When: Today, Wednesday, May 7 at 1:45 pm
Where: Ottawa Centre Block
Monthly Archives: May 2014
Maple Sandbox Invited to Finance Committee on #FATCA #IGA in #C31
I just received the official invitation to appear before the Finance Committee as part of a panel. I will try to find out who the other panel members will be. I am also trying to determine if I am able to participate via video or if I need to be in Ottawa in person.
Dear Ms. Swanson,
The House of Commons Standing Committee on Finance would like to invite the Maple Sandbox Blog to appear before the Committee, on May 13, 2014, from 5:00 to 6:30 p.m. (Ottawa time) in relation to its study of Part 5 of Bill C-31 entitled An Act to implement certain provisions of the budget tabled in Parliament on February 11, 2014 and other measures.
Your participation, as part of a panel, consists of an opening statement of up to five minutes, followed by rounds of questions from the members of the Committee. You are invited to review the attached document entitled Guidelines for Witnesses prior to your appearance before the Committee. You could, if you choose to do so, submit a 5-page brief to the Committee. It will be translated as soon as possible, distributed to the members and published on the Finance Committee Website.
Please confirm your presence by responding to this email, by May 6 at noon. Upon confirmation, we will provide you with further details regarding your appearance.
Here is the link to Bill C-31
Cross posted from Maple Sandbox
Related (not from Maple Sandbox)
Additionally, John Richardson will testify before the House of Commons Standing Committee on Finance, on May 14, 2014, from 3:30 to 5:00 p.m. (Ottawa time) in relation to its study of Part 5 of Bill C-31 entitled An Act to implement certain provisions of the budget tabled in Parliament on February 11, 2014 and other measures.
More on Republican Overseas Legal Challenge to FATCA
This article in the Washington Times (a conservative newspaper) found by JustMe provides some background information on the Republican Overseas Legal Challenge to FATCA effort.
The tweet that was sent out by Michael DeSombre (“Republicans Overseas will be launching legal challenge to FATCA”) did not mention that funds need to be raised for the U.S. legal challenge. I expect that the Republicans will be successful in raising the monies. My understanding is that there will be a separate organization related to Republicans Overseas raising these funds – similar to our own Canadian “ADCS/ADSC”.
Irrespective of whether you like Republicans, or worry about their motives, the world will better off if either Republicans Overseas or ADCS/ADSC is successful in killing the bad FATCA law.
Jim Bopp, the mean bulldog lawyer who would lead the charge mentions here some (but not necessarily all) of the U.S. laws that might be contradicted by FATCA:
Mr. Bopp told The Times that he plans to attack the act on three legal grounds: that it violates the Senate’s sole possession of foreign treaty power, the Eighth Amendment’s ban on cruel or unusual punishment and the 14th Amendment’s personal privacy guarantee.
Some research convinced Mr. Bopp that the act violates the treaty powers that the Constitution grants members of the U.S. Senate. The U.S. government has forged agreements with foreign governments to have their banks reveal all financial matters about their American customers or face huge penalties.
These country-to-country agreements are in effect treaties but ones that no U.S. department or agency bothered to seek the U.S. Senate’s advice on or approval for, he plans to argue.
Finding senators to serve as plaintiffs in a drive to get the Supreme Court to acknowledge the act’s unconstitutionality is task No. 1 for Mr. Bopp and the board of Republicans Overseas.
Mr. Bopp, as general counsel to Republicans Overseas, presented to its board two other constitutional objections: violation of the Eighth Amendment’s prohibition against unusual punishment in the form of gargantuan monetary penalties and violation of the 14th Amendment’s ban on unreasonable search and seizure of the financial assets of Americans abroad.
Republicans Overseas now wants a litigation vs. legislative approach:
“Seeking legal rather than legislative remedy on behalf of Americans living abroad before the scheduled July 1 full implementation of the law is the only available course for now,” said Solomon Yue, the Republicans Overseas chief operating officer and an Oregon RNC member.
