The inter-governmental agreement (IGA) between the USA and Canada which will enforce FATCA in Canada has an interesting line on page 27:
With respect to New Individual Accounts not described in paragraph A of this section, upon account opening (or within 90 days after the end of the calendar year in which the account ceases to be described in paragraph A of this section), the Reporting Canadian Financial Institution must obtain a self-certification, which may be part of the account opening documentation, that allows the Reporting Canadian Financial Institution to determine whether the Account Holder is resident in the United States for tax purposes (for this purpose, a U.S. citizen is considered to be resident in the United States for tax purposes, even if the Account Holder is also a tax resident of another jurisdiction) and confirm the reasonableness of such self-certification based on the information obtained by the Reporting Canadian Financial Institution in connection with the opening of the account, including any documentation collected pursuant to AML/KYC Procedures.
We have to understand that US tax code treats US persons (i.e., US citizens and permanent residents) who live abroad as resident in Washington DC. The IGA appears to acknowledge this fiction, saying that for tax purposes a US citizen is resident in the USA, their Canadian residence and citizenship notwithstanding. The Tory government has now accepted the US fiction that US citizens abroad are not entitled to representation because they are resident in Washington DC. This amounts to financially kidnapping Canadian citizens and turning them over to a foreign government. Such an action by the Harper government is treason. Please contradict me if I am wrong.
If the bank asks me where I was born, I plan to say “Eritrea”
@ GwEvil
“If the bank asks me where I was born, I plan to say “Eritrea”.
Best line EVER! 🙂 Trying to write about FATCA and CBT breaks my head so bad sometimes. A little thing like that can put it together again … somewhat … at least temporarily. And you did a great interview too. Thank you!
In the Russian article:
“However, China, Belarus, Cuba and Myanmar said that they would not even read the document”.
Lets hope that;s true. If China does not sign up I don’t see how this can be enforced.
@The_Animal
Great letter. How are you implicated to be a USC? sorry, I’m new to IB, and may have missed your story.
@GwEvil
Me too! Small world, eh?
@Osgood
Ha, the Russians and Cuba, China, Belarus snd Myanmar don’t sign. How does USSA explain that?
@always_something: I’m not, but my wife is a USC (soon to be losing her blue passport). And with that, if I hadn’t removed myself from joint accounts held, the IRS would have turned around and taken a snoop through my financial dealings.
…and I get a little touchy when the IRS turns around and snoops through my dealings in the course of going through hers. Then again, I’m already touchy and PO’d that they’re looking through hers and attempting to give my children US citizenship (she’s the mother) through maternal eligibility for US citizenship. No way in hell are they going to become US citizens.
@The_Animal
*and I get a little touchy when the IRS turns around and snoops…*
I get it cause I am in the same boat. The canadian gov’t is careful how they share our info with each other but when the US comes slamming on the door.. They are just throwing all our info regardless of who is suppose to see it & where its is going. We are suppose to fend for ourselves… we are less worthy then criminals… at least they have a chance to prove they are not guilty… we are guilty as we breathe…
FreezingDarkness, the problem is that FATCA is signed and the majority govt has the votes to pass it. I belong to the third party who has no real ability to do anything and whose main focus is gaining some sort of power. FATCA is complicated and the narrative already written for it by the media makes it a losing issue for a party that needs to regain standing. I am unlikely to get anywhere with it though I don’t plan to stop bringing it up.
That’s the other problem – being a single issue person. I am not. There are many issues that are important to me and FATCA is but one. Perhaps if I wanted to hang on to USC or wanted to encourage my child to do that but I have made up my mind that Canada is my future. There are many things that need work. FATCA is but one.
But I get your point. Most people have given up on govt or even bothering to keep track of the issues b/c they figure there is no point and in the end, we all die anyway so why not do it in blissful ignorance?
@Yoga Girl
Absent some leader with strength and purpose – someone who can talk about fundamental principles of justice with the intensity of conviction, someone who can challenge Canadians to take up the responsibility of nationhood – seems like the legal option is the place to look. I’m hoping that a Charter challenge, regardless of the legal outcome, will add fire to the debate, and wake people up to what is happening to governance in Canada.