Today, Lynne Swanson (Blaze) participated as part of a panel on the Finance Committee’s study of Part 5 of Bill C-31 – the Canada-United States Enhanced Tax Information Exchange Agreement Implementation Act (or, as I call it, the Canada-United States Abrogation of Canadian Rights Agreement’.
Essentially, Lynne was invited to speak about FATCA and the IGA. I, for one, admire her bravery and commitment to our shared cause and her willingness to appear before the committee and not only speak, but answer questions from the committee members.
She only had 5 minutes for her opening statement, and then was expected to answer questions from the members of the committee. At the time of this posting, I don’t have a full report on exactly what was said and asked. We will provide that as soon as we can.
What I do have is the speech Lynne prepared in advance. I most sincerely hope that her very eloquent statement fell on receptive ears.
UPDATED LINKS TO THE VIDEO:
ParlVU site: The original ParlVU video
Isaac Brock Society YouTube channel: The entire meeting with links to Lynne, Allison Christians and Arthur Cockfield
Isaac Brock Society YouTube channel: An edited compilation of Lynne’s presentation and her interaction with the committee
Transcript of Lynne’s presentation:
I come before you as the voice of one million Canadians.
We are Canadians. Many have been Canadian citizens for life or for decades. We chose Canada. We expect Canada to choose us and our rights over foreign bully demands.
“Why do our most heinous criminals have more Charter rights than I do,” asks a Nova Scotia police officer of 33 years. He was born in Maine almost six decades ago because his New Brunswick mother was sent there to give birth.
A Quebec woman who has been a Canadian citizen since birth says her ancestor who came to Canada in 1682 must be turning over in his grave at FATCA.
A widowed Grandma in Vancouver was told by US Consulate when she became a Canadian citizen in 1972 she was permanently and irrevocably relinquishing American citizenship. She insists, “My financial records are definitely none of the business of the IRS.”
An Ontario First Nations husband and father is horrified his Canadian government will help United States seize his family’s financial records because his Native Canadian wife was born there.
An Alberta woman reports her mother who upheld Canadian laws for many years as Justice of the Peace is now medically and physically too frail to deal with FATCA stresses.
They and one million other Canadians were betrayed by FATCA Intergovernmental Agreement. We were offended and insulted to hear Minister of State for Finance call us “American citizens abiding here in Canada” in the House of Commons.
If Canada mandated financial institutions to seek Canadians born in China, India, Iran or Eritrea for CRA to transmit private financial information to those nations, there would be outrage.
Canadians born in United States should have the same rights as all other Canadians. Canada should strongly defend those rights and not sacrifice them to a foreign country.
Two prominent Canadians described FATCA well. In 2011 and many times after that, Finance Minister the late Jim Flaherty said “FATCA has far-reaching extraterritorial implications. It would turn Canadian banks into extensions of the IRS and would raise significant privacy concerns for Canadians.”
Terry Campbell, President of Canadian Bankers Association in 2012 called FATCA “the poster child for the problem of extra-territoriality…It threatens to erode Canadian sovereignty.”
Those statements hold true now. Under threat of economic sanctions and penalties, Canada surrendered its sovereignty to a foreign power with the IGA.
Canadians affected by FATCA were stunned last week when a member of this Committee said “Congress has spoken.”
Canadians expect Parliament to speak for Canada. Canadians expect Parliament to uphold Canada’s laws, rights and constitution. Anything less is an affront and betrayal to Canada and to Canadians.
FATCA is complex. I give you a simple solution. I urge you to adopt an amendment to the Implementation Act:
“Notwithstanding any other provision of this Act or the Agreement, for all purposes related to the implementation of this Act and the Agreement, “US Person” and “Specified US Person” shall not include any person who is a Canadian citizen or legal permanent resident who is ordinarily resident in Canada.”
I implore you. Do the right thing. Stand up for Canada and for all Canadians.
Here is the full-day session:
@Blaze
Ask Stephen, John, or Nobledreamer offline via email. To be clear I am just stating my personal view. Stephen is somewhat more optimistic but I emphasize the term somewhat. Me personally I am not holding my breadth that the video will ever see the light of day.
