“We have to tax our people, it is our right,” Semere O. Micael, the Eritrean consul in Toronto, said after the National Post reported that Ottawa had sent a diplomatic note to his government making it clear he would be sent home if he continued to run the tax scheme.
Asked to respond to the consul’s comments, Foreign Affairs Minister John Baird’s press secretary Rick Roth said: “We have made our position on this matter to the Eritreans clear, and we expect that to be respected. The government of Eritrea should not test our resolve on this matter.”
My My My This is becoming awfully interesting. I have to wonder for a whole bunch of reasons whether the US State Department is really thrilled with Canada’s actions including for reasons that have nothing to with the US’ own taxation policies. For one thing Canada is picking a fight with a country that is not exactly in the most stable part of the world over an issue notwithstanding Susan Rice’s US Security Council Resolution the US has not appeared to be nearly as willing to go to that mat over. Canada is essentially in some form promoting a customary international law position against citizenship based taxation something at some point the US State Department will have to notice. Canada does have a history of taking “principled” position in this part of the world over international affairs. When the movie Argo comes out in October everyone will be reminded of Canada’s role in the Iran Hostage Crisis. There is also of course Canada’s longstanding ties to Ethiopia which Eritrea was once part of before 1991. Some of you might be remember the Ethiopian Famine and the relief effort started by Brian Mulroney, Joe Clark, and Stephen Lewis and Joe Clark’s famous 1984 visit to Ethopia breaking the western blockade of the then Ethiopian Marxist government. However it is not clear in the present the Ethiopian Canadian relations are much better John Baird for example made a highly publicized but unsucessful visit to Addis Abbaba to win the release of a Canadian citizen being held in a Ethiopian jail. There is also the more recent expulsion of Iranian Diplomats from Ottawa.
Another paragraph in the article should also be observed:
David Matas, an international human rights lawyer who has been assisting Eritrean refugees in Winnipeg, said the consulate was not complying with the substance of Canada’s request.
“To me, that’s making light of the government request. It’s not treating it seriously. It’s trying to play fast and loose. It’s basically trying to pull a fast one on the government of Canada,” he said.
David Matas is not just any old international human rights lawyer he has BIG TIME connections to the Conservative Party of Canada, Jason Kenney, John Baird, and the Harper PMO. My message to the Eritrean government is David Matas is not someone you want to mess around with in Canada. Read any of Paul Wells pieces in Maclean’s magazine about the Rights and Democracy NGO and Aurel Braun.
The good thing about this is that it will heighten awareness of ctizenship-based taxation. The following two issues should be kept distinct:
1. The issue of citizenship-based taxation as a general principle
2. The specific application of citizenship-based taxation.
I suspect that on the first point, it is probably acceptable although distasteful. On the second point: it is the specific application of aspects of citizenship-based taxation that are the problem. This is what the government of Canada is complaining about. By saying “we have the right to tax our citizens”, Eritrea is NOT responding to the real issue.
Interesting indeed. If the Harper government wishes to avoid a confrontation with the US government over it’s extraterritorial taxation of US persons in Canada, this is not the way to go about it. Serendipity may just play a part in how our government deals with our issues, it seems.
Speaking of pulling fast one, “My message on this one is to sit tight. We are not unreasonable. We are not unsympathetic. We are not irresponsible” rings pretty hollow after a year, when what the IRS has since offered to encourage compliance is what one would have had without it.
Miss Havisham has nothing over USP’s in Canada:
http://www.edmontonjournal.com/business/Featured+letter+Uncle+unleashes+hounds+hunt+Canadian+citizen/7275320/story.html
‘Featured letter: Uncle Sam unleashes tax hounds to hunt a Canadian citizen’ Edmonton Journal
September 20, 2012
…………”But over the past year there have been articles issued by the IRS
stating it was out to get all those American citizens living abroad who
had not been filing tax returns every year. The articles put the fear of
God in me; the last thing I wanted was to be accused of tax evasion
even though I’ve paid the Canadian government a rather staggering amount
throughout my working career.”……….”I feel threatened and bullied by our southern neighbour“
And this is different from Eritrea because?
We, US Persons in Canada, ABSOLUTELY feel threatened and bullied by our southern neighbour — no different than the Eritreans in the countries they have immigrated to.
US Ambassador to Canada Jacobson has given us no further assurance or evidence to his 2011 statement (just quoted by bubblebustin):
And, by the way, if part of the purpose of the good Ambassador being housed in Ottawa is to serve US Persons in Canada, he should receive an “F minus” for his annual personnel review on that count. Can anyone tell me anything he has done on our behalf?
http://www.winnipegfreepress.com/local/local-eritreans-applaud-feds-move-170808116.html
…….”Human rights lawyer David Matas said he fears the issue isn’t over.
Matas said the Eritrean government appears to be saying the tax law
is still in effect even though it won’t ask Eritreans in Canada to pay
the tax.
“They are taking the position it is a formality and not a substantive change,” the lawyer said.
