Liberty and justice for all United States persons abroad

Thank you, Elizabeth May — Justin Trudeau, listen up!

January 28, 2014, Elizabeth May, Green Party Leader and Member of Parliament for Saanich-Gulf Islands: IRS Tax Collection: Evasion of the US or Invasion of Canada?


The federal government must refuse to sign the Inter-Governmental Agreement to implement FATCA and instead advise their US counterparts that these policies are an unacceptable intrusion into Canadian sovereignty, and work to develop an arrangement that would mitigate the effects of current US tax laws that unjustly target honest Canadian citizens. These measures should be examined by the appropriate House of Commons committees, in consultation with the Privacy Commissioner of Canada.

We must not permit Canadian financial institutions to comply with FATCA in violation of our own privacy laws, and if the US attempts to enforce FATCA against them, we must vigorously respond and seek legal remedy as is our right.

If the US feels the existing Canada-United States Convention with Respect to Taxes is not working, they should provide specific details and suggestions on how to improve it through legislative amendment without sacrificing the rights of Canadians to foreign interests.

51 thoughts on “Thank you, Elizabeth May — Justin Trudeau, listen up!

  1. There is a case to be made that this issue is the ONLY issue that Americans in Canada care about and that every effort should be made to eventually get the millions of Canadian citizens and US Persons affected by this to completely ditch the main stream parties and get the Greens elected in as many ridings as possible as they have earned it. We should put superhuman effort into making sure that they change the balance of power. If the other parties don’t think we have the power and that there are other issues that would stop us from voting Green they are sadly mistaken and totally misjudging the situation. If we go down then we go down fighting and we will get our revenge by voting Green. That is how I see things …….at the moment. The next election will definitely be a one issue election and so we should spread the word that the mainstream parties sold out Canada and sold out 5 million innocent people. All I can say is that the other parties better smarten up right now and kill this thing and do it now or suffer the consequences.

  2. @ broken man
    Right you are. I still have it in my files (same words, different page layout). I hope Elizabeth May still has the same attitude one year later.

  3. I don’t think we’ve heard much of anything for quite some time from Elizabeth May re: the American tax invasion. Hmmmmm. Elizabeth has gone a bit stale on FATCA. Thomas has had a late FATCA wake up call. Justin needs to take a quick course in FATCA facts. Stephen won’t see FATCA anyway except whatever way he is told to see it. Politicians are so agenda driven and rarely see the needs of the people. I miss Tommy Douglas. I was just a kid then but I remember hearing him speak and thinking he sounded like such a kindly man. We could use some kindly politicians these days.

  4. @Em
    Tommy Douglas is the greatest Canadian to live. A few years back Canadians voted in a natioal poll, he was number one.

  5. In the present context I’d vote for Trudeau… Pierre, that is, for the Charter of Rights – that may turn out to be the critical bedrock of principle projected from a past where concepts like human rights and sovereignty were active topics in political discourse. Can you imagine any government today that would create such a thing?

  6. This is my reply to my morning Liberal Party email:

    From: carol tapanila
    Sent: Wednesday, January 29, 2014 11:00 AM
    To: Justin Trudeau ; Ted.Hsu@parl.gc.ca ; scott.brison@parl.gc.ca
    Subject: Re: Big News: Ending partisanship and patronage in the Senate — but FIRST protect the Rights and Freedoms of ALL Canadians

    Mr. Trudeau and all members of Canada’s Liberal Party,

    Here is an update on what the Green Party knows about FATCA and what you should learn. http://www.greenparty.ca/statement/2013-01-28/backgrounder-canada-and-fatca

    I hope you will look and listen to some of the comments, a few below from so-called ‘US Persons’ in Canada. Well past time to get up to date on the important issue of FATCA, combined with US citizenship-based taxation, that has been hidden from ALL Canadians. Extra-territorial FATCA will be a cost to ALL Canadians, leeching away funds from the Canadian Treasury and, most importantly, deeming Canada an unofficial 51st state of the USA with loss of sovereignty.

