While reading through U.S. Department of State (DOS) form DS-4081 I noticed that the renouncer is required to make (or not make by ticking off a “do not choose” box) to DOS a “written explanation of my reasons for renouncing/relinquishing”.
Has any Brock reader explained in writing on DS-4801 that they renounced for “tax-related reasons”?
Point #10 of DS-4081 does make the bold statement that hopes to terrify:
“.. I understand that if my renunciation of United States nationality is determined by the United States Attorney general to be motivated by tax avoidance purposes, I will be found excludable from the United States under Immigration and Nationality Act, as amended.”
— IRS tells us however that “tax avoidance” is NOT a criminal act, yet DOS wants to punish those who renounce for tax avoidance purposes.
Canada Revenue Agency, on the other hand, grudgingly admits that tax avoidance is of course “within the letter of the law” but cautions fair-minded Canadians who all must support the CRA that “those actions contravene the object and spirit of the law“. CRA has four approaches to “combat tax avoidance”.
The Australian Government lumps tax avoidance with tax evasion and promises: “Those seeking to do the wrong thing will be left with no doubt that deliberate tax avoidance and evasion will not be tolerated.“…etc.