23 thoughts on “FATCA Reciprocity Will Now Target Delaware? Is That What G8 Communique Means?”

1. This will, of course, trickle down with disaster-like results for the average person living outside their native countries. Everything aimed at corporations, who are technically not doing anything illegal, seems to have a way of being redirected at people while the corps just find other legal loopholes to slip through.

   End result? I can’t see dual-citizenship remaining a viable option for any but the ultra-wealthy. Who is going to be able to afford it?

   Curious that Obama has thrown his own banks under the FATCA bus (or is FATCA even going to be necessary now?)

2. 1. Tax authorities across the world should automatically share information to fight the scourge of tax evasion.

   is ambiguous as it applies to Canada, the US and FATCA. Canada and the US already have an information-sharing agreement. We”ll have to wait for the other shoe to drop, supposing it does.

   On the other hand the House rises on Friday and doesn’t come back until mid-September, so maybe it’s a good time for some cod liver oil.

3. The OECD report for the G8 summit says (at page 12):
   http://www.oecd.org/ctp/exchange-of-tax-information/taxtransparency_G8report.pdf

   Exceptions to reportable accountholders: With respect to individual accountholders the Model 1
   IGA covers both residents and citizens of the United States. As most jurisdictions only tax residents not citizens, the multilateral model would only need to cover residents. With respect to entities, the Model 1 IGA covers all types of U.S. entities but specifically excludes 12 categories of low risk/generally compliant entities which are defined by reference to U.S. legislation. Such an approach in a multilateral context, where every country would specify a list of different exceptions by reference to domestic law, may be difficult for financial institutions to operate and may also be difficult to legislate domestically. A simplified approach needs to be developed.

   2. Due diligence procedures: The due diligence procedures required by the Model 1 IGA could generally be used with certain modifications to remove U.S.specificities, such as reliance on U.S. forms and the removal of identification requirements associated with citizenship. Inspiration could also be taken from the due diligence procedures included in the EU Savings Directive. Due diligence procedures may also have potential synergies in helping ensure that source taxation rules are properly applied.

4. Not sure if this is front page news, but this is definitely a slap to FATCA. I’m getting ready to hear about the boot/kick to FATCA arse …

5. http://www.bbc.co.uk/news/world-europe-22954374

6. The slow-motion train wreck is beginning to speed-up.

7. @Yoga Girl…” I can’t see dual-citizenship remaining a viable option for any but the ultra-wealthy. Who is going to be able to afford it?” I agree with you on that.

   It is encouraging that the multinationals COMPANIES will be listed and looked at – but will that really happen We here on Brock are multnationals but people….FATCA can not be a “one size fits all”. Corporations are NOT people!

   @WatACroq – “Not sure if this is front page news, but this is definitely a slap to FATCA. I’m getting ready to hear about the boot/kick to FATCA arse ” How would that be a slap?

8. Are Corporations People?

9. @Eric
   Thanks for posting that bit. It seems to me this might be progress. There is attention being paid by people who might be listened to about the problems with the US focus on collecting information on citizens.
   Maybe if the US actually wants a multilateral agreement, (and that’s a big unknown) that will be another blow against citizenship based taxation.

10. I think he is a neoliberal….”He has also done public policy research for the Mercatus Center, Heartland Institute, Citizens for a Sound Economy, and the Cato Institute.
    http://www.learnliberty.org/speakers/steven-horwitz

11. Ah, to be a bird within the rushes to hear the blarney…

    http://news.nationalpost.com/2013/06/18/stephen-harper-barack-obama-meet-on-sidelines-of-g8-summit-in-northern-ireland/

12. bubblebustin, the US is pushing Canada hard on Syria b/c though we appear to be supporting them, Harper hasn’t really pledged much beyond words though he did give a tongue lashing to Russia, it felt … hollow. I read today the Sen. McCain took the Canadian Defense Minister to task about the lack of tangible support too. I kind of doubt there was much IGA talk. Probably more about Syria, maybe Keystone and who knows, maybe Obama asked about this sudden ally love for China and the plans for joint military exercises. And let’s not forget that the new Mexican president thinks that Mexico and Canada should have a relationship that doesn’t include the US so they can look out for their own interests in the TransPacific while the US plays one upmanship with China. There is a lot going on with little ole Canada that Obama might feel like discussing in addition to the apparent foot dragging on the IGA.

13. @yogagirl

    Thanks for the insight. You’re very well caught up on the relationship between our two countries.

