ACA: “Thanks to Brian Knowlton (NYT) for his perceptive article regarding anger and frustration over the revised federal registration and ballot request form. NOTE that one can still use the previous (2005) version, with less invasive language. DO NOT LET this deter you from voting this year!!”
Monthly Archives: May 2012
Article in Toronto Star on FATCA (ACA needs to denounce Rep. Neal TODAY)
Here it is:
A couple of comments:
Its just a reprint of a Bloomberg article but because its a Canadian newspaper I though some might be interested in making comments on the comments section.
I found the comments from US Congressman Richard Neal to be quite interesting. I think if ACA and Democrats Abroad want to truly show they are in this battle, they need to come out and denounce Congressman Neal TODAY.
Non-relationship between taxes and renunciation – interesting comments
Barrie McKenna's new article on FATCA
Barrie McKenna reports about the negotiations between Washington and Ottawa to “temper” FATCA’s requirements, through a government to government sharing arrangement. Barrie called me yesterday looking for a reaction. I hope the quote is pleasing to everyone:
“The idea that any of our financial information would be given to the IRS is an abomination,” said Mr. Dunn, 48, who is in the process of giving up his U.S. citizenship and filing back taxes to end his obligations to the IRS.
Recent media coverage: one entry for the Hall of Fame, lots for the Hall of Shame
Ms. Atossa Abrahamian’s article last month about U.S. persons abroad giving up citizenship has really opened up the floodgates to a deluge of reporting on issues of interest to us here at the Isaac Brock Society. It’s hard to keep up with all of it, let enough find the time to comment on everything. Here’s a roundup of recent coverage. Thanks to FromTheWilderness and others who left comments pointing us to these articles.
Last Date for 8854 filing is June 15, 2012
My understanding is that the last date for filing Form 8854 for a 2011 expatriation is June 15, the due date, because of the automatic extension for the tax filing for a person resident outside the United States. After that date, a person could be subject to warnings or even a $10,000 non-filing fine. So be it.
Phil Hodgen meets with IRS to solve RRSP problems – Thank you Phil!
https://twitter.com/#!/renounceus/status/199852579214204929
Phil’s blog post is a “must read” (The Isaac Brock Society is mentioned). Full of all kinds of great ideas – including teaching how people how to get at “Private Letter Ruling”. Also, some interesting “non legal advice” thoughts on the FBAR problem. You will find the actual paper that was submitted to the IRS here. The paper was supported by the New York Society of CPAs.
Phil, thanks again for your help and support!
U.K.'s Association of Investment Companies suggests members not comply with FATCA
Financial institutions have generally fallen into two categories in their reactions to FATCA: some seem to be leaning towards trying to qualify under “deemed compliance” exceptions, while others have urged their governments to shred privacy laws so they can dump all the costs and harms of compliance onto the public. But as far as I know this is a first: an industry body suggesting that its members ignore FATCA entirely. A couple of different links to the story, in case one or the other ends up trapped behind a paywall: IFAOnline.co.uk and Investment Week. Quotes below. Continue reading
Treasure Islands
I want to recommend a book that should be of interest to all IBS contributors/readers:
Nicholas Shaxson, Treasure Islands: Tax Havens and the Men Who Stole the World. London, 2011.
[editors note: zuludogm has also provided a review of this book]
FATCA and other US initiatives are meant to curtail tax evasion through off-shore tax havens. Or, so we are led to believe. Shaxson shows, with ample documentation, that the US and the UK are the biggest tax havens in the world. Foreigners (“non-resident aliens” in tax lingo) can maintain tax-free savings and investment accounts in the US. Anti-tax evasion measures taken by the US are chiefly aimed at preventing US citizens utilizing tax evasion strategies intended to attract non-US investment.
Taiwan banks having second thoughts about FATCA?
The latest FATCA news from Taiwan and mainland China: Taiwan banks are busy worrying about the mainland’s attitude, but Beijing is still not releasing any details besides confirming the fact that FATCA discussions with Washington are underway. On the bright side, the lack of confirmation about the mainland’s final disposition towards FATCA seems to be spooking banks in Taiwan. They certainly seem less confident in their original “bright idea” of solving all their problems by shredding Taiwan’s consumer data privacy laws in order to reduce their costs of complying with FATCA — because they realised they might also face issues in other major markets where they have far less lobbying power to encourage similar “solutions”. Translations below.