    1) There is a case to be made that this issue is the ONLY issue that Americans in Canada care about and that every effort should be made to eventually get the millions of Canadian citizens and US Persons affected by this to completely ditch the main stream parties and get the Greens elected in as many ridings as possible as they have earned it. We should put superhuman effort into making sure that they change the balance of power. If the other parties don’t think we have the power and that there are other issues that would stop us from voting Green they are sadly mistaken and totally misjudging the situation. If we go down then we go down fighting and we will get our revenge by voting Green. That is how I see things …….at the moment. The next election will definitely be a one issue election and so we should spread the word that the mainstream parties sold out Canada and sold out 5 million innocent people (extended from the actual dual citizens). All I can say is that the other parties better smarten up right now and kill this thing and do it now or suffer the consequences.

    Your statement: “Meanwhile Thomas Mulcair is promising to abolish the Senate, which is either deliberately and cynically misleading, or empty and foolish. His promise would require the most significant amendment to the Constitution since the creation of the Charter of Rights and Freedoms.”

    Speaking of Canadian Rights and Freedoms, that in my opinion should be your priority, not more Senate drama. Our rights and freedoms should be the bedrock of any other issue:

    2) In the present context I’d vote for Trudeau… Pierre, that is, for the Charter of Rights – that may turn out to be the critical bedrock of principle projected from a past where concepts like human rights and sovereignty were active topics in political discourse. Can you imagine any government today that would create such a thing?

    Justin, what are your views of the answers to Q121 (Liberal MP Ted Hsu) and Q127 (Liberal MP Scott Brison)? Or is this not right up there in your priorities? We need to hear directly from your mouth your own views before ever thinking of giving you our support.

    3) The Ministry of Justice refuses to answer important questions regarding FATCA IGA and the rights of Canadians in Canada under the Charter. It cites client-solicitor privilege To me this says:
    – In this matter, the Harper Government views its relationship with Canadian citizens as adversarial.

    – Justice may well be concerned about legal impediments to the FATCA IGA. If it were clear sailing with no conflicts of law, why would they lawyer up and refuse to comment?

    4) Simply put, I feel that any Canadian who allows the US to partake of his/her banking information is undertaking economic treason against Canada. That could be a potential argument against FATCA. That’s why I refuse to submit any tax information because of the situation that I’m in. I live in Canada, I was born in Canada. Why the hell should I have to open up my bank accounts to the IRS because my spouse was born in the US of A? HELL NO!

    The person who commented just above has a son with ‘mental incapacity’ (I know many such families; there will be many more such families) and these Canadian “accidental US citizens from their moment of birth in Canada” are entrapped by US Department of State immigration/nationality law into US citizenship that they cannot understand so cannot renounce nor their parent, their guardian or their trustee given the right to do so on their behalf, even with a court order. These are among Canada’s most vulnerable.

    http://podcast.cbc.ca/w6/worldatsix.mp3 CBC World at Six January 28, 2014, Starts @ 10:00 James Fitz-Morris: FATCA ( and US Reciprocity Hypocrisy? )
    Government of Canada seeking RECIPROCITY … one of the biggest sticking points in the negotiations as the U.S. WON’T LET OTHER COUNTRIES’ LAWS TO BE ENFORCED ON ITS TERRITORY!

    5) At least the US has some conception of their own national sovereignty. Why doesn’t Canada have the same? Or at least our current government?

    6) Canada should hold out for strict reciprocity, and only agree to send the US information on the interest earned in Canadian accounts by RESIDENTS OF THE US. This would effectively change FATCA reporting in Canada to a residence-based system, rather than a citizenship-based one.

    It also would ripple around the world to other countries with IGAs, all of which state that that country gets the benefit of any better terms given to any other country.

    7) What a two faced attitude. Canada should take the U.S. to the International Court. Although the U.S. won’t recognize the Court’s authority the fact is that the publicity will be enough to throw the covers off U.S. hypocrisy. Canada could also take steps under NAFTA, and the WTO. I am sure that there are other trade agreements that could also serve as a forum for fighting this law.
    The last thing that a bully ever expects is a fight. Therefore that is the best way to defeat the bully.

    8) …don’t you think the only other way for non-discrimination would be the absurd move to send ALL Canadian’s account information to the U.S.? The absurdity of it all knows no bounds.

