Media and Blog Articles – Part 1 of 11 (to 26 May 2015)
You can access all years at this link:
http://isaacbrocksociety.ca/media-and-blog-articles-links-for-all-years/
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” too. [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.
2015.05.26
New Survey finds US expat voting could impact 2016 Presidential Election, Greenback Expat Tax Services, NASDAQ GlobeNewswire.
This congressional committee wants to hear all your FOIA gripes, Colby Itkowitz, Washington Post, US.
The black money recovery skills of IT department are nothing to write home about, Vivek Kaul, The Daily Reckoning.
2015.05.25
The Intersection of US Federal Tax Law with Collection of International Information- – Including Other Federal Agencies, Patrick W. Martin, TaxExpatriaation, US.
2015.05.23
America the not so brave: America has led the global assault on tax dodgers and their enablers. But the reality still lags behind the rhetoric, The Economist, UK.
Cash Banned from Chase Safe Deposit Boxes, Matt Chilliak, Live and Invest News.
2015.05.22
US Steuergesetz hat unerwartete globale Konsequenzen, Colleen Graffy, Geopolitical Information Service. Also at Consequences of US widening net to catch tax dodgers, Colleen Graffy, World Review.
The horse may have bolted … but, Angelo Venardos, Asia Asset Management.
Important Correction: Passports Required to Enter and Leave US — but SSNs May be Optional, Patrick W. Martin, Tax Expatriation, US.
2015.05.21
Americans working abroad face unexpected financial issues, Sarah O’Brien, NBC, US.
Senate tax reform groups get more time, Bernie Becker, The Hill, US.
2015.05.20
Malaysia will defer FATCA reporting, FSI Tax Posts.
America’s Self-Inflicted Wound, Moises Naim, The Atlantic, US.
Janice Mays: The Tax Guru Who Guides House Democrats, Alex Brown, National Journal, US.
Sen. Rand Paul Launches Filibuster in Protest of Patriot Act Renewal, C-SPAN, US.
@Publius & George
The Democrats and Republicans are both wrong on most issues. The Democrats are wrong on some issues where the Republicans are right, and vice versa. The only candidates who are always correct on everything are the orthodox libertarian extremists.
Now, Canada is far more socialist that U.S.A. Canadians should focus on being as libertarian as possible. In a free country, you could operate a bank without complying with FATCA.
@Calgary411
No problem. I even spelled your name correctly when I wrote to Warren! I was writing to her about PFICs, but that sounded so insignificant compared with what you’re up against. I can’t imagine anyone defending taking money from disabled people. The problem is getting a ‘do nothing’ Congress to act. The House of Representatives is busy campaigning until November. Unfortunately, there isn’t a single disabled legislator on the main tax committee. A McCain or a Dole might sort it out.
In a more sensible world, the U.S. government would just give up on requiring expensive paperwork on the “foreign trusts” listed in the IGAs, since they seem to be back to the honor system on those accounts anyway. The whole thing is a mess.
@Kathy
I think that the overseas voters who vote Democrat this time around will be extremely left-wing or maybe in some way face fewer problems with FATCA. I know American men in Britain who aren’t affected much because they are higher-rate tax payers with less well paid (and therefore less heavily taxed) non-American wives: all their family’s savings and investments have always been under their wife’s name to save British tax.
Really great article here. These guys are really pissed that their bank accounts in France got closed on them:
http://www.sott.net/article/286662-FATCA-what-How-to-fight-the-war-on-tax-evasion-one-American-at-a-time
At a recent Garth Turner post, I wrote this comment:
#57 WhiteKat on 09.27.14 at 12:20 am
Keep on living the Canadian dream. I used to think I was Canadian. Now I discover I am …cough…a ‘US person’, which trumps my Canadian citizenship from birth.
Apparently according to someone who calls himself/herself ‘None’, this is my parents fault. None writes:
Sure, you were born on American soil, therefore you became an American at birth by being born physically in the US! You were a Canadian after the fact really by virtue of your parent’s citizenship. Your parents should have educated themselves on the citizenship rules of the country they had you in. Why is it you think your parent’s ignorance about US citizenship laws means the US is screwing you? I admit it is crappy to find out so late in life you are a US citizen but frankly, get mad at your parents, not the US. Plus, I assume you knew you were born in the US, so why didn’t you ever stop to think, ‘hey maybe I should check into that?’ I don’t like the way US taxes by citizenship vs. location but ultimately, that’s why they give you the ability to give up your US citizenship. The fact that your parents never knew the ramifications of having you in the US is not fault of the US gov’t. In the end, if you are a dual US-Canadian citizen and you don’t like the way the US handles taxation, give up your US citizenship, but yes, there is a cost to doing so. Again, nothing to do with the Canadian government, and more to do with your parents never properly checking into things.