    I thought maybe he wanted former Governor General Michaelle Jean’s phone number 😉

    “It was clear Canada’s first black governor general and Obama, the first black American president, hit it off. They beamed as they strode down a red carpet together.
    At one point, cameras captured Jean tossing back her head in laughter. “At that moment she was telling him that she felt it was like a love affair between him and Canadians,” Blouin said later.”

    http://www.thestar.com/news/canada/2009/02/21/obama_invites_michalle_jean_to_washington.html

14. interesting article at Columbia Law School
    http://clsbluesky.law.columbia.edu/2013/06/19/should-lex-americana-be-universal-fatca-turns-foreign-banks-into-tax-informants/

15. another interesting article at Columbia Law School

    http://clsbluesky.law.columbia.edu/2013/04/18/applying-morrison-v-national-australia-bank-the-supreme-court-rejects-extraterritorial-application-of-the-alien-tort-statute/

    the SCOTUS struck down an exterritorial law enacted in 1789.

16. @Patricia

    Great articles. Have to wonder if these individual voices in the wilderness will one day form a chorus of outrage that might actually get heard in the right places to end the insanity that is FATCA. In other words, its repeal by those who enacted it.

17. @Patrica – Your links from Columbia Law school made my day….especiallly the Lex Americana one.

    It looks like the world is saying what is good for the goose is good for the gander. Time will tell,, eh?

18. Great finds from Columbia Law School, Patricia. All, including the Lex Americana, links were good reads. Thanks for sharing them with us.

    Straight to GATCA?

19. Eric

    Thanks for bringing up the OECD document. I think the following is particularly important:

    “As most jurisdictions only tax residents not citizens, the multilateral model would only need to cover residents.”

    This would support my hope and speculation that a multilateral approach would only gather information supporting residence based taxation. The collection and reporting of information would have to be standardized, as the document observes, and that would probably mean excluding information sought by a single country.

20. Pingback: FATCA Reciprocity Will Now Target Delaware? | The Freedom Watch

21. Robert Woods as penned an article on the G8 communique

    G-8 Nations Take On Tax Evasion, Tax Havens And More

    There are a couple comments there that might interest you…

    Patric Hale: http://onforb.es/14l61I6

    Mine: http://onforb.es/12O5YYe

    On a lighter note, God has a keen interest in Tax avoidance apparently.

    Archbishop Says Those Who Avoid Taxes ‘Are Actually Robbing God’

    Patric’s comment: http://onforb.es/105dtYp

    and I had to do a tongue in check one: http://onforb.es/11B1UG1

22. Yup, I am ready to sign up for that DATCA….

    Offshore Tax Havens – Hey Obama Delaware Must be First to Go

    Prime Minister Cameron is committed to making “fighting the scourge of tax evasion and aggressive tax avoidance a priority”, and has said he also wants to ensure anti-money laundering and counter-terrorist financing measures are effective, and help poorer countries collect tax revenues. Obviously, his priority target is the U.S. State of Delaware and the U.S. “Too Big to Jail Banks” that launder the majority of the World’s Drug and Terrorist money.

    President Obama is surely on-board with the PM’s proposal; given all of the preaching from the pulpit he has done on evil tax havens. Although, many members of the Congress, TBTJ Bankers and their lobbyist will strongly object to the destruction of the world’s largest tax haven: along with the State of Delaware itself. But, President Obama without a doubt will take it to the people and ask that they contact their elected representatives and demand that Delaware be forced to cease being an offshore tax haven and the TBTF Banks be confiscated by the government for their criminal activities.

    The State of Delaware can offer no defense for aiding foreigners to evade paying taxes to their country of residence and assisting international criminals in the laundering of their ill-gotten gains; although some in Delaware attempt to brush aside the seriousness of the State’s criminal activities.

23. The Mouse that Roared? I love hearing some defiance and push back by the so called Tax Havens who don’t employ income tax to raise revenues. About time…

    
    Bermuda: we are not a tax haven

    We’ve always met our tax obligations in Bermuda – if Cameron continues to meddle in our affairs he’ll have a battle on his hands

    Much of the recent discussion around large corporations not paying taxes in places where they do business has focused on “tax havens”. David Cameron’s recent meeting with the UK’s overseas territories and crown dependencies was meant to show his determination to get the United Kingdom’s proverbial house in order and show his G8 colleagues he has the wherewithal to do so. Both efforts came across as petulant political posturing.