    Just what is the purpose of US citizenship-based taxation other than the pillage of US Person Abroad privacy of financial information and subsequent penalties? Just WHY would it not be changed to that of the rest of the world, RBT (residence-based taxation)?

    Yes, and the Canadian population would rise up if everyone’s account info was sent to the IRS!
    Thank God for our Charter and Peter Hogg to point out our protection. CBT is unjust and we will fight this injustice to the end!

    9) Food for Liberal Party thought:

    1.) Canadian Banks should suffer the same penalty structure that US banks would suffer, the diminimis $100 fine, not the 30% withholding on all the banks US income. Or better yet, US banks should suffer 30% withholding on Canadian source income. Good for the goose, good for the gander.

    2.) Canada should demand in depth reporting on all Canadian Persons and Citizens with accounts in the US subject to penalty. Absent that in the view of reciprocity, Canadian Banks should only be reporting on accounts held by US homelanders. Canada should ask for this now while they have leverage in case they decide to tax Canadians in the US. If they do not get this now, they will never get it later if and when they need it.

    The more I think about this, the US would be absolutely screwed if Countries around the world as a means for reciprocity taxed their worldwide citizens in countries which taxed their taxed worldwide citizens. Meaning all ex-pat _Canadian & other countries_, living in the USA and Eritrea would be taxed by their respective homelands. “Reciprocal Citizenship Based Taxation (RCBT).” Maybe that should also be suggested, not that your government would do it but it is a way to bring attention to the masses. Why does the US get to tax US persons in Canada AND Canadian Persons in the USA? They are getting twice as much and Canada gets the big fat ZERO. Besides we know that the US is a tax haven with tax shelters and lower tax rates, Canada is none of these things.

    3.) If Parliament is going to ratify this into law, the agreement should require the US Senate to ratify it so Canada can be ensured it will not be subject to legal challenge in the US.

    Essentially Canada should ensure and insist on “mirror reciprocity.”

    Remember that “reciprocity” is simply a nicer word for “retaliatory.”

    I could go on with what so-called ‘US Persons’ in Canada comment, but I’d like you to consider those above and start to have a discussion with so-called ‘US Persons’ in Canada and realize how the combination of FATCA and citizenship-based taxation will affect so many individual Canadians, their families, their business partners. Quite a lot of voters to become aware and get out to vote.

    I take that back. One more thing for you to consider:

    10) …Master Nationality Rule and even dominant nationality….you need to educate your politicians that you are CANADIAN not some hybrid genetic modified crop!

    All you want is to be treated as Canadian. The US has no claim to you in Canada and you have no right to ask the US for help whilst in Canada.

    Dual nationality is a cute phrase that has morphed into something that is causing us all trouble.

    Further the US State Department agrees with that in their publication 7 Fam 080.

    Really, the solution for Flaherty is rather simple. Canadian Citizens that lost life’s lottery by being born in the USA are well they are Canadian, nothing more and nothing less. There should be no further questioning, this idea of US indica is so degrading.

    Yes, I do see US Citizens (only) in Canada getting tossed under the bus but not sure how to prevent that other than encouraging them to become Canadian.

    I hope that you will actually personally see and read my email and will personally answer to all so-called ‘US Persons’ in Canada – we want your own views.

    I will never give up; never give up; never give up. I / We are Canadians and want to be protected as any other under the Canadian Charter of Rights and Freedoms. That should be a line in the sand – Canada could be a leader for the rest of the world in standing up for ALL of its people. We don’t want a two-tier citizenship model in Canada, but one-tier only for ALL Canadians no matter where they were born or where their parents were born. The rights of so-called ‘US Persons’ in Canada should not be waived which will deem them second-class Canadians to all others.

    Regards,
    Carol Tapanila
    Calgary, AB, Canada

    From: Justin Trudeau
    Sent: Wednesday, January 29, 2014 9:25 AM
    To: Carol Tapanila
    Subject: Big News: Ending partisanship and patronage in the Senate

    Le français suit l’anglais

    Carol —

    SENATE REFORM ACTION:

    * Effective immediately only elected Members of the House of Commons will serve as members of the Liberal Caucus.