A lot of people in DC don’t like what we are doing especially things like yesterday.
Re the ACA video, I could see an organization like Democrats Abroad killing it, but ACA? I thought they were non-partisan.
@Tim, what do you mean things like yesterday? The finance committee hearing?
Do you think there could be personal retributions?
I watched Frontline “The United States of Secrets” last night. Chilling. That made me even more paranoid than I already am.
http://www.pbs.org/wgbh/pages/frontline/united-states-of-secrets/
I hope John talks more about the cost and penalties involved in becoming compliant, and states that probably most people aren’t, hence the potential huge cost on the Canadian economy.
@Calgary411
Thanks for cross posting my comment about Oliver.
I realize that he is new in his portfolio, but he should have made sure he was fully briefed before appearing before the Finance committee. My opinion is that his lack of preparation shows a disdain for the democratic process and any questioning of government policies. Wonder where that come from? His boss, perhaps?
@ Deckard
Thanks for your work on the video. I was going to wait until it appeared on CPAC, but you have made it much more accessible.
@ Tim
It will be a shame if the symposium will not be available. Many of us far away from Toronto were not able to attend. I did speak the other day to one of the panelists ( who works in the same office with someone I frequently communicate with) to get an impression of the meeting, but did not get a better feel for the tone of the symposium.
@noone
The Frontline show was absolutely fascinating. Well worth watching, but not before bedtime!
I wouldn’t worry about person retribution. Again me personally I am not holding my breath that the video will ever see the light of day.
As Stephen has pointed EVERYONE was very courteous however courteous doesn’t cut it in DC.
Tim and others,
I have just checked with John Richardson who says:
Hazy,
Many of us who were unable to attend on May 2nd in Toronto look forward to viewing the May 2nd video. Hope it will indeed soon appear on the American Citizens Abroad site. We haven’t stopped watching for that posting.
Tim said: “A lot of people in DC don’t like what we are doing especially things like yesterday.”
Awesome. We’re making progress then. Nice to know they’re paying attention. Let’s keep doing more of the same. We need more brave Canadian Grandmas to stand up to the bully that is the United States government.
@Tim,
I agree with John and cannot imagine that the video will not be produced. It’s just taking time.
—And yes, everyone (including me) was courteous.
@noone, agreed about the cost of compliance issue, and PENALTY GRAB that FATCA is. This was not discussed yesterday. Many have the notion that all you have to do is pay $450 and renounce US citizenship and problem is solved.
Re: The United States of Secrets, and OMG’s “the bully that is the United States government.”
The US is the insecure abuser who can’t see he is doing anything wrong. Rather than see how abhorrent his behaviour is, the abuser’s response is to tighten the screws even further hoping to prevent the slightest push-back.
The US believes that for the world, it is Mr. Right. And it’s first name is “Always.”
@Shovel: The United States is the abuser. Canada and all the other countries who are giving into “Congress has spoken” are enablers.
The abuser’s power lies in isolating the victim. We are not isolated, we are 1 million strong in Canada and even more when you count all other countries. Canada will be America’s undoing. They think we are a mild mannered people who don’t like to fight. We fight when there’s something worth fighting for. This is the war of our lifetimes and we will fight with everything we’ve got.
@Blaze
Yesterday you challenged Committee member Mike Allen to “stand up for Canada,” and he instantly retorted, “which is why we signed the IGA.”
You are spot on. The self-deception of the enabler.
@Blaze
I finally got to see the whole video and just want to say how thankful I am that you spoke on our behalf and to say what a wonderful job you did. I can’t imagine speaking in front of that group while knowing that we are all here counting on you to state our case. You were amazing. Thank you again SO MUCH.