@WhiteKat,
Part of the political risk we all face is that some government wants to claim us. They usually only want to claim us because we have some resources they want. Of course it gets dressed up as you needing to ‘pay your fair share’.
@WhiteKat
Not knowing about your US tax filing obligations only makes you a reasonable person, because no reasonable person would be expected to know know. I wonder if this person knows about Canada’s own departure tax?
The IRS’s own Taxpayers Advocate in her 2011 Report to Congress, had harsh criticisms for the IRS in its lack of effort to make Americans abroad aware of their tax filing obligations (page 16):
http://www.taxpayeradvocate.irs.gov//userfiles/file/TAS_arc2011_execsummary.pdf
“What do Tina Turner and Facebook co-founder Eduardo Saverin have in common? More than you might think. Both celebrities recently gave up their U.S. citizenship, highlighting a growing trend among high-earning expatriates living abroad. Last year, a record 3,000 Americans renounced their citizenship, tripling 2012’s total.
Here’s a look at why some people are making that decision as well as the cost of doing so.
Why give up your American citizenship?
Unlike most countries, the United States government taxes the income of its citizens regardless of where they live. This is known as citizenship-based taxation. It’s worth noting, though, that this only affects expatriates earning more than $97,600. If you earn less than that while living overseas, you’re exempt from taxes, meaning handing in your U.S. passport wouldn’t make a huge financial difference. In fact, the fees associated with doing so might make you think twice about giving up your American citizenship.
There are also consequences to renouncing citizenship. It means giving up the benefits accorded to U.S. citizens, such as the right to vote in U.S. elections, easy access to the U.S. job market, unhindered travel in and out of the country, and government protection when abroad (for instance, if you run into trouble in a war-torn nation).
Fees
As of Sept. 12, the price of renouncing one’s citizenship skyrocketed from $450 to $2,350. In a memo published on its website, the State Department justified this drastic increase by explaining that the process requires “U.S. consular officers overseas to spend substantial amounts of time to accept, process, and adjudicate cases.” As well as handling stacks of paperwork, consular officers have to schedule multiple interviews with a person who opts to renounce his or her citizenship. The State Department adds that the previous fee was subsidized and that the updated price tag is “reflective of the true cost” of the service.
Expatriation tax
Along with the aforementioned processing fee, some people renouncing their citizenship will also be hit with an expatriation tax, or “exit tax.” This tax applies to anyone with either an average annual net income tax for the past five years exceeding $157,000 or a net worth of more than $2 million. Since this tax applies to high-earning individuals, it’s often viewed as the government’s final way of asking expatriates whether they’re positive they want to go through with the process. For those who can afford this one-time tax—like Ms. Turner and Mr. Saverin—the answer is a resounding “yes,” as it spares them years of having to pay significant U.S. taxes while enjoying life abroad.
Bottom line
If you reside in America’s upper tax bracket and live overseas, it may make financial sense to renounce your U.S. citizenship. Otherwise, you’ll want to think twice before setting off on what is by all accounts an arduous process. After all, despite the hype surrounding the growing number of expatriates surrendering their citizenship, there are still roughly 6 million Americans living abroad who are choosing to hold on to their American passports.
As with any important decision that affects your bank account, it’s crucial to do your homework before setting the wheels in motion.”
http://www.nerdwallet.com/blog/finance/current-events/renouncing-citizenship-save-money/
@Bubblebustin
and nobody ever questions why such a process should even be “arduous”.
Has anyone else tried commenting on that Nerdwallet article? I did and all it did was cc the article itself!
@Molly
The article is nothing more than US-centric garbage.
My response to the Nerdwallet article that they don’t seem to want to publish:
“This article is completely US-centric and takes very little into consideration, like the fact that most of the people renouncing (that’s 75% of them) live in Canada, the UK and Mexico, are long term US emigrants and from across the economic spectrum. The fact that there remains 7 million US citizens living abroad is completely irrelevant – those people either don’t know about their US tax filing obligations or that they are even considered US citizens, let alone US taxpayers! Does anyone really think that taxing its citizens abroad is a revenue generator for the US? FATCA is bringing this all to the forefront, but all the revenue FATCA itself will generate through its citizens abroad will be at the front end. This will not be the gift that keeps on giving, as we will all either a) make good on our taxes and renounce, b) not make good on our taxes, renounce and stay out of harms way, c) go underground, d) become compliant, remain USC’s but minimize our tax exposure, e) move to the US. The US’s policy of taxing its citizens abroad enforced by FATCA is making it impossible for Americans, rich or poor, to live normal lives in the countries where they are also citizens. Who, rich or poor, wants to be a second-class citizen where they live? Would you, Mr Armstrong? By the way, The Toronto consulate is booking US renunciations into April even with the fee increase. It would seem that people of even modest means will go to great lengths to rid themselves of something that prevents themselves from living normal lives where they live.”
