Author Archives: Deckard1138

http://www.ftseglobalmarkets.com/issues/issue-80-january-february-2015/aeoi-tax-reporting-doesnt-have-to-be-taxing.html

From the back alley of the Compliance Community comes this little tidbit which reinforces concerns about what all those trustworthy banks are going to do with all that shiny US Person customer data once their new FATCA and AEOI (Automatic Exchange of Information to support the OECD’s GATCA) systems get up to cruising speed:

AEOI: Tax reporting doesn’t have to be taxing

From FATCA to AEOI, who knows what the next move will be. And, with confirmation of exact reporting rules around AEOI still up in the air, there is still much uncertainty. The point is that those who continue to paper over the cracks instead of looking for a long term solution run the risk of non-compliance to local and global regulations and reputational damage. On the flip side, financial institutions that adopt flexible technology designed to cater for future unknowns, will avoid any headaches, and have capacity to explore how best to use the new AEOI/FATCA customer data. The silverlining, of course, is that once a firm’s AEOI infrastructure is in place, it provides a goldmine of customer data. Golden nuggets that could then be used for purposes other than keeping the tax authorities happy.

Alberta online bank first in Canada to shun U.S. clients amid tax rules

Some highlights from Barrie McKenna’s new Globe and Mail article:

“The information and documentation required to open and monitor an account within [Canadian Direct Financial] for a U.S citizen or resident outside of Canada is prohibitive to providing the level of service our clients expect and deserve,” explained Kirby Hill, a Canadian Western Bank vice-president and spokesman.

A number of financial institutions in Europe and elsewhere are already balking at doing business with Americans. But Canadian Direct Financial is believed to be a Canadian first.

Canadian Bankers Association spokeswoman Maura Drew-Lytle said she was unaware of any Canadian banks refusing to do business with Americans.

“It’s discrimination based on nationality,” said Kevyn Nightingale, a U.S. tax specialist at accounting firm MNP LLP in Toronto. “FATCA has put financial institutions in a conundrum.” Mr. Nightingale said the steep compliance costs simply aren’t worth the effort for some mid-sized financial institutions.

“I’m amazed this is the first one I’ve seen so far,” he said. “I would expect there would be more.”

Patricia Moon of Toronto, who renounced her U.S. citizenship more than two years ago, said the Alberta bank’s decision not to do business with Americans “demonstrates the harm” caused by Canada’s decision to share data with U.S. tax authorities.

“If all the banks started doing this, where are you going to open an account?” wondered Ms. Moon, a director of the Alliance for the Defence of Canadian Sovereignty, which is suing the Canadian government over its decision to share personal financial information with the U.S.

http://www.theglobeandmail.com/report-on-business/international-business/alberta-online-bank-first-in-canada-to-shun-us-clients-amid-tax-rules/article23186804/

Nigel Green, CEO of the deVere Group, has issued a strong statement of support for Boris Johnson, Mayor of London.  Mr. Green is well known for his opposition to FATCA and CBT and has been a consistent champion for US Persons worldwide. Green declared, via his blog:

“Boris Johnson’s noble and brave stance against this fatally flawed, imperialistic and economically dangerous law, means he is legally in the wrong, yet morally he is right.

“Whilst I wouldn’t advocate that individuals do not comply with FATCA – instead they should explore all the available options to mitigate its adverse effects – I do hope the Mayor’s apparent FATCA crusade will serve as a call to arms to other high profile personalities to publicly express their opposition to this highly-polemical new law.”

Related articles:

http://www.nigel-green.com/2014/11/29/boris-johnson-still-refuses-to-bow-down-to-fatca/

http://www.nigel-green.com/2014/11/19/u-s-citizen-and-mayor-of-london-boris-johnson-slams-fatca/

http://www.funds-europe.com/news/14732-johnson-s-anti-fatca-crusade-is-noble-says-wealth-manager

http://www.cpifinancial.net/news/post/29218/london-mayor-boris-johnson-makes-brave-stand-against-american-taxes

Excellent FATCA coverage by Siri Srinivas at The Guardian, based in London.  Siri quotes Isaac Brock Society regulars about bank account closures and renunciations.  Comments are open.

