Lynne has a superb and very timely article on Financial Post website today.
Dual Canadian-American citizens: We are not tax cheats
Check it out, and please contribute to the comments. You may recognize the sources of a couple of them.
I was born and educated in the US. After completing my post-graduate education, I entered Canada on a temporary work permit, moving to Canada because of the Vietnam war. Shortly after unpacking, I applied for landed immigrant status. A few months later I received in the mail an induction notice from the US Army; I drew a peace symbol on it in felt marker pen and mailed it back. As a result, I was indicted and a warrant was issued for my arrest (both were quashed in 1977 by the Carter amnesty).
I became a Canadian citizen in 1975. In 1976, for the US Bicentennial I wrote a political letter to Henry Kissinger, then Secretary of State. In it I mentioned that I had "renounced" (I didn't then know of "relinquish") my US citizenship on becoming a Canadian, explaining in several pages my reasons for leaving the US. I also mentioned the fact that on my mother's side I am a descendant of a soldier who fought in Washington's army during the US rebellion, but now I was declaring my personal independence from the US and rejoining the British Commonwealth. Within six months, I received by mail a CLN recognizing my having expatriated myself from the US in 1975. I filed away my CLN and forgot I had it, until I found it after searching for it upon learning of FATCA and OVDI in August 2011. Since then, I proudly keep a photocopy of it with my passport (which is Canadian; I have never had a US passport in my life, nor will I ever).
As a Canadian who long since ceased being an American and who has a CLN, I am not directly affected by FATCA or other US taxation outrages. However, my wife and several of her friends are affected, until their relinquishment CLNs (dating from 30-40 years ago) are issued. Also I have several close friends who were born in Canada of US parents and are considered by the US to be US citizens, though they have never lived in the US, worked there, earned income there, held property there, held US passports, or in any other way excercised USC and are horrified they might be considered US. I am active on this website and in writing my elected Canadian politicians about these issues, on their behalf.
I am a retired former employee of the Government of Canada who faithfully and proudly served his adopted and adoptive country for many years.
Updated September 2, 2012: earlier this week, my wife finally received her relinquishment CLN, State Department formal recognition that (in their exact words on the CLN) she "ceased to be a US citizen on" the date she became a Canadian more than 35 years ago. Mission Accomplished, to borrow words from my least-favourite contemporary/contemptible American. I will continue to monitor this website from time to time to see if I contribute useful information or opinions, but my wife and I are determined to regain our lives after the past twelve months of angst. Best wishes to all of you on this website in your odyssey toward freedom from the US.
SwissPinoy,
Yes, but for some people, it doesn’t matter how much time they accumulate.
@Badger
My curious border agent also tried to bait me with a few thinly veiled insults to Canada, but as much as my inner honeybadger wanted to pounce, I realized that I was dealing with something more lethal than a cobra or black adder here.
@Atticus, the British lady might not have been “barred” for life, but the video said that her subsequent attempts at getting a visa were denied.
After the tribute article on Ty Warner prosecution I mailed the author (Becky Yerak). I actually got a response asking if I could be interviewed if they decide to cover the other side of the story.
It might be worth others sending the horror stories of PFIC, OVDI/P, FBAR etc to this author so she gets an idea of the big story behind this. I don’t think I could do anything now as I am still in OVDP.
http://articles.chicagotribune.com/2013-09-18/business/chi-ty-warner-tax-evasion-20130918_1_tax-evasion-offshore-voluntary-disclosure-program-ty-warner
@Neill, Did you visit this site prior to entering OVDP or after. Your screen name sound familiar.
Why did you choose to enter OVDP?
I entered OVDP way before I posted on this site. I thought the OVDP was the only way to go. I thought my choices where OVDP, quiet disclosure, disclose going forward, ignore the whole thing.
We wanted to become compliant so OVDP was we thought our only option. Of course at this time I thought the IRS just wanted the tax and some reasonable penalties. I had no idea how bad it would be. Some of this is my fault for not working out the numbers ahead of time. Even then though they pulled a bunch of tricks on us like the no-refunds but you have to pay the tax trick for the M2M method. I had worked out PFIC was bad but not really how bad.
This is an excellent video showing all the issues when an American moves abroad and too bad something like this wasn’t shown to us when we moved abroad!
@ brockers.wasn’t sure where this link should be posted….. has anyone seen this? Levin is at it again. burden of proof shifting to USPs….. sigh…. just like the Ex-PATRIOT act provisions on covered expats./
http://www.levin.senate.gov/newsroom/press/release/summary-of-the-levin-whitehouse-begich-shaheen-stop-tax-haven-abuse-act?goback=%2Egde_3731046_member_275160877#%21
every day I celebrate now that I have my CLN.
but I do miss America. I miss knowing that I could go stateside if required and take care of my ageing parents.
@crystal london
Meh. As far as I can tell Levin has ‘unveiled’ this pet Stop Tax Haven Abuse Act project at least once each year since 2008. Of course, the act’s effects are more or less entirely unmoored from its title, which also fails to create a catchy or sophomoric acronym (and is perhaps why it continually fails to pass).
Levin’s other pet project is Cut Unjustified Tax Loopholes Act, which is at least an improvement on the first since because acronymically it almost spells a word (and a piratical one at that!). He has said he won’t stand for re-election in 2014. His departure can’t come soon enough. I suspect that if you cut him open you would find he is composed of pure spite.
@Watcher
Thanks for this morning’s chuckle.
@crystal London, @watcher and @all
Can someone please tell me what the USA will do, even if I sign the bank papers that I am an American person…I get no American income. just pension money and have RRSPs.. Does my bank give the USA money out of my bank accounts?
I became a Canadian citizen in 1993 and am waiting for the CLN to come through. I went to Toronto US counsel.
I have no intention of ever going back to the USA…There is no reason to.. I won’t miss it all.
The Cruise Ship industry must love Levin…(I am being sarcastic)…may he never decide to take a cruise unless he is prepared to be keelhauled 😉
Imagine how transportation of goods and services into the USA would come to a halt…
@Benedict Arnold, it would really put new meaning into the term “Buy American” when shippers no longer had access to the US market. The time is coming, when basic necessities like clothing will come only at an extreme dollar price, IMO.
@Benedict Arnold be me
Imagine a career barnacle like Levin being keelhauled.