UPDATE SEPTEMBER 19, 2015: SEE ALSO DISCLAIMER AND LITIGATION UPDATES.
[This post, which began in May and having over 1000 revisions and 2000 comments, is being retired from service and updates. It lived through the success of reaching a total of $500,000 in donations from our kind, dear supporters who had little money to give, the hope and disappointment with the summary trial decision, and the certainty that we are now finally moving on to the Charter trial.]
CANADIAN CHARTER TRIAL UPDATE:
— We have instructed the Arvay team to prepare for the “Constitutional-Charter” trial. This means that our focus now, as it was in the beginning of our lawsuit, is on the Charter trial.
Unless there is a new expense in the future that we have not anticipated, the monies from your donations will be sufficient to take us through the “constitutional-charter” trial in Federal Court. However, to pay other legal bills we will need additional donations from our supporters, and a request for donations will appear on another post soon.
OUR LITIGATION HISTORY:
One year ago, on August 11, 2014, Litigator Joseph Arvay filed a FATCA IGA lawsuit in Canada Federal Court on behalf of Plaintiffs Ginny and Gwen, the Alliance for the Defence of Canadian Sovereignty (en français), and all peoples.
Because of a Government delay we initiated a “summary trial”, using a portion of the arguments, which offered the possibility of preventing private banking information from being turned over to the IRS before September 30, 2015. See Alliance’s Claims, our Alliance blog, and AUGUST 4-5 SUMMARY TRIAL FILINGS in LITIGATION UPDATES.
Looks like Harper is in more hot water with the UN on another human rights violation. He will likely ignore it as usual….http://www.cbc.ca/news/aboriginal/un-human-rights-panel-hears-aboriginal-plight-is-among-canada-s-top-issues-1.3140622
A little more proof Harper could care less about the UN and human rights violations…..http://www.thestar.com/news/canada/2013/09/19/canada_rejects_un_rights_review_of_violence_against_aboriginal_women.html
@Embee – Your analysis is excellent as always. Others in other situations may also fear their own Governments. There are no limits when people are exposed.
@Polly – How would those finger prints and pictures give any idea that the “refugee” is a Terrorist unless the data is shared with / run against some sort of database in their home countries ?
@US foreign person
It certainly is a mixed bag of nuts – however – beggars can’t be choosers. These refugees are going to live off the german/french/english etc tax dollar for a long time. They are going to be fed and clothed and educated and hopefully integrated. That isn’t working so well in France with the muslims who have been moving there for decades. But anyway- methinks maybe a little gratitude would also be appropriate. I just read something about why in hell the arab countries all around that area and much closer to the refugee camps don`t take refugees in – the RICH arab countries: Abu Dhabi, Dubai, Saudi Arabia etc etc. It is amazing how the world demands humanity from Europe when their own countries would be a lot closer. But in addition – they want to come to christian countries because their own religious laws are too oppressive! Go figure- then they want to convert the infidels. I find everything that is happening right now very ominous. Also Russia getting involved in the war zone and maybe France too. This could easily turn into WW3.
Thank you NativeCanadian for bringing attention to this report of abuse of the Rights of Native Women in particular. This is not FATCA but shows how dislocated is Harper’s mindset.
@ nervousinvestor
Glad to see you got a good reply to J. Jones posted before the Financial Post closed the comment section. It was a nice antidote to john’s anecdote too: “We complete her U.S tax form in all of 10 minutes and off it goes in the mail.” I hate those types who claim it’s all easy-peasy for them so they don’t get what all the fuss is about … or worse, so everyone else must be rich, sleezy tax evaders.
http://business.financialpost.com/personal-finance/taxes/u-s-citizens-living-in-canada-have-a-lot-of-extra-tax-filing-hoops-to-jump-through
@EmBee. The comments closed just as I was about to one final one. Ah well. J Jones is so uninformed yet feels so strong in his position.
There are nasty creatures prowling the earth. Creatures that do not see laws or soverign boundaries as impediments to their desires.Take a read of
http://jamaica-gleaner.com/article/business/20150908/federal-appeals-court-set-hear-microsoft-cloud-case
In case my comment does not get through moderation it is reproduced below:
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There are some fundamental slights of hand in this article.
1 In the Irish Supreme Court case …. “an Irish registered company by one of its branches situated in a foreign country” There is a difference between a “branch” and a separate legal entity – a registered company.
2 “It said Irish taxation authorities also can force Irish banks to produce records of accounts held by customers wherever the information is located.” That is understandable … the Account in question is an Irish account at an Irish Bank in Ireland …. wherever the data is warehoused is irrelevant.
3 “decision upholding the US government’s right to search a consumer email account that Microsoft stores in Dublin, Ireland” – Where is the customer resident – with which actual company did the customer open the account – if a non US resident person opened an account with an Irish registered company then the US Government should go pound sand or go through the process of seeking access in the country where the customer resides and the country where the registered company exits.
4. “But Manhattan federal prosecutors said in court filings that “powerful government interests” override potential negative effects on Microsoft’s business or any other company seeking to profit on the storage of information overseas.” What a disgusting statement displaying an absolutely sick state of mind outside of a time of War.
“Republicans Overseas (RO) advises that the Ohio Federal Judge will rule on the RO injunction request by September 30. The injunction is aimed at ending FATCA reporting, FBAR reporting to the “Financial Crimes Enforcement Network”, and the FATCA IGAs between the United States and Canada, Czech Republic, Israel, and Switzerland (where the six plaintiffs reside).”
Why only the IGAs with these countries? If there are constitutional issues or they state that the IGAs are not valid because they haven’t been ratified by congress, wouldn’t it be the case with the other countries with which the US already has a tax treaty? I don’t really get why they would only block those. It doesn’t really make sense. They might as well only block the data being transferred for the plaintiffs only. Doesn’t seem quite fair.
@noone – It does seem odd – the technicalities of the Law are sometimes beyond my understanding of what is reasonable.
I heard today that there is a doctrine in some US courts that they have Universal Jurisdiction over any matter worldwide that touches on a US Citizen. I heard this in the context of the DOJ demand to get access to emails in servers located in Ireland – a matter that certainly does not amount to the degree of seriousness as the matters described below.
In trying to find out more about this claimed jurisdiction I found:
https://www.globalpolicy.org/international-justice/universal-jurisdiction-6-31.html
A few extracts from that site are:
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The doctrine of universal jurisdiction allows national courts to try cases of the gravest crimes against humanity, even if these crimes are not committed in the national territory and even if they are committed by government leaders of other states.
In recent years, however, several state governments have limited the use of universal jurisdiction by their domestic courts, after pressure from countries like the United States, Israel and China. The creation of the International Criminal Court in 2002 has also reduced the need for domestic courts to apply the doctrine.
and
America’s Refusal to Extradite Bolivia’s Ex-President to Face Genocide Charges (September 9, 2012)
The former Bolivian president Gonzalo Sánchez de Lozada was formally charged by Bolivian courts for ordering his forces to suppress protests against his government’s policy on energy and globalization. His military forces reportedly killed 67 individuals and injured over 400 of the nation’s indigenous Aymara community, and the outrage which led to the “Gas Wars”, drove the president into exile in the US. Although a US-Bolivia extradition treaty currently exists, the US refused to accept this particular extradition request on the grounds that “a civilian leader cannot be tried for crimes committed by the military.” The politics behind this “justification” is transparent owing to Sánchez de Lozada’s pro-American ideology. It is unfortunate that political trivialities are keeping justice from being served to the families of those who died in the Gas Wars, but it is however somewhat unsurprising of the American system of international justice. (Guardian)
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It seems to me that the US Courts are once again overreaching yet at the same time trying to limit the reach of the Courts of other countries. So what else is new ?
“A Mr. Jonathan Jackel, a partner with Burt, Staples & Maner LLP in Washington, told Bloomberg BNA that the U.S. plaintiffs — and presumably also Canadian plaintiffs Ginny and Gwen — should stop their complaining because the IGA solves our problems.
Mr. Jackel says that “because the IGAs virtually eliminate the 30 percent withholding penalty that otherwise could be imposed under FATCA, ‘it seems to address the plaintiffs’ concerns rather than imposing additional burdens.” [on the RO FB site]”
Are you sure that you have spelt Mr Jackel’s name correctly ?
@nervousinvestor
“Are you sure that you have spelt Mr Jackel’s name correctly ?”
I was thinking the exact same thing, lol. September 30th – The Day of the Jackel?
@Deckard1138
True thing !
A cross post from another thread:
Bad stuff is happening.
Read http://jamaica-gleaner.com/article/business/20150911/barclays-says-jamaicans-too-risky-closes-accounts
“Barclays Plc confirmed Thursday that the UK bank has removed Jamaicans from its client rolls, saying that a new initiative to close out accounts for those having Jamaican addresses was in line with its push to reduce risk and shore up core business.”
My comment presently in moderation is:
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People get ready for the train is coming !
This is gross Discrimination based on matters including National Origin and Residence. This is a part of the whole FATCA / CRS nonsense that is in process of being imposed on the world and contravening our Human Rights. PLEASE read the links at isaacbrocksociety.ca to legal actions being taken in Canada, the US and the UN to fight these things. The more people become aware of these matters the greater the resistance can be to such abuse.
Imagine a situation where let’s say a Canadian born person goes to the bank to open an account and the bank requires they certify that they aren’t a U.S. Person. If they refuse for whatever reason, the IRS requires they be turned away from opening an account. The IRS now has the final say on who opens bank accounts in Canada. Now imagine a Canadian born person with two U.S. parents goes to open an account in Canada and is asked if he is a U.S. Person. Knowing that in Canada one can be considered a Canadian when born abroad, they respond with the honest answer “not sure”. At this point the bank will likely respond by requiring the potential customer find out whether they are a U.S. citizen. Of course the Canadian who’s never spent a day of his life as an American will find out he’s in fact a U.S. citizen and subject to all the tax and reporting requirements as someone who lives in the U.S. – and more.
FATCA is going to railroad people into establishing themselves as U.S. citizens, people who the U.S. government in the past was perfectly happy to ignore. FATCA is evil, pure evil. I hope Justice Martineau sees just how insidious this law really is.
@Bubblebustin
FATCA is going to create a totally new world order. It is going to change so many many things – business, immigration and emigration, marriage with joint accounts – I am sure you can name some others in addition. I heard of some european son who went for training to California and couldn’t get a bank account when he got back home! He wasn’t even a US person!!!!
And I fear it will give ALL the power for worldwide banking to America. But maybe it is there already….
@Polly, in the 1930s some families learned quickly not to discuss Jewish heritage even if it was remote.
In the 21st Century some families are learning not to discuss USness, no matter how small or seemingly trivial.
I have had and continue to have this talk with my children. They must never discuss the families past in the USA.
This suspense is excruciating!!!! Though I feel real good about our prospects in Canada compared to the USA lawsuit.
Trying to figure out the mechanics and implications of a win in Canada.
I think that the only option is to rule that the Treaty is not compatible with the IGA so the whole IGA is stopped including for homelanders that are using Canada as a tax haven (LOL LOL).
The CRA will be barred from being a go between. So where does that leave the banks? They will already have their data files. They are already GIIN registered.
If the banks transmit the information direct they will be in violation of Canada privacy laws. Are the Canadian banks willing to break Canadian privacy laws knowingly and wantonly?
The government will appeal but the appeal will not allow the IGA to move forward pending appeal.
The government will launch a full public offensive that Canada is going to lose 30% in penalties and blame ADCS.
Will the Governments Appeal and the Charter Challenge occur at the same time? I sure hope so!!
I could envision the Government winning the appeal but then simultaneously loosing the Charter Challenge solely because the Treaty and the IGA is so technical and the Government will have had time to hire top notch legal talent this time around including help from the US Govt lawyers.
Now I am thinking the USA could seek to amend the tax treaties so they are all IGA compatible. But can/would Obama do that without Senate approval?
From the ADCS site, I fully understand and agree with Arvey that the IGA needs to be read through the Treaty and not the other way around. The Treaty was not designed to work with an IGA, its like someone fixing their electrical fusebox with a copper penny in a makeshift repair!!
