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:
@ Shovel
It appears that the Con MP, Mike Allen, does not consider anyone with a US taint to be Canadian. Only those who are “pure” Canadian (not a speck of USness on them) or those who work for and earn their daily keep from the “industry” are Canadians in his eyes. Only for these will he stand up. This man is disgraceful.
“Injustice anywhere is a threat to justice everywhere.” – Martin Luther King, Jr.
@Em
I think it would be appreciated if we let ACA deal with it. It was their gig, not ours.
@bubblebustin and others
“This inept Mac user thanks you for the YouTube posting.”
You’re most welcome. Besides easier cross-platform access (including iOS on iPhones and iPads), we’re also trying to ensure that these videos remain accessible for years to come and YouTube seems to be the most logical repository for them.
Lynne, thank you, thank you, thank you.
As a dual from birth, repatriated as an infant, you are my hero.
@ Tricia
Gotcha. I’m not an ACA member anyway. I’m just being my usual impatient self. They did that terrific video explaining RBT so I’m just going to expect the best of them with this … and try to wait … patiently.
The Investment industry is missing a pretty fundamental step in trying to connect with ordinary Canadians – some reason they should care. Ordinary Canadians are going to understand the Lynne’s of this world and her anger and frustration at being relegated to second class citizen status. The threat of 30% withholding, on the other hand, a) is disingenuous because it is not going to happen (Canada has been on the exempt list from the beginning – the US NEEDS an IGA with Canada because we are too big to fail for them); and b) ordinary Canadians wouldn’t notice it anyway.
re (a) – I practically want to jump through the computer monitor screen when I see all those talking heads prattling on about the US threat of sanctions and how devastating it would be. Firstly, there is NO withholding for ANY financial institution that registers with the IRS for as long as the US Government calls Canada an IGA jurisdiction. We were on the list before we signed the IGA and we are certainly on it having signed the IGA (remember many other countries are on the list without an IGA) and there is no deadline for passing a bill to implement it. No data would be transferred before next year at the earliest in any event. I maintain that they will do so for as long as they can and even longer because the alternative is massive damage to the US (and Canada) vs ZERO anticipated upside in terms of expected net additional revenue in getting Canada in the tent. ANYTHING that looks like compliance will be accepted as long as it doesn’t embarrass them unduly. Carving out permanently resident Canadians for Charter reasons would not be enough to light a fuse under the Americans as it doesn’t threaten the gist of their jihad: finding fat cat cheats. Secondly, nobody – and I mean NOBODY – has done a serious study of the actual impacts of sanctions being imposed. They wouldn’t happen without warning – people would have time to order their affairs to avoid “withholdable” instruments and investments. The net result would be a drop in demand for US securities: do WE care? As well, has anyone asked Finance to consider the counter-withholding that Canadians could do to recoup any amounts withheld? For one of the biggest markets out there – OTC derivatives – set-off is virtually built-in as are termination rights for change in law.
re (b) – nobody reading this blog would notice withholding (OK, almost nobody). If you have US dividend paying shares registered with a broker that is non-compliant, you might find the dividend blocked. So don’t buy US shares – buy an ETF instead. That was easy. Personally, I don’t know many consumers lining up to buy US Treasuries for 0% interest, so I guess consumers won’t notice a withholding there. This stuff really only impacts institutions and their ability to trade with each other. It DOES impact the broader economy indirectly and it is not as if we shouldn’t care or notice. I’m only saying that the NET impact on institutions would be primarily the business they don’t do and the markets they are frozen out of. The US WANTS people to buy their stuff. We are pretty material to their market – and that’s before we get into WTO actions, NAFTA, self-help retaliation, set-off etc.
Lynn vs Investment Institute of Canada; the government knows Lynne will emerge the political winner every day of the week. M. Rajotte at least was showing some faint signs of getting it and reaching for alternatives. If he/they were smart, they’d call Christians and Cockfield for a tete a tete in Ottawa and plan strategy with the full picture before them instead of merely taking counsel of their fears.
I guess if the US doesn’t have any qualms about exempting non-residents, it would go a long way in proving they weren’t after us in the first place – that is if the forces that be don’t kill FATCA in the meantime. Stall, Canada. Breathe, banks. Cooler heads prevail.
@AnneFrank “If he/they were smart…” Therein lies the problem.
With that said, I think Rajotte has a gazillion times the smarts of Oliver. Why didn’t Harper name him Finance Minister? Oh wait, maybe because Rajotte has a gazillion times the smarts of Oliver or Harper put together.
I agree the Cons know the Lynnes will win this every time too. I think that is exactly why I didn’t get the “aggressive questioning” Murray Rankin’s Assistant told me to be prepared for. How can they argue with a Canadian Grandma with a maple leaf lapel and come out looking reasonable?
I think the tough on crime team knew not to take me on as soon as they heard “Why do our most heinous criminals have more Charter rights than I do,” asks a Nova Scotia police officer of 33 years. Add 1682 Quebec ancestry, a B.C. widowed Grandma, an Ontario First Nations husband and father and a frail retired female Justice of the Peace and they knew they were done on the citizenship issue. I intentionally tried to cover all the provinces those members represented with some of the most egregious examples.
I wish I had been in the room to observe their reactions. Murray Rankin called it “spirited.” I think the Cons probably called it something else under their breath.
Next step–hopefully the Senate and my own Con MP. This time, I will not accept him brushing me off by sending me a hand-out on my FBAR obligations.
