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

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

1. Nightingale is an asshole. He went off on Keith Redmond, on Facebook, threatened to “turn him in” for encouraging people to stay out of the US tax system. (Harassment ceased when someone sent a copy of the conversation to his employer.)

   That being said, at least his condor warning was basically correct: a dual with no US ties only faces risks around potential inheritance and maybe travel.

   I’d still like to know, how big was the refund CRA withheld, and how would CRA have collected any amount in excess of that refund?

   Dewees’ lawyer deserves a special award for idiocy. Glad he’s identified, I now know who to avoid!

2. “I’d still like to know, how big was the refund CRA withheld, and how would CRA have collected any amount in excess of that refund?”

   Maybe they wouldn’t’ve.
   http://nationalpost.com/news/canada/canada-revenue-agency-struggling-to-collect-taxes-as-total-uncollected-debt-soars-110-per-cent-to-38-billion

   If collection of Canadian taxes is so difficult to enforce, collection of US punitive excessive penalties would surely not have been easy.

3. @plaxy

   Here is the paper published in the Canadian Tax Journal in 2013:

   http://www.ctf.ca/ctfweb/Custom/CMDownload.aspx?ContentItemKey=11eb8ece-4a53-4f1a-a676-cb888fe67ed5&ContentKey=4fa01c65-281b-437c-8099-bae25c4fbca6

4. @badger

   How many unenforced laws does the US have that they keep around just in case they want to enforce them?

   At my request, my congressman’s legislative director has an enquiry with the IRS as to what it plans to do with the information it has received through the FATCA IGA’s. She said to expect a response in 6-8 weeks.

5. Thanks, Bubblebustin. I thought from Nightingale’s comparatively restrained comment that he might have a realistic view of US extraterritorial tax collection, but as Nononymous posted above, it seems he’s indeed a condor.

6. Nightingale has said some reasonable things at various points, but at the end of the day is still in the compliance business. He really went off on Keith though, quite shocking.

   I’ll say it again:

   1. Even though it concerns US-only citizens rather than duals, we need to know more about the CRA’s collection capability when it acts on behalf of the IRS. If it’s only withholding refunds, that’s not much of a cudgel.

   2. Dewees should sue his lawyer for providing such remarkably shitty advice. Contesting the penalty might have been throwing good money after bad.

7. The treaty article says:

   “4. Where an application for collection of a revenue claim in respect of a taxpayer is accepted

   (a) by the United States, the revenue claim shall be treated by the United States as an assessment under United States laws against the taxpayer as of the time the application is received; and

   (b) by Canada, the revenue claim shall be treated by Canada as an amount payable under the Income Tax Act, the collection of which is not subject to any restriction.”

   That seems pretty clear. Canada won’t accept a claim for a year in which the person was a citizen, and they won’t accept a claim for non-tax penalties (FBAR). Otherwise, the treaty says they’ll treat it as they do Canadia tax debts – inefficiently, maybe, but that’s not a reliable form of protection.

   Becoming a citizen is really the only protection. The rule against FBAR collection failed Dewees: the IRS just dropped the FBAR claim and substituted a different 10K per year non-filing penalty, one that Canada couldn’t refuse under the terms of the treaty.

8. @Bubblebustin, who knows what the US will do with the info, and what other unenforced and unpublicized laws they’ll use if it suits them – or invent new uses for. They demand ‘compliance’, but create so many pitfalls with the incomprehensible labyrinthine rules and forms that ‘compliance’ is fraught with quicksand.

   That is why I maintain that it isn’t compliance they really want, it is penalty revenue. At this point they can see where ordinary people make inadvertent mistakes. And they do nothing to make it easier to understand or comply correctly. Why would they? They can generate layered penalty revenue even in the absence of any tax owed. There is an intrinsic conflict of interest if they can bring in (as they did in the OVD) much larger penalties than they ever could have legitimately assessed as tax owed.

9. We can’t trust our own government to protect us or our data;

   ‘Secret Government of Canada data stored on U.S. servers? Memo raises possibility
   Document shows Ottawa’s IT department exploring options for sensitive data storage on U.S.-based servers’

   By Dean Beeby, CBC News Posted: Sep 08, 2017

   “……Two government agencies have been meeting with Microsoft Inc. to discuss ways to store secret Canadian data on American servers, a measure expressly forbidden by federal policy.

   Microsoft’s talks this year with Shared Services Canada and the Communications Security Establishment reviewed whether sensitive data about Canadians and other confidential matters could be securely encrypted on American “cloud” services.

   A May 2017 memo to the chief operating officer of Shared Services Canada (SSC) says the discussions examined in part how to protect Canada’s sovereignty by insulating the data from legal demands under the USA Patriot Act, which forces firms to turn over confidential information to American law enforcement if demanded………”

   http://www.cbc.ca/news/politics/storage-data-cloud-government-canadian-shared-services-microsoft-secret-1.4277836

10. Also from article referred to above;
    “……the memo also concludes with a warning that no data-storage cloud system is impervious to the USA Patriot Act or other legal challenges to Canada’s data sovereignty.