OMG,
This is the war of our lifetimes, something we could not have imagined would have ever happened — given the advice we were given by US Consulates decades ago, advice from our Canadian accounts who prepared taxes for us, lack of education from the USA itself (as it does not educate persons entering into US Permanent Residence to this day), even border crossings into the US how many thousands of times to which a blind eye to “the US law that is supposed to be the law is the law — a “US citizen” must not enter the US with any other than a US passport”. This is about having our personal Canadian (and other country) retirement savings taken from, whatever inheritances we will pass on to our children robbed, the sovereignty of this country that we CHOSE to become citizens of and a good part of its treasury transferred to the US. It is about Canada not choosing to stand up for ALL Canadians under the Charter of Rights and Freedoms. But, do we mean anything in the big scheme of things? Or rather, should we? All Canadians and all of our government representatives need to ask themselves that question. We have tried asking the US to no avail as they cannot see any relevance for them having the same residence-based taxation as the rest of the world. It is punitive; it is about penalties even over the double taxation we will often be faced with.
Of course, because of all the millions already spent on getting this IGA signed and banks and tax compliance industry into place, it seems that collateral damage of Canadian families deemed “US” is acceptable: Financial Post, May 13, 2014, re Ian Russell, chief executive of the Investment Industry Association of Canada: “Don’t delay law for sharing tax information with U.S., Canada’s investment industry urges”
@Tim and all,
I honestly have no idea what you are talking about. I have talked with John quite a lot about the meeting that day, the video, the effect/value of the meeting and so on.. He is not at all of the opinion that the video will not be produced but rather, views it as a very important milestone in the issue of CBT vs RBT. I think many of us agree that the video may well be the most important/influential product of the meeting.
We had no way of knowing how any people were coming and all agreed that even if only 10 people came, the main benefit would be the video. So I can say without reservation that neither John, Stephen or myself would support any notion that the video will not appear, that there is “dirt” regarding any aspect of it’s production or any other negative perception that has or will surface concerning this issue.
As always, anyone who needs/wants to is welcome to contact me at nobledreamer16 at gmail dot com for clarification of anything I have just said.
@nobledreamer
Thanks for updating. As someone at the meeting I can genuinely say it was quite informative and perhaps one of the only discussions to ever take place in public on the issues we face. I do sincerely hope the video is released soon.
@ Blaze
Thank-you for standing up for us, I have so much respect and gratitude for all you have done.
Your message was articulate.eloquent and basic common sense.
@Tim
I am really looking forward to it as well since I was busy a lot of the time and couldn’t take notes. I think there was a really useful energy generated that day but mostly only remember the sense of that and not enough of the details. OLD!!! LOL
I must apologize for mis-quoting Blaze.
In fact she challenged Mike Allen to “stand up for Canadians.”
A subtle but important difference when one considers his retort.
Ian Russell’s comment was the most offensive of all. “we need to pass this IGA or we (the financial industry) will have wasted all this money getting prepared for FATCA.”
Lynn Swanson- what else can we say- Marvellous!
Mr. Berg- simply too esoteric for anyone to comprehend. Offensive.
Mr. Reed- dreaming in technicolour to think IRS will amend rules for TFSAs unless somehow forced to.
Prof. Cockfield Brilliant. He gives them a way out. Too bad they won’t take it.
Prof. Christians Very good but her arguments are way too sophisticated for simple minded cons MPs.
Mr. Rankin- He gets it.
Mr. Brison- Hung up on governments contribution to RESPs and RDSPs.
In summary-cons. government has folded to please the financial industry.
I think I am beginning to sense a wee shift in the attitudes of some of the Cons. They are no longer saying we are not Canadian citizens.
They are also no longer saying FATCA “does not impact Canadian citizens.” Were Keddy, Oliver, et al misinformed on that or simply misleading? I don’t know.
However, I do know we need to keep stressing that point. It is especially important to pound the message through to the Cons on the Finance Committee. If anyone is in Rajotte’s Keddy’s, Saxton’s, Allen’s, or VanKesteren’s riding, it is critical you get to them–especially if you are a Canadian citizen or a voter.
Ask them if they will support the amendment. If not, demand to know why not. Let them know you will be sharing their response on line.
Scott Brison has sent a revised and more detailed version of the amendment (but basically keeping it the same) to the Procedural Clerk to determine admissibility.
We need to get that amendment accepted at the Finance Committee Even one Con supporting it could help make that happen.
