Liberty and justice for all United States persons abroad

The Isaac Brock Society

Is citizenship-based taxation a violation of international law?

Posted on by Posted in Issues regarding US persons abroad 76 Comments

See also:

US Citizenship-based taxation and FATCA are egregious violations of the Master Nationality Rule 

Cook vs. Tait: The Book

———————–

This whole situation is getting ridiculous. Through citizenship-based taxation the U.S.:

1. Steals from the wealth of countries;

2. Steals from the wealth of individuals who:

– just happen to have been born in the U.S.; or

– were born to U.S. parents who just happened to be living abroad

3. Terrorizes U.S. citizens living abroad and dual citizens in the same way that Eritrea does.

4. violates the national sovereignty of other countries by:

– imposing taxation by a foreign country on persons who are bona-fide residents of those countries and by collecting tax revenues from within their sovereign borders;

– In countries with foreign exchange controls it obligates bona-fide residents of those countries to illegally obtain a the currency of the taxing country and remove it from that country to pay taxes to the foreign country levying such taxes.

(In essence it requires that such persons decide which prison system they are most likely to survive in either violating the extraterritorial tax laws of the country imposing citizenship-based taxation or the foreign currency control laws of their country of residence by illegally obtaining on the black market currency of the taxing nation and, in violation of the money-laundering laws of the nation of residence illegally remitting the foreign currency to the taxing authority of the country imposing the tax.)

I would like to start a thread on reasons why citizenship-based taxation might actually violate international law.

International law would include:

– treaties

– International Human Rights documents

– International law based on the law of custom

Finally, could citizenship-based taxation been construed to be a crime against humanity?

What about making this a “sticky post” or put it on the side so that it doesn’t get buried.

This is getting almost comical. Why any country would comply with FATCA is simply beyond me.

Think of Ghandi’s peaceful resistance to the British in India. Why not a peaceful resistance to FATCA? What is the world’s biggest debtor going to do about it?

Update:

Oh yes, I forgot. Citizenship-based taxation is even bad for the U.S. (but, hey how could they understand that?)

76 thoughts on “Is citizenship-based taxation a violation of international law?”

  1. @ Badger

    The same comment was posted to Maple Sandbox. I emailed J Paule Dube and received this response from him last week:

    In preparing for the ABA tax Enforcement Conference I
    have been reading materials produced by the Taxpayer Advocate Service,
    particularly with respect to the Foreign Bank Account Report (FBAR) and the
    Foreign Account Tax Compliance Act (FATCA) and note that Nina Olsen and her
    staff are working on the issues you raise. I must admit that these issues were
    not familiar to me and not within my mandate.

    I will however communicate your concerns to Mrs.
    Olsen and offer any assistance my Office can provide to taxpayers in need of
    information

  2. From over at the Maple Sandbox:

    Hazy on November 2, 2012 at 6:51 am said:

    On October 3 at 6:08 AM Christophe posted a reference to a International Tax Enforcement conference that will be held in NYC on November 8 and 9. He also mentioned that J Paul Dube, CanadianTaxpayers’ Ombudsman would be on a panel with Nina Olson.

    I emailed Mr. Dube regarding the concerns of present or former U.S. persons in Canada have about FATCA and FBAR Here is the reply I just received

    Dear Hazy

    Thank you for your October 4, 2012 email.

    In preparing for the ABA Tax Enforcement Conference I have been reading materials produced by the Taxpayer Advocate Service, particularly with respect to the Foreign Bank Account Report (FBAR) and the Foreign Account Tax Compliance Act (FATCA) and note that Nina Olsen and her staff are working on the issues you raise. I must admit that these issues were not familiar to me and not within my
    mandate.

    I will however communicate your concerns to Mrs. Olsen and offer any assistance my Office can provide to taxpayers in need of information.

    Regards,

    Paul Dubé
    J. Paul Dubé
    (Note- sent from his Blackberry)

    Reply ↓

    calgary411 on November 2, 2012 at 9:45 pm said:

    That is too bad Mr. Dubé does not see our concerns as part of his mandate — as the IRS sucks away Canada’s wealth (provided by Canadian taxpayer, including the US Persons in Canada).

  3. Pingback: The Government of Canada: Toward a #FATCA IGA – Mass renunciation as a solution « Freedom from the tyranny of U.S. citizenship-based taxation for U.S. and dual citizens outside the U.S.