Thinking about the about-faces the CBA and Investment Institute have made in their concern for us has got my blood boiling. Both organizations used us in their appeals to the government to intervene, and when it appeared the government wasn’t going to make any headway in deterring the US, decided it was most expedient to throw those same people under the bus rather than expend any more energy (or any money) on what to them seemed a futile approach. Now they’re trying their damnedest to inoculate themselves from us. Well, there’s a saying; “the path of least resistance is twice as long”. I know for a fact that Jim Jatras approached the CBA and offered suggestions as to how to effectively fight this in the US and they weren’t interested in making the effort. I want to make them eat their fake concern for us.
Lynne you are the perfect spokesperson for the problem the Conservatives have created for Canadian citizens. How can they say this is about catching tax cheats who are millionaires and billionaires when they have a middle class Grandma standing before them saying I’m here representing 1 million Canadians just like me? They probably intended to attack you but when they saw how bad the optics would look they backed off a bit.
By the way, I thought your hair looked fantastic on video. They say you should always go BIG on the hair on TV.
You looked even more sympathetic on video than I was expecting. A good looking, well dressed, physically fit, well spoken Canadian Grandma with just the right amount of feistiness (oh and perfect TV hair!).
You see Lynne, I told you your hair looked great! HEHE!
Great job, Lynne! You’re the Pasionaria of the anti-FATCA movement!
Yikes! Big error in my quote above from Canadian Cop.
What I said was “Why do our most heinous criminals have more Charter rights than I do….” Could one of the administrators fix that.
I will stop worrying about my messy hair. Why as women do we never grow too old to stop thinking about our hair?
Fixed it. Great quote, BTW.
Oops. I spoke too soon. Keddy is back to calling us “American citizens” and pointing out “Americans have always had a tax liability due to their citizenship.”
He’s also pointing out “Americans always had tax liability due to their citizenship.”
He wants to know why people are talking about American persons. He says either you’re an American citizen or you’re not.
Ummm Gerald. Read FATCA. Read the IGA. Read CBA and banks’ websites.
WHY are the Cons so purposely OBTUSE? and WHY do the Banksters keep on insisting that they would be subject to withholding, when they now know they WON’T?
@GwEvil Because they are all Cons.
*GNARRRR* (rips hair out!)
Akshally- my favourite comment was the retort to “congress has spoken” and then “I want to hear the PARLIAMENT HAS SPOKEN.” That was brill.
I liked Cockfield a lot too. He seemed very calm and clear.
But in the end, I don’t see a win here yet. Its an uphill battle still.
Sigh….
@Polly: “Never explain, never retract, never apologize. Just get the thing done and let them howl.” (Nellie McClung)
Because Nellie and other women never gave up, we have the vote today. We need to use our power as voters to defeat FATCA.
Great job, Blaze!! 😀
Many thanks, Blaze! You make a lot more sense than the politicians. We are behind you all the way and couldn’t ask for a better display of guts in Ottawa. It is appalling how our elected officials are so lazy in reviewing such a horrific bill. I sense that most of them don’t know what FACTA is really about. Our voice is getting louder thanks to you. Hats off!
I was finally able to view the entire finance meeting after it was put on YT today, thank you David as I too am on a Mac and could not view it at the other website.
This after viewing last night Frontline’s “The United States of Secrets” which was the perfect lead in to what is wrong with FATCA.
Lynne, you did a briliant job as did Mr. Cockfield and Allision Christains. So reasonably pointing out the many and difficult issues that FATCA causes for Canada and Canadians.
I thought the cons came off looking like they had egg on their faces. Some didn’t “get” the problems with FATCA at all and just kept repeating the problems it would cause bankers. Bankers and their ilk only cared for their own issues. The much bigger issues are how does this sit with Canadian law and any Canadian could see that is the problem. I loved Allisons suggestions that amendments would still allow the banks to be compliant while defining those reportable as those temporarily in Canada.
Professor Cockfiled is so concise and well versed on this issue as is Allison It too came away wondering why this cannot be pulled from the omnibus bill and a panel put in place to figure out how to make this comply with Canadian laws before it goes into full force. As Allison said “there is time.”
Lynne’s examples of who is impacted and in what ways was an excellent way to show up the cons hand as to what they are doing and to whom! We are not tax evaders, these Canadians are law abiding innocent citizens being treated differently than all other citizens. The U.S. is demanding Canada enforce a U.S. law on Candian soil and here is who that harms and here is why that matters. After these submissions those repeating the same old tired arguments for FATCA came off looking sheepish indeed.
Finally, I know where my vote is going and it is NOT going to the cons!! They could have pointed up many of the things said in this meeting very forcefully to the U.S. and stood their ground. Instead they went with little understanding of how to fight back and get a fair deal for Canada and pretty much caved. Those in this meeting who kept mentioning Americans in Canada subject to American law are missing the point entirely and it shows.
Just finished watching the full two hours when I should be asleep……..
My predictions are usually wrong but these guys have a gift horse and that is pulling the bill out and debating it on its own.
Taking six more months will cause no harm to Canada, none.
Parliament does need to speak!!!
Ann,
So lazy and so contemptuous as to hide the FATCA IGA implementation into an omnibus bill.
I’ve got to wonder, are our brains wired so much differently than those we listen to? It is true they are on the start of what was for us a long learning curve and we had some incentive to really learn how this all would apply to ourselves and our families. Talking to many of them is the same as explaining this to a US family member or a Canadian friend. They just don’t completely get it and something clicks off as what we are explaining just doesn’t apply to them. I remember someone explaining it as “Poor bastards — glad it isn’t me” which is about as much empathy as many will give US Persons outside the USA.