“The position is it is still active, but they won’t enforce it. So the problem is not solved.“
Matas said the only solution is for the Canadian government to press the matter directly with the Eritrean government.”…………
““We have to tax our people, it is our right,” Semere O. Micael, the Eritrean consul in Toronto, said”
http://news.nationalpost.com/2012/09/21/it-is-our-right-eritrea-vows-to-continue-taxing-citizens-in-canada-despite-warning-from-ottawa/
See any similarities?
“The U.S. has consistently defended its assertion of world-
wide jurisdiction with respect to its citizens and residents,
both in the structure of the Code and in the terms of vari-
ous bilateral and multilateral agreements.”
from ‘American Citizens Abroad’s Recommendation for U.S. Tax Law Reform’, Jackie Buignon
http://www.taxanalysts.com/www/features.nsf/Articles/26ED8DE3F3C10D5B852579FB0067A8E8?OpenDocument
see also:
see also footnote1 :1 “With the one exception of Eritrea. Ironically, the United
States joined in Resolution 2023 of the Security Council of the United
Nations on December 5, 2011, condemning Eritrea for imposing a “Diaspora
tax” on its citizens residing overseas. Of course, citizenship-based
taxation is nothing more than a tax on the American diaspora under a
different name.”
footnote3 from the document above, 3 Joint Committee on Taxation, Sept. 6, 2011 (JCX-42-11),
prepared for the Public Hearing before the Senate Committee on Finance
of Sept. 8, 2011, “Present Law and Issues in U.S. Taxation of
Cross-Border Income,” p. 93, available at http://www.jct.gov/publications.html?func=startdown&id=4355.
“PRESENT LAW AND ISSUES IN U.S. TAXATION
OF CROSS-BORDER INCOME
Scheduled for a Public Hearing
Before the
SENATE COMMITTEE ON FINANCE
on September 8, 2011
Prepared by the Staff
of the
JOINT COMMITTEE ON TAXATION”
Worth a read.
@Badger
In the WFP article, Rolloson quotes Eritrean citizen Ghezae Hagos as saying:
“We have been working on this for many years now. This will set a precedent for other countries.”
Why this posturing by the Canadian government now? Could this be the ‘sabre rattling’ we’ve been listening for?
A small note here. In the first paragraph, Rolloson refers to the Eritrean government ‘shaking down its former citizens for money’. No such thing as a former Eritrean, as Eritreans are forbidden from renouncing citizenship, and if they were allowed, we would presume that their tax liability would end (unless of course the Eritrean government enacted an ex-patriot tax on their former citizens, as Schumer would like to do).
I suppose that many will make the argument that unlike Eritreans, US citizen’s are at least allowed to renounce citizenship. I can’t tell you how many times I’ve informed Americans in the US that to do so over taxes would be to ban oneself from re-entering the US. All were appalled when they learned about the Reed Amendment.
Thanks for adding that @bubblebustin, I missed that part of the article, and I wonder what precedent he is referring to, but I hope it is one that will support criticism of the effects of one state (whether they are an ally or a foe) breaching the sovereignty of another, overreaching over into the borders of Canada, and staking claims to assets and income saved and already taxed here. This leaves us with only the US egregiously asserting the same claims as Eritrea.
“Canada made history,” said a jubilant Ghezae Hagos on Friday.
“We have been working on this for many years now. This will set a precedent for other countries.””
from http://www.winnipegfreepress.com/breakingnews/local-eritreans-applaud-feds-move-170808116.html
@badger
I paused at that too, but took it to simply mean that Canada has set precedent for other countries to take action against Eritrea, but it most certainly could be thought of in your broader terms. Maybe you should ask him, his email is there. I already sent a letter asking if him if he would do a story on the only two remaining countries in the world that expect this of their citizens, comparing the two to each other.
Great idea bubblebustin. Maybe there will be others now that it is really big in Canadian news.
I just re-read this article http://www.nytimes.com/2012/04/16/business/global/for-americans-abroad-taxes-just-got-more-complicated.html?pagewanted=all :
“Alone among the citizens of the developed world, Americans have the same tax-filing and tax-payment responsibilities whether or not they reside in the United States. American expatriates still have to file the annual Form 1040, and all the documentation that goes with it — even though most already pay taxes in their countries of residence.”……..
….”Mr. Ruchelman said there was a larger question to ponder — that of fairness — considering that the United States is alone among industrialized countries in taxing on the basis of nationality, rather than residence.”…..
….“Does it make sense to tax nonresidents and subject them to some of the most complex compliance forms in the 1040 package?” he asked. “Congress seems to believe that the answer is yes.”
This whole situation between Canada and Eritrea is very encouraging. You have to think that the Canadian government is acting because they’ve heard and are hearing the complaints from their citizens who are, incidentally, also citizens of the US or Eritrea and that they understand how citizenship-based taxation is harming these groups of Canada’s own citizens. If they are going to start taking action, it makes sense that they first go against the smaller of the two, Eritrea, as they have.