    * Effective immediately all 32 Liberal Senators are released from their partisan responsibilities, making them Independent Senators.

    * A commitment to implement an open, transparent and public process for appointing and confirming Senators.

    * A commitment to appoint independent senators only.

    When a public institution like the Senate fails to serve the public interest, a leader must take bold steps to change it.

    Today I did just that, accomplishing more Senate reform in one day, than Mr. Harper has in the past 8 years.

    Please read this important message — and then I encourage you to add your name to show your support.

    Canadians have made up their minds. The Senate is broken, and needs to be fixed.

    As I see it, the Senate is suffering from two central problems: partisanship and patronage.

    Paired with patronage, the pervasive issue of partisanship and control in the Senate is a deeply negative force. We need immediate action to address this.

    As of today, only elected Members of the House of Commons will serve as members of the Liberal Caucus.

    Further, the 32 formerly Liberal Senators are, as of now, independent of the national Liberal Caucus. They are no longer part of our parliamentary team.

    I challenge the Prime Minster to match this action — and I’m inviting you to add your name to join this call.

    Meanwhile, by ending partisanship now, we can also end patronage, going forward.

    The antiquated convention that sees Senators appointed by one person, and one person only, has led this historic public institution to be run like the Prime Minister’s private club. That’s just plain wrong.

    That is why I’m committing today that, if I earn the privilege of serving Canadians as their Prime Minister, I will put in place an open, transparent and public process for appointing and confirming Senators. And that is why I am committing to appoint independent Senators only.

    This decisive action is one that I do not take lightly. And I believe this is the most meaningful action possible without changing the Constitution.

    Despite great promises, Stephen Harper has had 8 years to offer meaningful Senate reform, but instead we got Mike Duffy, Pamela Wallin and Patrick Brazeau.

    Meanwhile Thomas Mulcair is promising to abolish the Senate, which is either deliberately and cynically misleading, or empty and foolish. His promise would require the most significant amendment to the Constitution since the creation of the Charter of Rights and Freedoms.

    Mr. Mulcair may want to spend the next decade arguing about the Constitution. I want to spend it helping Canadians solve their problems.

    Add your name now — and join the call for Stephen Harper to end partisanship and patronage in the Senate:

    http://www.liberal.ca/senate-reform-action/

    Thank you.

    Justin Trudeau

    Leader, Liberal Party of Canada

  7. Carol. Et al. I admire your spirit. Just 1 caveat. As Mark Twain said ‘Very few sinners are converted after the first 5 minutes’

    What this means in JT ‘s case is that some intern reads your e-mail and puts you down as ‘undecided’
    JT never sees it.

  8. The Senate “thing” is actually a bigger deal than it appears. It “might” and just “might” lead to a breakup of the Conservative Senate caucus.

  9. LOL, how sad but true, KalC. But, it’s off my chest and better in my mind.

    And, I do know, I go on and on and on.

  10. If anyone wants to discuss the promised NEW Green Party policy statement they can phone 705-730-7591 and Erich Jacoby Hawkins the finance critic wants to explain to each and every one of you why they have not issued it yet. I can’t get it out of him. He promised it 2 months ago. Anyone else care to try? Please do. Ask him why he is delaying such an important (to 5 million people in Canada) statement. When I talked to him I was assured that the statement would be released in a few days and he was putting the finishing touches on it. To me he is being evasive. However they have indeed come out with the strongest position statement yet, I am upset at him for the delay. He said “we are not on your schedule, sorry”. I said for him to tell that to 5 million people this affects in Canada.

  11. @ALL
    THis is my letter that I received in answer to email I sent last July From the son of the man I loved.

    He is not the man his father was. I wrote him back and said the letter looks like a form letter . I also told him the letter makes me think he will sign FATCA. and that he is selling me for 30 pieces of silver ( the 30 percent the USA threatens to take from our banks.) I am so deeply depressed.

    justin.trudeau@parl.gc.ca
    2:28 PM (35 minutes ago)

    to me
    Dear Northernstar,

    Thank you for taking the time to write to me with your concerns regarding the Foreign Account Tax Compliance Act (FATCA).

