I just received the following email in response to my thank you to Mr. Ted Hsu, Liberal MP for asking Question 121 in the Canadian Parliament on October 25, 2013: Question 121 re FATCA, October 25, 2013:
Thank you for your email regarding FATCA. We are awaiting an answer to Mr. Hsu’s Order Paper question, which the government must provide within 45 days. I have passed your message on to Mr. Hsu, who has asked me to respond on his behalf.
The FATCA Question — this needs to be answered by the Conservative Government of Canada and aired in the media before any IGA is signed. Your turn Mr. Harper, Mr. Flaherty, Mr. Shoom.
Thanks to Tim for this — and especially thanks to MP Ted Hsu.
(I will have a hand-out of the Q-121 at the mini-demonstration in conjunction with the October 31, November 1, November 2 Conservative Convention in Calgary.)
ADDITION, October 29: I’m adding to this post (for use in forwarding to government representatives, media, etc.) the COMBINED Q-121 and Q-127 in PDF format in more a readable form (questions asked in the Canadian Parliament on October 25, 2013 by MP Ted Hsu and October 28, 2013 by MP Scott Brison, respectively). Canadian Parliament FATCA Questions 121 and 127 – Oct 25,28 20133
Questions
Q-1212 — October 25, 2013 — Mr. Hsu (Kingston and the Islands) — With regard to the implementation of the Foreign Account Tax Compliance Act (FATCA):
(a) what steps has Canada undertaken to complete an Inter-Governmental Agreement (IGA) with the United States;
(b) with what type of legal instrument will the government enact a FATCA implementation agreement;
bubblebustin has asked me to post Julie Kessler’s recent article which appeared briefly on her blog and immediately picked up and published by The Los Angeles Daily Journal. Several from Brock approached her to see if it could be available as a resource here.
For her sensible, informative contribution Julie Kessler is nominated for the Isaac Brock Hall of Fame.
Here is part of the email received by those who helped make this article now available:
Thank you all for your emails and your praise of my recent article, which is much appreciated. One of my main objectives in writing, especially in articles having to do with the law, is to try and humanize it so that others may reflect on its collateral cost and effect.
Following is a link to this previously referenced article on FATCA and its unexpected collateral damage, written by attorney and author Julie L. Kessler, which appeared in the October 18, 2013 edition of The Los Angeles Daily Journal, the largest west coast publication providing legal news of interest and other legal information: The expats’ dilemma–article published in the L.A. Daily Journal The expats’ dilemma–article published in the L.A. Daily Journal
SUNDAY, NOVEMBER 3, CANMORE DEMONSTRATION CANCELLED — I just got word from OutragedCanadian:
I highly recommend that you don’t try driving to Canmore tomorrow morning. Roads were not good this evening, and it’s still snowing like crazy on the highway. Very slick and not good vision.
IRSCompliantForever said Any possibility of a few “no to FATCA” signs outside the Oct 31- Nov 2 Conservative Convention in Calgary?
Also, does anyone know of any delegate who might be willing to ask an anti-FATCA question or try to obtain support at the convention for an anti-FATCA policy? There will be sessions on taxation, constitution, and policies. Going to Calgary for the Tory Convention — Know Anyone Who Is?
The Conservative Convention takes place at the BMO Centre on the Stampede Grounds, private property, so we cannot get up close and personal with delegates.
(I will have FATCA Facts and Q-121 hand-outs — and more will be in my car which will be parked as close to where we’ll be. And now, in fact, I have tons left — I had printed too many!)
FRIDAY EVENING UPDATE:
Friday, November 1: 10:00 a.m. See summary of the day below, Comment re Friday Two-Women FATCA Protest, Calgary, AB. A worthwhile day for two, at the end, frozen-through gals with a message.
Saturday, November 2: As there is no one who able to help out tomorrow, I am not going out — there is a heavy snowfall warning for Calgary. If road conditions are reasonable on Sunday morning, I’ll drive to Canmore to stand with Outraged — the Conservatives visiting Canmore will say — “There they are again — those two FATCA ladies. We’re being stalked.”
More on the merging of the terms “tax avoidance” and tax evasion.”
“…there is nothing sinister in so arranging one’s affairs as to keep taxes as low as possible. Everybody does so, rich or poor; and all do right, for nobody owes any public duty to pay more than the law demands… To demand more of mortals is mere cant.”
Learned Hand in Commissioner v. Newman, 159 F2d 848 (1947).
MORALITY and TAX (by Kim G C Moody FCA, TEP, Moodys Gartner Tax Law LLP
And to top it off, the International Bar Association has recently released a report stating that the facilitation of tax avoidance strategies could constitute a violation of international human rights law.
I don’t see anything yet posted here on Lynne and Victoria’s latest published works so I’ll take the opportunity to pass it along so it can be quoted elsewhere, From Tax-News, Global Tax News: Lynne Swanson and Victoria Ferauge and their “FATCA Reality Check”.
Thanks once again, Victoria and Lynne.
I sent this to Contact Tax-News.com ( enquiries@tax-news.com ):
I cannot find any way to add comments, but I can’t let go by my responsibility to thank you for publishing: FATCA Reality Check, contributed by Lynne Swanson and Victoria Ferauge, October 09, 2013.
