Purpose of this post. Yesterday I made the obvious mistake of putting a post on Brock. What was I thinking? Well, I was thinking: Brock really needs a post. I have been reading a great deal about sanctions and thought that FATCA could perhaps best be viewed as a sanction. Of course, the “don’t comply” group immediately jumped in (what this had to do with the post is beyond me) with the general message that FATCA (and the July 22, 2019 McTavish decision) are irrelevant for one simple reason. The reason is that pursuant to the Canada/U.S. tax treaty, the Canada Revenue Agency shall not assist the United States in collecting a tax debt on a Canadian citizen. Generally, the whole situation should be ignored – nothing will ever come of it.
For the reasons specified in the comments (read them yourself) to that post, I think it’s unlikely that there will be any enforcement of citizenship-based taxation in Canada today and tomorrow. But, I think it’s a mistake to think that this couldn’t change. I do NOT believe that the situation should be ignored. I believe that people have an obligation to do what they can to oppose U.S. citizenship-based taxation, FATCA and it’s component parts (which includes many in the compliance industry).
The question is this:
Are you going to ignore this extreme injustice, which is dangerous to the sovereignty of Canada, which has resulted in your being effectively stripped of your Canadian citizenship (that’s the true impact of the McTavish decision) or are you going to contribute to changing this for the next generation. Are there any aspects of this that extend beyond your personal interests? That’s for you to decide. For your information, the essence of the McTavish decision is found in paragraphs 348 and 349 which read:
 First of all, as noted earlier, the U.S. tax obligations of American citizens exist regardless of whether or not the IRS is actually aware of such individuals. I also agree with the Defendants that the benefit that would accrue to those affected by the Impugned Provisions by their ability to ignore their obligations under American tax laws is outweighed by the need to protect Canada as a whole from the economic consequences of FATCA.
 I further agree with the Defendants that the ability of those individuals resident in Canada to claim immunity from the duly-enacted laws of another democratic state of which they are citizens is not the kind of interest that the Charter was ever intended to foster.
This is what the decision means. This is the section that other courts and government agencies will focus on. This is extremely dangerous!
Let’s consider the following …