Rajotte also seemed to be willing to at least think about what Arthur Cockfield suggested about delaying the implementation until the Americans pass the law needed for reciprocity (which we know isn’t going to happen). Plus, with the recent announced delay of 18 months for some countries that haven’t signed yet, there is no longer a need to rush, giving the Cons some wiggle room.
@ bubblebustin
The whole self-centered industry of which Russell, Hannah, Berg and others are part of really want the IGA rammed through. They don’t want anyone to listen to the voices of we the victims (aka the voices of reason). Roy Berg is a compliance condor who swept into Canada 3 years ago, rubbing his talons in gleeful anticipation of a pot of gold at the end of a FATCA rainbow. Indeed he IS “personally and professionally vested” as he stated. His “jingoist, hyperbolic rhetoric” reference was very offensive (raised my back hackles for sure). Ahhhh, Mr. Berg, ahhhh … FATCA is NOT just like a sales tax — NO, NO, NO! His own pompous yet sycophantic (to Fin. Can.) rhetoric begins at 00:ll:49 on the IBS video.
@ Canadian Cop
Thanks, I’ll look for your comment this evening. The “industry” and their accomplices in our government may have the longest and loudest voices at these committee meetings but we are the voice of reason and that FP article needs some push back.
@ Deckard1138
Thanks for youtubing the video. It is so easy to navigate now.
RE: the ACA video
Would it help if we e-mailed the ACA asking them please to release it as soon as possible?
@Deckard1138
This inept Mac user thanks you for the YouTube posting.
@KalC
That comment from Ralf Hensel from the Investment Funds Institute of Canada angered me too. To use my chess analogy, if Canada would follow through with making Canada’s cooperation contingent on the US’s enacting FATCA in the US, we could easily find both countries in a stale-mate position. You’d think in recognition of this real possibility someone who’s in charge of investing money for people would seize the opportunity to avoid throwing good money after bad! I won’t be investing my money with him!
This is what the Investment Funds Institute of Canada said about FATCA in their Pre-2012 Budget Submission to Canada’s Standing Committee on Finance (that they’ve conveniently forgotten about, it seems):
“The United States, in an effort to combat tax evasion by their citizens have enacted the Foreign Account Tax Compliance Act (FATCA) and have also ruled that Canadian mutual funds are Passive Foreign Investment Corporations (PFIC). IFIC is asking that the Canadian government actively engage their U.S. counterparts to come to an agreement on FATCA that strikes a better balance between preventing tax
fraud in the U.S. and imposing additional costs and administrative burdens on Canadian investors and financial institutions. A PFIC agreement is also needed to ensure that U.S. investors maintain their access to the Canadian mutual fund market. This will help ensure that Canadian companies have the easy access to affordable capital that will in turn enhance economic growth and recovery. FATCA imposes costly implementation and administrative burdens on Canadian financial institutions that will end up being passed on to Canadian consumers. This will decrease the productivity of the financial sector and direct resources away from critical product and technology development that are the foundation of job creation. The current FATCA draft legislation also impinges on Canadian privacy rights. Canadian
financial institutions will be required to close the accounts of Canadian residents, who are also U.S. persons, if they do not sign a privacy waiver allowing the financial institution to send their personal information to the Internal Revenue Service. Under FATCA, Canadian residents who have no nexus to the United States may incur additional U.S. withholding tax because they do not wish to certify their non-U.S. person status. By designating Canadian mutual funds as PFICs, the U.S. has effectively closed off an important avenue for Canadian companies to raise capital. Under the PFIC rules, any income a U.S. tax payer receives from a Canadian mutual fund is taxed at the highest nominal rate under United States tax law – providing a powerful incentive to remove their capital from the Canadian market. On both FATCA and the ruling that Canadian mutual funds are PFICs, it is critical that the Canadian government work with the U.S. to protect our investors and the ability of Canadian companies to raise capital.”
For the entire submission made back in 2011:
http://www.parl.gc.ca/Content/HOC/Committee/411/FINA/WebDoc/WD5709773/411_FINA_PBC2012_Briefs/InvestmentFundsInstituteofCanadaE.pdf