save backup copies of articles and other items of interest in some other form – such as a datastick or external drive. Some important and very significant webpages and the fulltexts of articles are no longer available (although some can be retrieved if someone using the Wayback machine saved 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.

2017.12.28
It’s time to address the double standard about tax havens, Angela Wrights, Macleans, Canada.
The US Is Becoming the World’s New Tax Haven, The Editors, Bloomberg View, US.
2017.12.21
Rep. Dina Titus Supports Americans Abroad Tax Reform, Democrats Abroad, US. 
Now That The GOP Tax Bill Is Approved, The IRS Gets Busy, Brian Naylor, NPR, US.
2017.12.20
Taxpayers will have to wait to find out how they fare under new legislation , Renae Merle and Aaron Gregg, Denver Post (reprint from Washington Post), US.
U.S. Shareholders –Take Action by December 31, KPMG.
2017.12.18
Have You Ever Felt Sorry for the I.R.S? Now Might Be the Time, Patricia Cohen, New York Times, US.
2017.12.12
EU finance ministers issue warning to Trump over tax reforms, RTÉ, Ireland.
2017.12.11
Banque: les consequences étonnantes de l’accord FATCA, Edouard Lederer, Les Echos, France.
2017.12.10
As Australia ousts MPs with dual citizenship, Canada’s Parliament embraces many in its ranks, Kathleen Harris, Canada. (mentions MP who “assumed his U.S. citizenship was automatically rescinded because he did not meet several requirements for continued citizenship. [But when travelling to Washington] was told he was ineligible to enter the U.S. on a Canadian passport because he was a U.S. citizen. He was . . . allowed in on a one-time basis . . . it cost him $3,000 to later sort out the administrative requirements.”)
2017.12.09
The American Diaspora: Outreach and Organization, Victoria Ferauge, The Franco-American Flophouse, Japan.
2017.12.08
Foreign-owned banks to be hit by US tax rules, Financial Times, UK.
Trump Tax Plan Worries Europe, Christian Reiermann, Der Spiegel, Germany.

For articles earlier in 2017, click here.

1,720 thoughts on “Media and Blog Articles Open for Comments – Part 4 of 11 (Year 2017)”

  4. “I thought the US didn’t agree to the CRS. Why then would CRS reporting include US persons? Why would CRS cause VanCity to give up the FATCA IGA’s local-client-base exemption?”

    Maybe the expense involved in operating two different sets of screening criteria and employing more compliance officers. CRS looks for “tax-residence” rather than “residence.”

    There’s an IRS Medic interview with the head of the World Council of Credit Unions on the Republicans Overseas website.
    https://republicansoverseas.com/credit-unions-inside-outside-us-fatca/

  5. A short time ago there was some concern here about the South African tax system and that it seemed to look an awful lot like CBT. John Richardson has written an excellent article clarifying the important distinction between the South African and US systems. He explains how the South African “worldwide” tax system is NOT another version of CBT. Thank you for this, John!

    http://www.citizenshipsolutions.ca/2017/09/06/south-africa-is-not-attempting-to-compete-with-usa-by-challenging-the-us-monopoly-on-citizenship-based-taxation/

  6. @plaxy, thanks for catching that sly method of the IRS “quietly” allowing FFIs an extension. I also note that Panamanian FFIs – who are reporting for the FIRST time – are getting an extension “Panamanian financial institutions have been granted extra time for their first FATCA reporting. The new deadline is September 8, 2017……” https://taxnews.ey.com/news/2017-1419-panamas-tax-authorities-further-extend-first-fatca-reporting-date-for-panamanian-financial-institutions-to-september-8-2017

    Canada jumped to attention and wagged its tail when the US snapped their fingers. Our craven government lackeys signed the agreement and legislated it into force http://www.fin.gc.ca/treaties-conventions/notices/unitedstates-etatsunis_1-eng.asp despite all the advice that such haste was unwise and unnecessary https://openparliament.ca/committees/finance/41-2/34/prof-allison-christians-1/only/ and started reporting 3 years ago, with the CBA and the Cons claiming the sky would fall if they didn’t. The CBA was urged to use its substantial resources to oppose FATCA’s imposition on Canadians, http://maplesandbox.ca/2013/letter-to-canadian-bankers-association-issued-jointly-by-isaac-brock-society-and-maple-sandbox-in-opposition-to-fatca/ but instead Canadian financial sector advocacy groups chose to work behind the scenes in favour of the IGA (ex. see; “…A joint Canadian
    financial industry group, including the IIAC, urged both U.S. and Canadian officials to enter into an IGA which gave the Canada Revenue Agency (CRA) the responsibility of collecting and transferring the required tax information in an efficient and secure manner to the IRS. ” http://www.advisor.ca/wp-content/uploads/2016/05/IIAC-Letter-from-the-President-Vol-95.pdf
    and http://maplesandbox.ca/2013/canadian-investment-executive-and-canadian-bankers-association-preparing-for-fatca/ ).

