Canadian banks wary of U.S. tax disclosure law
The final thrust of Canada-U.S.. tax treaty negotiations is triggering fears among bankers on this side of the border that they will be dragged into helping out on an American hunt for tax cheats — and passing along information about Canadians to U.S. tax authorities
*FATCA means there will no longer be any financial privacy for Canadians deemed by the US to be “US persons,” or their joint-account holding non-US person spouses either. Fair game for hackers around the world.
FBAR reports from these same Canadians will also reveal full details of the accounts of their non-US person business partners in all businesses where the US person has a 10% or more financial interest. That will pretty well fill in all the blanks.
@Roger I think there would also be room for hackers to doctor results so as to make Canadians appear as being born in the US causing harassment at the US border even if such persons were not US-persons. After all, as we have often said, the US does not always know who all of their citizens are.
After all, it would be in the interest of hackers to present names of real people, their bank details, and a US birthplace to make it more attractive for the IRS goons to reward them or pay for their data. Not saying that it would happen that way, but nobody can be trusted now.
So, “short of having the U.S. authority change their law” — which CBA is unwilling to lift a finger to try to accomplish — “authorities around the world have come to the conclusion they must deal with the United States to make this as administratively feasible as possible”. Translation: submit to the Americans’ demands and make it as painless as possible.”
Where’s the Opposition? Where’s NDP and the Liberals?
Maybe more opposition will start as US Persons in Canada and elsewhere are forced to ask for welfare, government housing, and even assistance paying their bills because they can’t have bank accounts.
*@Jefforson D. Thonas
US citizens living abroad can ask all they want. Unfortunatly for Americans living abroad none of these welfare benefits are availalble. About the only benefit available to US citizens living abroad is that in case of civil war, revolution or some other similar catastrophy they will arrange for emergency evacuation transportation – providing of course that you reimburse the US Government, cash in advance, for the equivalent of commercial air fare to cover your transportation cost. That’s the law.
@Roger What I meant was that US persons will start being a burden on the social welfare systems of the countries in which they live. This might bring more attention to the issue.
Knowing that you’ve been communicating directly with the CBA, it’s disappointing to hear you say that they are unwilling to work toward the US repealing FATCA. Ms Maura Drew-Lytle and Terry Campbell both seem willing to throw their fellow Canadians and Canada’s fiscal sovereignty under the bus. Unless the Canadian government stands up for Canadians who have US personhood, I’m afraid that the general populous will view us as the source of the problem. FATCA will see the end of American migration into the world.
Canadian Free Press: “Those Fleeing Obama’s America: Prepare to be taxed”
From the article:
“Schumer must thank Adolph Hitler for this idea. The Fuehrer instituted the Reichsfluchsteuer tax of 25% on Jews leaving the Fatherland in the 1930s. So Herr Schumer has merely taken the basic idea and upped it by 5%.”
“It is my opinion (and only my opinion at this point) that starting very soon the IRS will begin collecting an exit tax of up to 30% on any of your savings leaving the country.”
“This message is for those who want to leave and have the means to do so. Do it NOW. A year from now it may be too late.”