    Despite its good intentions, the unfortunate consequence of FATCA is that Americans who hold dual citizenship still fall under its authority, and it requires access to their financial information through their banks. As a result of FATCA, there has been a surge in US citizenship renunciations over the past few years, and this trend continues to grow.

    I share your concerns about personal privacy, an issue that is increasingly important to all Canadians. The Conservative government’s efforts to protect the personal privacy of Canadians have been inadequate. The implications of having Canadian banks report directly to a foreign government agency are troublesome. The Liberal Party of Canada will continue to press the government on this issue, and demand a closer examination of FATCA’s effects.

    Thank you once again for writing to me and taking the time to share your concerns with me. It is through such exchanges of ideas and opinions that I can best represent not only my constituents, but all Canadians.

    Sincerely,

    Justin P. J. Trudeau
    Member of Parliament for Papineau
    Leader of the Liberal Party of Canada

  12. @northernstar

    His reference to “dual” citizens is typical of the cluelessness of the average person. It implies a special status for those who have Canadian and American citizenship, which is dominant over Canadian citizenship. There’s no such creature as a “dual” citizen, unless they come from Dual-land. I expected more from him.

  13. @bubblebustin
    when you put it like that I had to laugh…my first laugh after receiving this. I found myself so stressed out with this email for JT

  14. Our Canadian parties and their leaders don’t really see FATCA as a big deal. After all, they pretty much daily bow to the US on a host of issues and ours, in their eyes, is simply a banking issue that falls under the heading “the price of doing business”. Business, more than mere people, is what government has really only ever been about. The people thing grew out of necessity and appeasement and pandering.

    What’s interesting about the Canadian House of Commons is what groups they consider worthy of the effort to pander to them.

    For example, Monday – their first day back to work in over a month – they all took turns grandstanding about the plight of the Ukraine for the benefit of courting the Ukrainian vote in Canada. There are only 1.2 million Canadians who are or are of Ukrainian descent, but there are like twice that many or more Canadians who fall under the USP designation, given how elastic and subject to change that is.

    Yet Ukrainian-Canadians count more.

    Interesting.

    It’s been brought up, more than once, that the only real solution is to be just Canadian (or French or Swiss or whatever). For USP’s in Canada, the bigger issue is how to make this happen faster for those who are still waiting to either apply for citizenship or to get through the endless processing and to ensure that we will still be allowed to relinquish or renounce without penalty.

    It’s also a good idea that we continue to raise the alarm so that new USC’s aboard and potential USP’s understand the implications of FATCA and CBT, so they can take steps to protect themselves.

    Oh, and I agree with the assessment about the Trudeau’s Senate move today. Nicely played. JT has said more than once that he is staking his political career on this rebuild of the Liberal Party. Make no mistake. It is a rebuild. Nothing is set in stone and he isn’t likely to make promises or even discuss in any sort of depth any issue until closer to 2015. If you are hoping for definitive FATCA statement, you will be disappointed. He appears to be staking everything on 2015 and the outcome. I don’t think he will help us and honestly, he has just 26 MP’s. He can’t help us.

    Someone in some comment in the past couple of days mentioned that the best way to repeal a law is to let it be enacted and wait for the fallout. That’s likely to be the case with FATCA in the longer run, but there is still nothing but rumor right now in Canada about the IGA. The current House session ends in May. July is the FATCA deadline. If it’s going to happen this year, it’s gotta be soon, right?

    I still think FATCA is going to be pushed back another year given the miserable IGA response and the fact that Obama can’t afford another bad law rollout on top of the healthcare fiasco.

  15. @All

    Just in cased you missed it. I got this today from Justin Trudeau

    justin.trudeau@parl.gc.ca
    2:28 PM (1 hour ago)

    to me
    Dear NorthernStar

    Thank you for taking the time to write to me with your concerns regarding the Foreign Account Tax Compliance Act (FATCA).

    Despite its good intentions, the unfortunate consequence of FATCA is that Americans who hold dual citizenship still fall under its authority, and it requires access to their financial information through their banks. As a result of FATCA, there has been a surge in US citizenship renunciations over the past few years, and this trend continues to grow.