    Well, we’re in 2017, and the sky hasn’t fallen and no FATCA withholding weapon (ex. http://isaacbrocksociety.ca/2014/04/29/latest-from-carl-levin-on-russia-and-fatca/comment-page-1/ ) has been deployed on Panama has it? And that is despite the Panama papers detailing the use of Panama as a popular place for a multitude of players https://panamapapers.icij.org/the_power_players/ to stash money https://panamapapers.icij.org/ .

  7. You’d think a major war strategy would be to delay surrender for as long as possible, wouldn’t you Badger?

    The Canadian government under Harper was way too eager to throw Canadians under the bus, denying themselves the opportunity to put FATCA off for as long as possible – made painfully clear when the US allowed other countries more time:

    http://isaacbrocksociety.ca/2015/09/24/if-we-dont-ask-the-conservative-government-we-dont-get-today-one-brocker-got/

  8. It’s the Panamanian government that has granted an extension to the Panamanian FIs, giving them more time to get their reporting procedures working. Panama has a Model 1 IGA so the withdrawal threat doesn’t apply.

    The sneaky extension the IRS has granted is for renewing FFI agreements that are about to expire.

    Yes, interesting that FIs are leaving it late to renew. Maybe the panic is subsiding.

  9. Here’s my update on Vancity and FATCA. I met today with a manager whom I presented with the following from their previous statement:

    “While Vancity must comply with the law, we are committed to protecting our members’ right to privacy. By registering as a Local Client Base financial institution, we believe we have significantly reduced the impact of FATCA on the majority of our members. As a result of our Local Client Base classification, Vancity only needs to collect FATCA information and report on member accounts held by non-Canadian residents.”

    Also brought the new material from their website:

    https://www.vancity.com/PrivacyAndSecurity/YourPrivacy/FATCA/

    https://www.vancity.com/PrivacyAndSecurity/YourPrivacy/CRS/

    I inquired about my personal situation to confirm if my Vancity accounts were exempt from FATCA reporting. Also Vancity recently replaced its FATCA statement with the new statement which indicates they will be collecting FATCA related member information if one is considered to be a US person. So I inquired as to why the change and if there was a connection to CRS implementation on July 1, 2017.

    We also discussed problems for Canadian citizens/residents who may still be considered US persons (CBT, FBAR, FINCEN, etc.). I indicated that the new Vancity FATCA statement was not very customer friendly. I also brought up that Local Client Base FI status was a better option.

    As to my status, I was asked a long list of questions and asked to sign an updated form with declaration of Tax Residence. I also gave them my CLN to make a copy for their records. The manager confirmed I was exempt from FATCA reporting.

    As to why the change, I was told there was a recent system upgrade at Vancity. This upgrade apparently has made data collection feasible for FATCA and CRS. So Vancity has joined the compliance club. They would have done this sooner but didn’t have the equipment!

    Perhaps at this point we need to consider purchasing gold and keeping our funds under the mattress. My confidence in my credit union has flown out the window.

  10. @ PatCanadian
    Thank you for the Vancity update …. sigh. The part about the long list of questions is creepy. Were the questions in writing and did they give you a copy of them?

  11. @Embee

    No, I didn’t get a copy of the questions.

    They were basically questions to determine the following which are on the Vancity FATCA statement:

    According to FATCA, you are considered a United States person if you are:

    A citizen of the United States (including those born in the United States but resident in Canada or another country, who has not renounced United States citizenship)
    A lawful resident of the United States (including a United States green card holder)
    A person residing in the United States
    An entity, e.g. a business or non-profit, that is a tax resident of the United States or is a passive entity with one ore more controlling persons who are United States reportable persons.
    An individual who spends a considerable amount of time in the United States on a yearly basis.

    She also asked where I was born. We discussed US Social Security deposits in my Vancity US account but I brought that up. It’s not an issue as it’s only taxed in Canada.

    I find it creepy that they really aren’t protecting their members right to privacy. The FI’s and their employees are upholding a very unjust law.

  13. Perhaps this should be an IBS Feature as has been the case for other requests to input into Senate Finance, House Ways & Means, and other surveys. We certainly don’t want all the response from Homelanders abroad.

    Democrats Abroad Have a New Survey. Their FATCA survey results were publicized and quoted by Bopp at the FATCA Hearing. So it is important to do this survey. It is unknown when the results will be out, as it is a volunteer effort.

    https://www.facebook.com/groups/AmericanExpatriates/permalink/852705338228873/

    There was some commentary of wording of a key question yet this has been fixed now.

  14. I find this part about this step in the FATCA/FBAR lawsuit of interest:

    As a side effect of the progress of this legal case, the effort to get the Standing of the plaintiffs accepted: aims to get the court to accept the fact that FATCA/FATCA IGA involves “coercion” by the U.S. against other countries/banks in other countries. I believe many think the FATCA IGA are “agreements” between parties not involving coercion.