Clearly the US government will never have a moral epiphany, coming-to-God moment on its own. It’s going to take a foreign government like Canada standing up for its own citizens to finally end citizenship-based taxation. And with 1mil+ US persons in Canada, the Canadian government can set a very good precedent.
*Kindly leave the Eritrean government in peace. My government has a hard enough time dealing with geopolitical questions concerning Eritrea and her citizens. Geopolitical questions which make life almost unbearably impossible for a nation who is constantly harassed by its neighbour to the south and its allies who intentionally enjoy misconstruing our intentions, policies and objectives. The likes of GHEZAE HAGOS are to blame in this particular case. Talk about making a mountain out of a molehill-like modest 2% tax!
@Rahwa, thanks for your comment. I would be happy only to criticize Eritrea regarding its 2% tax, under the following circumstances: That Canada and the United States stop being hypocrites and that they see the gorilla in the room–US citizenship-based taxation. Until the United States stops harassing and persecuting her own citizens who are expats, with citizenship based taxation whose compliance costs alone (never mind the tax) are typically more expensive than the 2% tax worldwide on Eritreans, then they have no call to criticize Eritrea. In fact, it is the definition of utter arrogance and hypocrisy for the United States to criticize Eritrea for its 2% tax.
@Petros, good bible quote, one of my favorites. @Rahwa That the US critisizes Eritrea (even through a UN security council resolution) and does the same thing but much worse to its own citizens abroad should really make it look bad. When we mention the Eritrea example here at IBS it is to critisize the US.
I move that if the US insists that it continue to tax its citizens abroad that they move to the Eritrean model! A 2% flat tax with no form filing would be a welcome improvement.
@bubblebustin, well no. It wouldn’t do well to have 1 million people in Canada pay 2% of what they earn to the United States or have something bad happen to their family back in the homeland. 2% would simplify matters for some people, and it would be considerably less than what some people have paid, but it would harm the Golombek’s “majority” who don’t owe anything–particularly those like me, who managed to pay so little for compliance.
@Petros
I’m being facetious to point out to Mr Rahwa Tesfai Ghermai, as you had, that our issue is not with the Eritrean government, but with US government hypocrisy. I hadn’t considered the torture of Eritreans as an official part of Eritrean tax policy. You know I support the abolishment of the extortive practice of citizenship based taxation as the only acceptable outcome.
It looks like part of the Eritrean military is trying to take over the government to end the repressive regime. Soldiers just took control of the media today and demanded the release of all political prisoners.
http://worldnews.nbcnews.com/_news/2013/01/21/16627037-eritrean-soldiers-turn-on-unhinged-dictator-demand-political-prisoner-release
If this turns into a coup, or even if it just results in a less repressive government, Eritrea may abolish citizenship-based taxation and leave the US completely alone in this practice.
The siege of the Eritrean media by a small part of the military has ended. There was no attempt to overthrow the government.
http://www.aljazeera.com/news/africa/2013/01/20131229324580346.html
http://allafrica.com/stories/201301220964.html
*@Petros, yes that quote from the Bible says it very well. But Eritreans living in Canada are also partly to blame for blowing things out of proportion. If they were only half as angry at the real culprits (the US and Europe) as they are with their own brothers, the Eritrean government might even receive some credit and praise from them, at least once in a while. Ghezae Hagos is a really messed up man who seems to be making a calling out his will to self-destruct. Would somebody please tell him to listen to what THOMAS C.MOUNTAIN has to say? The truth of the matter is that people like him are more at fault than the Eritrean government could ever be. Everything our government does is done with great care, reason and wisdom, if only all Eritreans were as careful, reasonable and wise…
It looks like the brief siege of the Eritrean media by the military last week is having consequences. The Eritrean Information Minister has left the country, and protests have been made at Eritrean embassies in the UK (twice), Italy and Israel.
http://allafrica.com/stories/201301311544.html
http://allafrica.com/stories/201301310078.html
http://www.awrambatimes.com/?p=6034
http://www.jpost.com/NationalNews/Article.aspx?id=301794
More protests in the US, Canada, Germany, Sweden, Egypt, and now posters in Eritrea itself.
There will be no coup! As long as Issaias Afewerki is living, as long as I am living and as long as the laughable Eritrean opposition continues to be lead by that racist halfwit Dan Connell, there will never be any goddamned coup! WHAT kind of people are my people anyway? HOW can you lot be so naive, so gullible as to let the CIA in amongst us? DAN CONNELL here’s hoping you shit bricks! Kirkirkirkirkir!
To@Bubblebustin The US has always been and will always be full of shit but that doesn’t have ANYTHING to do with the Eritrean people. THE Eritrean government has the right to tax its people especially those self-interested DOUBLE citizenship bearing members of the Eritrean diaspora like Ghezae Hagos. It is NOT extortion if I have never been haraassed or threatened into paying it. I THERFORE TAKE IT UPON MYSELF TO DECLARE THIS CASE CLOSED and judgement overruled in favour of the Eritrean Government!