The Republican Overseas position differs from that of Republican Senator McCain and Democrat Levin:
Mr. McCain and Mr. Levin see it differently. They not only want to sustain the law, but they also want to strengthen it.
In a joint report by their Senate permanent subcommittee on investigations, the two lawmakers signed on to a call for “the U.S. Treasury and the IRS [to] close gaping loopholes in FATCA that have no statutory basis.”
@George says:
“Can’t you see the pincer movement? The Charter Challenge in the North and the Republican Overseas in the South.”
Is the IGA about protecting Canadian Banks “regular” operations or is it about protecting their casino/derivatives business?
There was interesting comment by Finance Dept official Brian Ernewein at the very end of last Thursday hearing. At the very end he seemed to indicate that the FATCA 30% withholding would NOT have a significant impact on “regular” or “cash” market operations of Canadian banks but WOULD have significant impacts on Canadian banks cross border “Casino” Over the Counter Derivatives business. This is a rather interesting thing to say as Over the Counter Derivatives were largely viewed as causing the last financial financial crisis and I wonder what exactly is the Canadian public policy benefit to allow chartered banks to engage in OTC Derivatives trading with clients resident in the US/outside of Canada.
Any thoughts?
Get FATCA Out of Budget Bill, NDP Urges
With the concerns of constituents filling up their inboxes and voicemail, on Monday the NDP repeated their demand that the Conservatives remove a recently-signed tax agreement with the United States from the omnibus budget bill.
Read more: http://www.ipolitics.ca/2014/05/05/get-fatca-out-of-the-budget-bill-ndp-urges/
AP Writer Stephen Ohlemacher calls FATCA “an economic weapon”
We’ve been saying that the United States has threatened economic sanctions against all the countries and banks in the world. The Press now officially agrees.
IRS – The US Economic Weapon to Be Unleashed on Russian Banks
and
US to unleash IRS on Russian banks
The new law means that Russian banks that buy U.S. securities after July 1 will forfeit 30 percent of the interest and dividend payments. The withholding applies to stocks and bonds, including U.S. Treasuries. Some previously owned securities would be exempt from the withholding, but in general, previously owned stocks would not.
There is of course a simple solution: Don’t invest in the United States. I’ve been saying this for three years now.
Brockers comment at Forbes: even the Canadian Challenge is discussed…
Robert Woods at Forbes, May 3rd: Record Numbers Renounce U.S. Citizenship—And Many Aren’t Counted
Related: Time for #Americansabroad forced to renounce citizenship to pursue legal remedies in US courts
The Canada Challenge is discussed:
· Pastbeyond60
Can you envision the possible fallout to the US if the constitutional challenge being launched in Canada has a positive outcome. It is a global world now, there are other places to invest. Yes, the US has a massive economy and everyone wants to invest there. But what if these foreign governments collectively wake up, maybe have the courage to follow Canada in the event of a win. (The US must remember Canada has water, abundant natural resources and electricity) Maybe China will be the first to say “no thanks” and others follow. The moral arc of the universe bends at the elbow of justice (MLK), FATCA-IGAs and CBT are simply immoral.
Called-out comment
· Author, Robert W. Wood, Contributor
I agree that watching the litigation in Canada (has it been filed yet?) will be quite interesting. I agree that if it comes out against FATCA, the ramifications could be large. We’ll see.
Called-out comment
Republicans Overseas Will Be Launching Legal Challenge to FATCA
Republicans Overseas will be launching legal challenge to FATCA.
— Michael DeSombre (@MichaelDeSombre) May 2, 2014
MORE: Toronto, Friday – May 2nd, Forum / Debate on CBT (Citizenship-Based Taxation) vs. RBT (Residence-Based Taxation)
The American Citizens Abroad Global Foundation has launched its educational program with a forum/debate on the merits of Citizenship-based taxation vs. Residence-based taxation.
This is a full day event, sponsored and organized by the ACA (American Citizens Abroad), that will be held at the University of Toronto on May 2nd. Registration and Information
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‘This is the first public debate — worldwide — devoted to this important topic.’