“Tax residence American style” AKA : Imposing “worldwide taxation” on those with @taxresidency in other countries
The issue of tax residence has gained so much attention since the “crackdown” on non-resident US Persons began in 2009. It is commonly understood that you pay taxes to the country/state/city-town that you reside in. (For an interesting comparison of differences between countries please see this incredible list compiled by the OECD). It simply does not occur to anyone that they would be required to pay taxes to a foreign government.
However, the United States claims jurisdiction due to citizenship. One does not even have to have touched foot in the U.S., according to U.S. law. Of course, due to the viciousness of the U.S. “FBAR Fundraiser” many people began to resist whether of anger or fear.
Not much has changed* , in spite of all the factors that have contributed to this debacle (and debacle it is, what could one expect when a country tries to take what is someone else’s, based on an idea of fake residence?).
For a detailed discussion concerning the determination of tax residence and related factors, please see here.
In a #FATCA and #CRS world: There's "residence", "#taxresidence" and "@taxresidency American style (where you reside in the USA even if you don't) – @1040Abroad and @Expatriationlaw: ‘Episode 2: "A Tax Residency Primer"- Tax, Residency and #TaxResidency": https://t.co/n2xjvHDhqy
— John Richardson – lawyer for "U.S. persons" abroad (@ExpatriationLaw) August 8, 2018
At the 38 minute mark, we talk about how to describe U.S. “tax residence”.