    I share your concerns about personal privacy, an issue that is increasingly important to all Canadians. The Conservative government’s efforts to protect the personal privacy of Canadians have been inadequate. The implications of having Canadian banks report directly to a foreign government agency are troublesome. The Liberal Party of Canada will continue to press the government on this issue, and demand a closer examination of FATCA’s effects.

    Thank you once again for writing to me and taking the time to share your concerns with me. It is through such exchanges of ideas and opinions that I can best represent not only my constituents, but all Canadians.

    Sincerely,

    Justin P. J. Trudeau
    Member of Parliament for Papineau
    Leader of the Liberal Party of Canada

  16. Response to Trudeau: I am not an American who holds dual citizenship, I am a CANADIAN who holds dual citizenship. And since when do Canadians living in Canada fall under American authority?

    Trudeau continues his fail on the FATCA file.

  17. That reply from Justin Trudeau is too weak.

    Maybe Deputy Leader Goodale http://www.ralphgoodale.ca/ can explain it to him – MP Goodale had this strong and forthright to say way back in the fall of 2011; “….Our government must stand shoulder-to-shoulder with innocent citizens and taxpayers – to inform and assist them in fending-off abusive American tax enforcement proceedings.“…” http://www.ralphgoodale.ca/blog/fighting-the-long-arm-of-the-u-s-tax-man/ Well worth reading the rest of the statement and see this from Parliament http://openparliament.ca/search/?q=MP%3A+%22ralph-goodale%22+irs Perhaps those writing to Trudeau can cite Goodale as a good start of a primer for JT to study on the issue, along with articles like this one http://www.canadianbusiness.com/blogs-and-comment/ted-hsu-and-scott-brison-have-questions-about-the-coming-u-s-foreign-account-crackdown-good-questions/

    Looking to 2015, then its the Greens or the NDP for me. I respect and am thankful for individual Liberals like MP Hsu and MP Brison’s recent efforts (questions of October 2013) , also keeping in mind that NDP MP Mai submitted a masterful, forthright and very informed set of similar questions in Parliament in early 2012 http://openparliament.ca/search/?q=MP%3A+%22hoang-mai%22+fatca But I want to see a strong and unequivocal statement from the Leader of the Liberals, and a Party wide statement too.

    The NDP BC Caucus came out swinging on FATCA, CBT and FBAR with a letter to the Harper government VERY early on. The Greens – (who have very thin to no resources and staffing power ) regardless of the unexplained delays in raising questions in Parliament, sent a representative to the first FATCA forum, and posted the first party wide statement on FATCA.

  18. @All
    I sent a reply to Mr. Trudeau saying I felt he will betray me if he signs FATCA and that his letter seemed to be a form letter.
    I sent a 2nd reply with the encouragement of my Brock friends. that included Allison Christian’s words.

    I wish to also add this to my reply to your email I sent to you last July.

    It is one thing for the USA to say to individuals across the planet: if you have status under our law you must follow all of our laws no matter where you are. It is another thing entirely for Canada as a nation to voluntarily, with no compensation except the conditional promise of removal of a threat of economic sanctions, assist the United States in globally rounding people up to force them to comply with its patently untenable and unjustifiable position. Such assistance fundamentally conflicts with a universally recognized (and far more just) jurisdictional claim based on actual residence, which Canada practices along with the rest of the world.

    (the below words are my own)
    And remember that many people in Canada have dual citizenship…There are many dual citizenship Canadians from countries all over the world. What will you do when China wants the same thing the USA wants Canada to do for their citizens? or Russia or North Korea, or Syria, or Eritrea?

  19. @ tdott amen for “I am not an American who holds dual citizenship, I am a CANADIAN who holds dual citizenship” very true words and that is why i have a copy of my certificate of citzenship in my desk so i can show it to the banks if or when the day comes when i am asked to show proof of citzenship.

    @ YogaGirl “Yet Ukrainian-Canadians count more.” yup i was taken back by the grandstanding as well. i got the distinct feeling that we don’t really matter to anyone in ottowa right now and would rather we just go away and quit bothering them.

    i just another customer in my store who has both us and canadian citzenship. he had never heard of facta or IBS but he is aware now. his intial reaction was the usual “no way can that happen here”. unfortunatly for him he has both cross border business and family ties he can not cut.

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