This is such an important issue. There needs to be a voice for the approximately 7 million US Persons Abroad as they do not have the numbers, the organization or the money behind them that the FATCA compliance industry does, ramped up to help steamroll people who are absolutely not criminals in its quest to find US tax evaders.
None of us (most of whom are regular middle-class residents and citizens of other countries and who pay our full taxes to the countries that give us our benefits – with Residence-Based Taxation) are against the purpose of FATCA. We are appalled that the US hangs onto Citizenship-Based Taxation, their cash cow reaping reward with outrageous penalties, not actual taxes owed to the US. That the US will not change to Residence-Based Taxation as that of the rest of the world (save Eritrea and the US) tells the US immoral story of FATCA. The tax evaders the US is looking for actually reside within the borders of the US and send their untaxed funds offshore. It is not rocket science to understand this.
Thank you for publishing “FATCA Reality Check” by Lynne Swanson and Victoria Ferauge and providing their voice for US Persons Abroad, many of whom do not yet know how they will be affected; i.e. “It can’t possibly affect me; I am not a tax evader.” Education and advocacy for these people is so needed. Thank you for doing your part.
Regards,
“calgary411″
Calgary, Alberta, Canada
Steve Klaus highlights another piece in today’s New York Times DealB%k – lot’s of mention of FATCA on banks but not on US Persons. Another good one for Brockers to comment on.
New York Times: “Complying With U.S. Tax Evasion Law Is Vexing Foreign Banks”
…But behind the scenes, foreign banks and financial firms are increasingly finding that complying with the law is a major headache.
Treasury Department officials say they are moving apace in getting the world’s banks on board with the law, the Foreign Account Tax Compliance Act. They say they have reached agreements with some large countries, are working on deals with others and are refining parts of the law, which is set to take effect on June 30, 2014.
But some financial institutions, trade groups, scholars and members of Congress have raised an array of concerns, starting with the cost of creating the complex computer systems needed to track Americans’ accounts.
CNN Money — Banks lock out Americans over new tax law
Americans, take your money elsewhere!
That’s what banks around the world have been telling their U.S. customers, as they try to avoid having to comply with a new tax law due to come into force next year.
… only a small sample of banks that are refusing to do business with Americans, who now face a “banking lockout problem,” said Marylouise Serrato, executive director of American Citizens Abroad.
What we had to say being censored at ExpatForum.com led us to form the Isaac Brock Society!
They have now posted information from American Citizens Abroad. Are they waking up?
American tax officials accused of targeting expats
The complete ACA letter referred to is ACA Final Letter to Treasury-IRS, July 19, 2013.
Below is a letter received by a “US Person Abroad” from US Senator Dianne Feinstein in response to a letter urging her support for Senator Rand Paul’s bill to repeal the most burdensome provisions of FATCA.
As pointed out,
“Clearly Senator Feinstein is simply towing the Democratic Party line to support FATCA and the Administration’s enforcement actions. Quite disappointing to say the least.”
———————————————————————————
Dear _______
Thank you for contacting me to express your concerns about the impacts of the foreign tax provisions included in the “Hiring Incentives to Restore Employment (HIRE) Act” (P.L. 111-147). I appreciate the time you took to write and sincerely apologize for the delay in my response.
As you know, the HIRE Act included a number of provisions, known collectively as the “Foreign Account Tax Compliance Act (FATCA),” that were intended to combat tax evasion by Americans holding investments in offshore accounts. FATCA requires U.S. taxpayers with over $50,000 of assets in foreign accounts to report information on their tax returns that is currently included in a Foreign Bank and Financial Account Report (FBAR). FATCA also institutes a 30% withholding rate on payments to foreign financial institutions. The principal exemptions from the withholding tax apply to interest on bank deposits, portfolio interest, and capital gains.
I understand your concerns that these provisions could negatively impact global investment in the United States and encourage foreign investors to divest from U.S. securities and holdings. While I share your belief in the importance of continued global investment, I am also concerned about the serious problem of tax avoidance. The Internal Revenue Service (IRS) recently announced an agreement with the United Bank of Switzerland (UBS) to collect back taxes and penalties from thousands of UBS customers found guilty of tax evasion. The IRS estimates that the average tax collections per case to be over $200,000, with individual cases of over $20 million in back taxes and penalties. Tax evasion penalizes all honest and law-abiding citizens, and the agreement with UBS underscores the continued need to enforce tax compliance.
To date, legislation to repeal the FATCA tax provisions has not come before the Senate for a vote. However, please be assured that I have noted your strong opposition to these provisions and will be sure to keep your comments in mind should legislation come before the full Senate.
Once again, thank you for writing. If you have any additional questions or concerns, please do not hesitate to contact my Washington, D.C. office at (202) 224-3841, or visit my website at http://feinstein.senate.gov.
Best regards.
Sincerely yours,
Dianne Feinstein
United States Senator
Seems Senator Feinstein and other congresspersons will ever label all ‘US Persons Abroad’ tax evaders.