    Plaintiffs in FATCA Challenge Seek En Banc Rehearing

    https://www.facebook.com/groups/AmericanExpatriates/permalink/853151868184220/

  16. “As a side effect of the progress of this legal case, the effort to get the Standing of the plaintiffs accepted: aims to get the court to accept the fact that FATCA/FATCA IGA involves “coercion” by the U.S. against other countries/banks in other countries. I believe many think the FATCA IGA are “agreements” between parties not involving coercion.”

    The US coerces the countries and the countries coerce the banks; but the en banc hearing is only about whether US citizens have suffered sufficient harm as a result of coercion of others (FFIs), by a US law (FATCA), to have standing to bring a complaint in a US court.

    That’s the issue in both the cited precedents and is the only issue (other than repeal) that has any chance of eventually bringing FATCA down.

  19. @PatCanadian

    Thanks for taking the trouble to march down and confront VanCity. Given the questions you received, probably a good thing it was someone with their CLN in hand.

  21. @Bubblebustin, re; “..You’d think a major war strategy would be to delay surrender for as long as possible, wouldn’t you… ?

    Yes, if little countries could hold out and either not ratify the IGAs or not deliver the FATCA info to the US for years, and the sky didn’t fall on them and no FATCA withholding was imposed, then how is it that not only did Harper and minions rush to do the US bidding and commit Canadian taxpayers to pay for enabling and enforcing a US domestic law extraterritorially and unconstitutionally on Canadians, but the CRA is currently pretending that they are being transparent with Canadians – but have not admitted how much of the money they describe “…… close to $1 billion in Budget 2016 and 2017……… ” (see http://www.news9.com/story/36313243/minister-lebouthillier-shares-with-canadians-the-latest-results-of-cracking-down-on-tax-cheats-with-canadians ) is actually going towards collecting and remitting Canadian taxpayer personal and financial information annually to the US in aid of enforcing a foreign country’s tax laws – the US FATCA – on Canadian soil, rather than using our own hard earned tax money to protect our own Canadian fisc.

    As we know, FATCA is not reciprocal, never was intended to be reciprocal, and will never be reciprocal. The CRA has refused to say what they have gotten from the US which is any different from what they already had under the existing terms of the Canada US tax treaty before the FATCA IGA.

    The CRA placed this PR statement Sept. 7, 2017;

    “………. the Government of Canada is taking important steps to combat tax evasion and aggressive tax avoidance, funded by historic investments of close to $1 billion in Budget 2016 and 2017.

    With such an important investment comes a responsibility to report back transparently to Canadians on results. The Honourable Diane Lebouthillier, Minister of National Revenue, provided an update on the progress the Government has made in addressing the recommendations made by the House of Commons Standing Committee on Finance (FINA) and the actions taken by the Canada Revenue Agency (CRA) on this front…….. ”
    http://www.news9.com/story/36313243/minister-lebouthillier-shares-with-canadians-the-latest-results-of-cracking-down-on-tax-cheats-with-canadians

  23. http://www.internationallawoffice.com/Newsletters/Private-Client-Offshore-Services/USA/Kozusko-Harris-Duncan/Practical-FATCA-and-CRS-compliance-for-family-trust-structures

    I presume this will be the same for Henson (in Canada) / discretionary trusts set up for disabled family members, not specifically discussed in this paper.

    Beneficiaries
    A US tax resident beneficiary who receives a distribution from a non-US trust will be the subject of a FATCA report. That beneficiary has a US reporting obligation and may owe US income tax.

    A trust beneficiary tax resident in a CRS participating jurisdiction who receives a distribution from the trust will be the subject of a CRS report if he or she is resident in a reportable jurisdiction.

  24. That doesn’t seem to be the standard compliance message at the end of that Dewees article. Kevyn Nightingale, the person quoted, doesn’t sound like the typical IRS-enrolled tax advisor. He co-wrote an article, “The American’s Tax Experience in Canada.” It’s on ssrn.org but not available for download so I can’t see exactly where he’s coming from.

    Abstract

    Only two governments in the world – the United States and Eritrea – subject their citizens to comprehensive worldwide taxation regardless of where they live. There are more Americans living in Canada than in any other foreign country. While the two countries have generally similar income tax systems, there are a number of areas of incompatibility. As a result, US citizens living in Canada encounter significant limitations on their ability to carry on their activities or plan their affairs, compared with non-US citizens. In addition, the reporting burden imposed by the US Internal Revenue Service is heavy, and growing. A more aggressive enforcement policy in recent years has induced increasing numbers of Americans abroad to relinquish their US citizenship or green-card status. This article discusses the history of this phenomenon, and the tax consequences for Americans in Canada who give up their US status.

    https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2261405##

    Depressing to learn that Dewees’ lawyer – the one who rushed him into OVDP – is the Chair of Republicans Overseas Canada.

Comments are closed.

%d bloggers like this: