http://www.forbes.com/sites/realspin/2014/07/17/fatca-remains-vulnerable-despite-implementation/
A hard-hitting new Forbes article by Andrew F. Quinlan. An excerpt:
FATCA Remains Vulnerable Despite Implementation
Even if by some miracle FATCA survives its current challenges, in several years time Congress will be forced to take it up again as recognition sets in that it simply is not capable of accomplishing its intended goals. For all the acrimony and international financial upheaval it has caused, FATCA is a poor excuse for a solution to tax evasion.
There’s a direct correlation between the severity of a tax code and the level of effort individuals are willing to put into avoiding or evading taxes. Attempting to address the latter while ignoring the former is a fool’s errand. It’s the fiscal equivalent of the war on drugs – a costly enforcement-minded solution in which government agencies are always two steps behind their targets. And like the drug war, FATCA will produce considerable collateral damage and invasions on innocent Americans.
Comments encouraged, including a gentle reminder that Canadians have also mounted a domestic legal challenge to FATCA and we that we welcome more such actions around the world.
Shouldn’t be “American $$$” being stuffed into a teddy bear. That just magnifies the problematic view that homelanders take of us. It should be the currency that expats use (such as the Cdn $ or British pound) that should be shown being stuffed into a teddy bear along with Uncle Sam’s arm reaching for the Teddy Bear.
@The Animal
Makes sense, but too much Photoshop work. I kind of like the new one better anyway. I was thinking it was more about creepy Uncle Sam’s fantasy of confiscating imaginary greenbacks anywhere in the world he can find them.
Good work as always @Deckard1138.
Hopefully we will see more of these articles of FATCA having the wobbles.
This is a good one – resonating quite well with issues on this site:
http://www.ibtimes.com/irs-really-driving-americans-overseas-renounce-citizenship-1628644
A new poll from finance advisory deVere Group has found that 79 percent of its expat clients are now tempted to renounced their citizenship, an increase of 11 percent since they took the same poll last year.
@JC
Thanks. There’s this one too:
http://www.benefitspro.com/2014/07/16/many-expats-weigh-giving-up-us-citizenship
Then there are the countries where the coverage of FATCA has started has started turning negative over the past month, particularly France and Pakistan. More are likely to follow, since many countries believed that FATCA would help them clamp down on organized crime and corruption at home. There are already grumbles in some countries that FATCA hasn’t achieved this yet.
FATCA will for sure be revisited by congress once “reciprocity” becomes a real issue.
Why do we not have a legal callenge by a person with standing (someone with money who has the burden of compliance) and a good lawyer. Oh I know the term Good Lawyer is an oxymoron, but I mean an efficient lawyer who will either get his pay from a wounded person or do it for the good of the Republic, pro bono.
Good article. IGA as stands for Information GiveAway.
That’s how IGAs should be viewed by non-US governments.
Aren’t there any American lawyers living in Canada? I guess they wouldn’t want the spotlight on them any more than anyone else does, especially when being a lawyer might make any reasonable cause argument less plausible. You’re a lawyer, you should have known the law – everywhere!
@Bubblebustin
The list of famous Canadians who were born in the US (gathered back in April, mostly from Wikipedia) includes several lawyers, at least one was a Vietnam draft dodger now quite an activist. You want to phone him and raise his understanding and interest in FATCA and ADCS?
I have just posted the following on the Forbes page referenced above as a response to one Christopher Eaton:
___________________________________________
Two points.
Only the US and Eritrea tax based on a document system aka Citizenship Based Taxation. EVERY other country on earth taxes based on Domicile or Residence OR has no income tax at all (Cayman, Bahamas etc). The US needs to change its CBT system to be congruent with the rest of the world.
The US is the recipient of the most “hot” money of all countries (evading everything from political tyranny, violence, persecution, taxation or even just the laws of other countries), the US generates more dirty money than anywhere else due to the ridiculous level of consumption by Americans of illegal substances, the US is the world’s biggest money launderette and hosts the world’s largest Tax Havens (South Dakota, Delaware, Nevada to name three). If the rest of the world decides to go on a money hunt guess where the target will be …… The USA, got it in one. Columbia has already started this process with new laws requiring that Colombians owning assets in the US must declare these to Columbia now and pay a tax of 25% of the value of said assets or when they are caught they will be taxed 70% of the value of these assets including homes. Ghana is in the process of creating similar laws. Every country on earth will see it as their right now to attack the assets of their diaspora in the US … can you dig this? Bad ideas ab initio are just that Bad Ideas and are to be rejected and thrown out. Repeal the madness that is FATCA now and refund the banks and countries around the world who have expended (and are continuing to expend) Billions trying to get into compliance with the crazy regulations! Reports are that ONE institution, the Bank of Nova Scotia in Toronto, had spent nearly $100 Million on Fatca preparation some time ago. The figure is doubtless larger now.
@LM
I would consider doing that. Where does this person live?