@ bubble…..mine wasn’t published either! So I wrote:
Any comments that wish to debate your stand are not being posted. So much for a lively discussion. (That wasn’t posted either…funny that).
I think I will post, “Interesting article!” and see what happens. Maybe their disqus is sick!
@Charl
You can reach him on twitter, and apparently Facebook too.
Re: Part of the political risk we all face is that some government wants to claim us.
There are people who are US citizens who cannot travel to certain other countries because they would be drafted into the army upon arrival. These people want US citizenship (because they live in USA) and don’t want to be drafted into another army. The political risk is lessened by never traveling to the other country.
In the case of Brockers, I cannot tell you what to do, but your best bet is never to enter USA. If your family wants you at a wedding or funeral, tell them no dice. What have they done to remove the political risk? Why should you pay so many thousands of dollars just to leave open the option that you might one day transit U.S.A. or enter it? If you can resolve that you will never enter U.S.A. then you need not worry that you have not paid U.S.A. taxes; and you can focus on working around the issues at the local bank.
First FATCA Fraud Goes Before US Courts:
http://www.iexpats.com/first-fatca-fraud-goes-us-courts/
@Tom
I have no intention of ever setting foot in America again.
I really have no ties there. I have lived in Europe since I was a child – like 50 years ago. All of my family has made their livelihoods elsewhere without needing the USA to do so.
But I feel sorry for those with family members there.
@LM
What does that have to do with FATCA. They were tipped off!!!!!!!!!!
@ Polly
This is not the situation that Brockers face, but just thought I’d make all aware of the US courts beginning to move on a FATCA-related case.
Here is another article open for comment:
http://www.iexpats.com/surge-us-expats-returning-passports-due-fatca/
The question I ask is in this FATCA Fraud (being able to avoid FATCA) where do these 100 US taxpayers reside — in the USA and laundering their money through shell companies? Are they us, *US Persons* who have made our homes and do our banking in the countries of our choosing in which to live?
It seems apples and oranges and extortion of so-called *US Persons* working, living, being citizens of countries of our own choice, which is not the USA.
I’d like to know who these people are, Calgary, because Brock had a link to some meetings in Panama where the speakers were offering ways to do this some time ago.
@Calgary411
I remember when the post on the seminar in Panama came out thinking how stupid those people must have been to splash that kind of info all over the internet – surely the IRS must be watching if someone posted in on Brock. Now I think that it could have actually been a part of their sting operation…
In my search for more info, I came across this written by Mark Nestmann in August of last year:
“Then, just last week, a client sent me an article written by a financial advisor in Panama. The article described a “loophole” in the FATCA agreement that exempts accounts smaller than $50,000 from reporting. It suggested that a U.S. taxpayer who wanted to preserve financial privacy merely needed to open multiple accounts in Panama, and keep all of them under the $50,000 threshold.”
http://www.nestmann.com/if-they-try-to-sell-you-this-run-dont-walk#.VDA0-WK9KSM
@LM
I think what I am trying to say is that it wasn’t FATCA which caught them. It was some whistleblower.
And as I understood it- these people were residents of the USA?
reread it- seems some were US residents and some were not….
Polly – yes, it seems some were – and some were not – US residents. But then it is good to see those who are US residents, and ARE hiding money abroad, being found. That is what the IRS SHOULD be doing, not bothering US expats abroad doing day to day banking in their local bank around the corner from their home!
@LM
* But then it is good to see those who are US residents, and ARE hiding money abroad, being found*
Even if they are US residents… what difference does it make? Money is taxed where its made.. if I make the money in the US.. I paid the taxes on it… if I decide to save the money in another country.. just in case the economy tanks & make sure my family is provided for… so what… Instead of buying something… I save it… who’s business is it? How am I hiding it… its been taxed already… that is the issue I don’t get. Here is another one… I am a darn immigrant to the US… who had a life prior & after the US… I paid the taxes on it already elsewhere.. why should I be punished with fines & taxes on something that was not made in the US to the US.
We are all trying to avoid fatca… if they are saying they are not then they are not telling the truth… we are all doing our own sheltering of our hard earn funds from a country where the money was not made… who thinks they are owed something… even though we paid the taxes where the money was made…
For some, yes – For some, likely not. Some could be legal and above board, taxes paid. Some not. To have used a scheme set up to avoid taxing and reporting ever is what this seems to be.
I’m not clear on if “offenders in Belize and Panama conspired to submit false FATCA documents, fraudulently manipulate shares prices and launder the proceeds” are the persons who have set this up. Is it set up for *US Persons* living in Panama and Belize, perhaps having retired there and moving their US retirement funds to live on or is it for persons who live in the US and are sending their un-taxed money offshore to Panama and Belize through this set-up?
[ It’s just me; I’m not clear on who is who in this story. I need to read it a few more times. ]