    The document by Raj Thuppal, of the Cyber and IT Security unit of Shared Services Canada, says ” … no mechanism is able to entirely prevent foreign access to data should legal requests be invoked.”

    ……”…..
    http://www.cbc.ca/news/politics/storage-data-cloud-government-canadian-shared-services-microsoft-secret-1.4277836

11. badger: “it isn’t compliance they really want, it is penalty revenue. At this point they can see where ordinary people make inadvertent mistakes. And they do nothing to make it easier to understand or comply correctly. Why would they? They can generate layered penalty revenue even in the absence of any tax owed. There is an intrinsic conflict of interest if they can bring in (as they did in the OVD) much larger penalties than they ever could have legitimately assessed as tax owed.”

    In a nutshell. And topping it all off is the law that says no tax-related penalty can ever be considered excessive. The sky is not the limit; there is no limit.

12. Badger & Plaxy: Very well stated. I’m going to share your comments with a friend of mine who is urging me to get my US tax situation in order and join the (official) renunciation line. I am trying to explain to this person why this is utterly impossible as long as the current laws and programs are in place. Your comments will be of great assistance. Thank you both!

13. Well, there’s a first time for everything! The USA actually evacuates citizens from a disaster zone, without telling them to ask the Russians or Indians to save them, as in Yemen, Nepal, and elsewhere.

    http://dailycaller.com/2017/09/09/us-evacuates-hundreds-of-citizens-from-caribbean-island-laid-to-ruin-by-irma/

    Note the comments complaining about “rescuing people living the good life on a Caribbean island on the tax payer’s dime”.

14. MuzzledNoMore: maybe your friend sees renunciation as a quick complete solution that would solve all the FATCA tricks and traps and bring freedom and normality. I used to think that.

15. @MuzzledNoMore, few people truly understand the complexities of this situation for the affected. We shouldn’t have to sacrifice our legal local earnings and savings to satisfy the arrogant extraterritorial demands of a foreign overlord outside Canada’s borders. Each person must do what is best and least harmful for themselves as best they can judge it. No-one has a crystal ball. Renouncing solves some problems but creates others for some people and situations. If one chooses some kind of compliance route, it should be only a means to a better end. The US has effectively suspended all ethics in its dealings with those outside the US and has demonstrated by its actions and statements that it does not intend to change.

    Ordinary people affected have to do what they see as best for them, whatever that may be. Your friend may mean well, but not understand the context and details as you do, since you’ve been immersed in this for some time now. And even those of us who’ve been trying to follow this for years now, don’t understand all the permutations and what they mean for people in different situations. I for ex. have not had to face the situation of those with a small business, or those with mutual funds.

    Most people I meet still look at me with incomprehension when I try to tell them how difficult and costly the US has made it to comply or to renounce with compliance. It simply doesn’t register because it is so absurd and so unethical and so lacking in any coherent logic.

16. I nominate these for Brock Features Two Features.

    Brock has been involved with these surveys and inputs in the past. Now should be no exception. The most likely avenue for real change over the following few months is tax reform in the U.S., IMO, more so than change in Canada while change should be in both countries.

    https://www.facebook.com/groups/citizenshiptaxation/permalink/1506765619413181/

    https://www.facebook.com/groups/citizenshiptaxation/permalink/1502055666550843/

17. Since I’m not sure that people who don’t use Facebook can see JC’s links, above, I paste below the Republicans Overseas urgent call to action.

    Write your letters, people!!

    ——————————————————–
    YOU MUST ACT NOW!! NO EXCUSES!! PLEASE SHARE WITH ALL FELLOW AMERICANS OVERSEAS (regardless of party affiliation or non-affiliation) & ACCIDENTAL AMERICANS!! If you do nothing, nothing will change!!

    We need your help. The Senate Finance Committee and the House Ways and Means Committee are working on tax reform, and we need to get overseas Americans’ voices heard. We have not had tax reform for 31 years, and if we miss our window now, we will not see another chance for 20 more years.

    At the initiative of Republicans Overseas, the RNC recently adopted a White House approved resolution supporting the change from citizenship based taxation (CBT) to residence based taxation via RO’s proposed Territorial Taxation for Individuals (TTFI). We have champions and sponsors in both the House and the Senate. We have found tax loopholes that TTFI would close, thereby making TTFI revenue positive. The ingredients for success are lined up–but we’re missing one: the massed voices of ordinary overseas Americans.

    What we need now is for our representatives to hear from as many overseas Americans as we can gather. We believe that the vast majority of overseas Americans support the inclusion of TTFI to the tax reform package, and we need to hear from thousands of them. We want to collect as many letters supporting TTFI and tax reform as we possibly can, which Solomon Yue will then present to the White House.