Thoughts???
@George
I have no idea- but I could imagine that if Canada bans FATCA as unconstitutional then many other countries would join on the bandwagon- because after all- they only complied with a gun to their head.
I just don`t know what the OECD has planned in the way of transparency. One would think that the threat of information exchange would be enough to stop tax evaders. No need for all the hoopla to fill (America`s) empty coffers.
Rand Paul has been blocking all tax treaty updates, apparently:
http://www.reuters.com/article/2015/04/13/us-usa-japan-tax-idUSKBN0N427O20150413
In Canada we’ve had to go to court to delay/prevent info being sent to the US by the end of September 2015 as per the FATCA IGA terms. What was the big hurry Harper Cons? Allison Christians and Arthur Cockfield advised that Canada not rush to sign on to FATCA. The Cons refused to listen.
And yet, much smaller countries like the Philippines and Croatia have delayed, will not be rushing to send their citizens and residents info to the IRS and US Treasury until into 2016.
And their financial world hasn’t collapsed.
The Philippines has been allowed to delay FATCA reporting until the “second quarter of 2016?
See;
“The mandatory reporting of financial information on US nationals by local financial institutions, as required under the new treaty on Foreign Account Tax Compliance Act (Fatca) between the Philippines and the US, has been moved to the second quarter of 2016.
Internal Revenue Commissioner Kim Jacinto-Henares has advised Philippine financial institutions that the required reporting of financial information on US nationals will not take place on September 30, as originally intended.
The deferment was because the intergovernmental agreement (Iga) on Fatca has yet to be ratified by the Senate as a treaty………….”
http://www.businessmirror.com.ph/fatca-terms-moved-forward-6-mos-to-q2-2016/
and apparently Croatia too according to Tax Notes (for those with fulltext access);
‘Croatia to Delay Implementation of FATCA Agreement’
FATCA Expert and Worldwide Tax Daily and Tax Notes Today: News Stories
“The Croatian tax authority announced September 10 that it would not implement reporting provisions of the intergovernmental agreement it signed with the United States by the September 30 deadline..”
Interesting.
@Badger
“The deferment was because the intergovernmental agreement (Iga) on Fatca has yet to be ratified by the Senate as a treaty.
“However, Philippine financial institutions must take the necessary steps to prepare full implementation of the terms of the Iga and the concomitant submission of information on reportable accounts beginning the second quarter of 2016,” according to Henares’s advisory statement.”
The Philippine government must feel pretty confident the U.S. senate will ratify FATCA as a treaty by then, otherwise why commit to any time frame at all?
I guess the Canadian government couldn’t say yes to their bank masters quick enough.
@bubblebustin, I wasn’t certain whether the reference to ratification by the Senate was referring to ratification by the US Senate or the Philippine Senate ( https://en.wikipedia.org/wiki/Government_of_the_Philippines ).
But in any case, the Philippines aren’t transferring any data until the second quarter of 2016, even if the data reported covers 2015, whereas the CRA, (now known as the Canadian branch plant arm of the US Treasury since Canada Day 2014) can’t surrender Canadian data and privacy and rights fast enough. As they’ve told the court, their intention is to abuse our Canadian tax money to send our Canadian data on Canadian assets in Canadian accounts owned by Canadian residents and citizens to a foreign power – the US – and subjugate it to the US Patriot Act and US FATCA. As the latest update re the legal challenge says; “Canada Revenue Agency confirms to us and Justice Martineau (via Government counsel) that it intends to begin transferring private banking data of some Canadian citizens to U.S. IRS on September 23, 2015. “
Oh, you’re probably right, Badger, that it’s the Philippine government that must ratify it. I was hoping that they were considering the lack of reciprocity from the U.S. government as something significant…something that if Canada had any balls would be doing right now before sending ONE IOTA of our people’s data to the U.S.!
One fact remains though. ADCS could not have launched its lawsuit until that fateful day when Canada made its capitulation final by ratifying its agreement with the U.S. – regarless of FATCA’s legality in Canada.