  7. Pingback: Does Cook v. Tait really mean that citizenship-based taxation is constitutional in all cases? « Freedom from the tyranny of U.S. citizenship-based taxation for U.S. and dual citizens outside the U.S.

  8. Pingback: The Isaac Brock Society - Does Cook v. Tait really mean that citizenship-based taxation is constitutional in all cases?

  9. There is a petition one can sign on the White House Website  http://wh.gov/UqPtI   There are only 245 signatures on it.  Please go and sign the petition to support residency based taxation.   Happy New Year! 

  10. @Bertpup…

    I would do that, but the response I get to that link is.  

    404 Page Not Found

    Do you have a better link?

  13. Pingback: The Isaac Brock Society - U.S. citizenship and a possible marriage penalty

  16. @Sad-in-the-UK

    Thanks for commenting here.  I bet you are SAD in UK, with the IGA implementation about to happen.  UK plays first poodle again.   Pay attention to this…   The $50K safe harbor for detection and reporting is going to be ignored, in all likelihood.

    Read the last paragraph of this story, and spread around to your UK US citizens…

    They need to all do their own individual risk assessment.

    UK financial institutions may face compensation claims if they send inaccurate data under FATCA regime

    “HMRC has some concerns about requiring a broader set of information to be reported than that required under the terms of the IGA (the UK’s Intergovernmental Agreement with the US) but recognises that many respondents wish to have the option of reporting all US Accounts regardless of the thresholds as this may actually reduce business costs in some circumstances,” it said. “The draft regulations contain a provision that would allow for this to happen. HMRC will continue to give consideration to the respective cost to business and HMRC of allowing such a provision.” 

  18. Thanks to this article “Exclusive: U.S. plans to let spy agencies scour Americans’ finances
    ” at the link http://www.reuters.com/article/2013/03/13/us-usa-banks-spying-idUSBRE92C12720130313 posted by Swisspinoy https://isaacbrocksociety.ca/2013/03/14/exclusive-u-s-plans-to-let-spy-agencies-scour-americans-finances/ , we now have the coming together of the BSA, Homeland Security, and the Patriot Act.

    There is no specific mention of FBARs and FATCA, or of those required to file under the BSA from abroad in this article, but no evidence that we would somehow be excluded – keeping in mind the repeated statements by the IRS and Treasury that the compliance burden imposed on those ‘abroad’ are of wider import than merely taxation. The father of FATCA even stated that the rationalization offered up should include references to anti- money laundering, anti terror funding and anti drug trafficking efforts, as a way of broadening support for the FATCA initiative – and offering a justification for it as being about more than just taxation.

  19. I just found out about this yesterday through the CBC report so I’m new to this…is there no group working on legal action in Canada? A Charter challenge?

  20. Complete BSht taxation based on citizenship. Pure crime. A violation of many international human rights laws. Someone has to stop this bully thief, put the whole administration in jail. Finish with the BS for once.

  21. Pingback: Denaturalization and the Origins of the American Republic – The penalty of #Americansabroad | Citizenship Counselling For U.S. Citizens in Canada and Abroad

  22. Pingback: Thoughts on Exit Taxes in the Modern World by @VictoriaFerauge – Do the S. 877A rules go too far? | U.S. Persons Abroad – Members of a Unique Tax, Form and Penalty Club

  24. >> Why any country would comply with FATCA is simply beyond me.<<

    It's simple! The United States employs the old, 'carrot & stick', tactic.

    In regard the United Kingdom, the IRS gathered names, addresses, bank account details, including account numbers, and balances of UK citizens living in the US. And at an IGA, between the UK & USA offered up the dosh on the UK citizens before using the coupe de gras, '…and should any UK FIs not comply by refusing to provide the same info on US citizen living in the UK then they will suffer a 30% withholding tax on payments of US source income'.

    In other words…the United States will bankrupt them…using strong arm extortion tactics.

  25. You wrote “Think of Ghandi’s peaceful resistance to the British in India. Why not a peaceful resistance to FATCA? What is the world’s biggest debtor going to do about it?”

    This raises a question I had on a FATCA-based thread on Quora – the guy I was discussing it with suggested I post here. I was wondering quite how worried one should be if one was, say born in the USA (or parents born in the USA) but no other ties to the US, and the IRS decides you owe them $600k for not filing tax returns (as I believe is plausible).

    Is it a matter of being unable to fly to the US without fear of being arrested, or is the US able to take action to reclaim funds even if you stay where you are (be that Canada, the UK or elsewhere)?

Leave a comment

Your email address will not be published. Required fields are marked *