    Can you please support our initiative by writing a letter to President Trump and copying your Congressman and Senator.

    Here’s how it will work:

    1) RO is providing a letter template along with an example which can be found here:

    https://republicansoverseas.com/territorial-taxation-individuals/#sample-letters

    We urge letter writers to share their own short stories, but also to link their letters to the themes outlined by the White House in their press release on tax reform by focusing on two points: \

    (a) TTFI reduces the cost of hiring Americans working overseas, increases U.S. exports, and creates more American jobs within the U.S., and (b) it reduces tax preparation costs for overseas Americans. The sample letter already does this, but it is important to reiterate that we need to reinforce the White House’s points and link those points to individual situations.

    2) The letters should be emailed to taxreform@republicansoverseas.com and copied to their local representative and Senators. Links to government databases providing this information can be found at

    https://republicansoverseas.com/territorial-taxation-individuals/#contact-congress

    3) Solomon Yue will print out the letters and take the physical package to the White House. Clearly, the more the better!

    Thank you for your support! If you have any questions or suggestions, please contact Kym Kettler-Paddock at kym.kettler-paddock@republicansoverseas.com.

    Regards,
    Michael DeSombre
    Worldwide President, Republicans Overseas

18. The full text of this Wall Street Journal article was sent to me by someone who reads here but does not post. It demands some response from this community! It’s written by an American who is (rightly, in my opinion) upset by Vancouver’s real estate tax on foreign ownership.

    Amongst the article’s notable quotes is: “Nationality-based taxes are among the worst kinds of protectionism.” Instead of ranting solely against a Canadian tax of this nature it would have been marvelous if the author had acknowledged the nationality-based tax imposed by her own government against all its sons and daughters – including her! – who no longer live within its borders. Perhaps the author is unaware. Perhaps Brockers would like to enlighten her.

    https://www.wsj.com/articles/canadas-tax-on-being-american-1505171378 I haven’t copied the full text of the article here for copyright reasons. I hope a non-paywall version becomes available.

19. I wish I could read that article, MNM, as I would love the author to change my mind about banning foreign ownership of Vancouver real estate altogether. Speculators, both domestic and foreign have taken over the Vancouver market and it’s a disaster.

    Foreigners aren’t second-class citizens, they aren’t citizens.

20. OK, I just read the whole WSJ article and it’s 100ish comments. As of now, there are ZERO comments to the effect of how the USA is a prick with their taxing individuals outside of their territory….I guess it’s still “the worst law nobody’s ever heard of.”
    This being said, comments are about 50/50 attacking and defending “Canada” with a few individuals pointing out that this is NOT federal law here…..but the ignorance still abounds. Several people are saying that the USA should “tax the hell” out of Canadian snowbirds who own property there, or that They (Canada) need us much more than we need them… Damn, I wish the USA WOULD do that! They seem to think it’s we Canadians who would be doing the crying (Haha!).
    I bite my tongue not to comment, but for self defense reasons (safety from the “Land of the Free Joke”) I cannot.

21. And just in case we needed another example of the usa recklessly throwing it’s weight around:

    http://www.zerohedge.com/news/2017-09-12/us-threatens-cut-china-swift-if-it-violates-north-korea-sanctions

    I’m sure the MSM is a little more muted on the subject. In any case, from my vantage point, I kind of hope they DO follow though on this threat, as the sooner this happens, the sooner we will all be able to find FATCA uninfected financial institutions with whom to do business. Yes, this will take a while, but it’s coming.

    And no, I’m not that selfish and cold hearted. I DO NOT believe this will in any way affect the likelihood of a very ugly and deadly regional war near NK.

22. The retired professor is just plain wrong in claiming the taxes are nationality based. They are not. The Greater Vancouver Transfer Tax is based on residence in Canada regardless of nationality, and the City of Vancouver Empty home tax is applied to owners who occupy or rent out the home for less 6 months per year, regardless of whether the owners are American, Canadian, both or neither. This type of tax is in place or is being considered in other cities where houses are bought for investment and left empty, San Francisco, Palo Alto, London. Paris, Sydney, Melbourne to name a few. These Vancouver’s taxes are not “Canadian taxes against being American” and to label them so is fake.

23. “FATCA, FCPA, AML and OFAC allow the US to regulate the world. But what does it really mean?”

    http://www.jdsupra.com/legalnews/fatca-fcpa-aml-and-ofac-allow-the-us-to-22658/

24. A shout out to IBS!!!
    http://www.internationalinvestment.net/products/us-political-parties-overseas-groups-ramp-resi-based-tax-campaign/

25. Hey, I’m now famous, for a comment on IBS that I copied and pasted from elsewhere. And I’m accused of being a Republican!

    But seriously, it has a great description of the Isaac Brock Society. At last, a journalist offering respect!

    It’s in the article Charl links to, just above.

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