‘I was terrified we’d lose all our money’: banks tell US customers they won’t work with Americans

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Dave Popowich, host of “More Than Money”, interviews John Richardson on CHQR News Talk 770, Calgary, Alberta, September 20, 2014.

Another great discussion about FATCA, the Canadian IGA and the Charter challenge by ADCS.  John was also recently interviewed by CHQR’s Dave Taylor.

Excellent visibility for ADCS in this new article by Robert Wood in Forbes.  Comments are open.

http://www.forbes.com/sites/robertwood/2014/09/09/canadians-attack-u-s-expat-rules-decrying-accidental-americans/

The Alliance for the Defense of Canadian Sovereignty (www.adcs-adsc.ca) sounds a little like a new world militia or a trade group promoting maple syrup. Actually, it’s neither, and American legislators may soon learn that too well. The organization has lawyered up, hiring a Washington D.C. lawyer tasked with exploring legal options to reverse the practices of the United States government. Why?

Because the U.S. government is making it downright difficult for Canadians that are also ‘Accidental Americans’ from freeing themselves of the burdens of U.S. citizenship. Accidental Americans include those born in the U.S. but who left at a young age to live permanently abroad. The organization claims they have no meaningful ties to the U.S. but are stuck with a lifetime of U.S. taxation on their non-U.S. income. Ouch!

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As usual, Alex Newman provides a very well-informed and annotated update on the current state of affairs with FATCA and CBT in an article for The New American.

While he focusses on the efforts of the RNC and Republicans Overseas to repeal FATCA and CBT, Newman also underscores the need for all opponents of these destructive policies to join-together in a bi-partisan repeal effort:

GOP Votes to End Tax Regime That Is Crushing Americans Abroad

Democrats and propagandists in the establishment press initially tried to frame the Republican efforts to stop FATCA and citizenship-based taxation as a scheme to protect “the rich” and “tax evaders.” The half-baked tactic failed spectacularly, however — especially because those suffering the most are poor and middle-class Americans who cannot afford armies of lawyers and accountants. The group Democrats Abroad, stuck in a Catch-22, is now on defense, trying to walk a fine line between not alienating the millions of embattled Americans abroad while also not criticizing their party’s handiwork too vociferously. It recently accused the GOP of pandering for votes, noting that no bill to repeal FATCA has been introduced in the Republican-controlled House. The media has remained almost entirely silent on the latest GOP resolution.

Republicans, though, say the effort to ease the burdens imposed on Americans abroad and to boost the U.S. economy should not be a partisan one. “Republicans Overseas would welcome the DNC and Democrats Abroad to join us by adopting a RBT resolution, incorporating it in its national platform, building political support for a RBT legislation, and introducing a tax reform package to replace FATCA and CBT with RBT in order to end double taxation for 7.6 million overseas Americans,” Republicans Overseas said in a statement. “Doing what is right and just for expats should be bi-partisan.”

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In an article for the Vancouver Sun, Douglas Todd explores the ambiguities of life and self-identity for what he calls “Ameri-Canadians”.  I have long maintained that Canadians of American origin are Canada’s largely “invisible minority”.  Now, post-FATCA, we are being forced to reconsider not only our relationships with two different nation-states but also within our communities, our families and our very souls.  Todd covers an equally wide scope in his thought-provoking commentary:

Millions of Americans in Canada downplay links to Uncle Sam

With the Canadian government’s decision to comply in July with a Washington tax crackdown on “U.S. persons” around the world, many Ameri-Canadians are feeling rising anger, fear and even hatred toward their powerful country of origin.

That said, the self-identities of Americans in Canada have been more ambiguous than they tend to be for members of more visible immigrant groups, long before the U.S. began its notorious attempt to catch tax cheaters through the Foreign Account Tax Compliance Act, better known as FATCA. The U.S. is the only major country to tax based on citizenship, not residency.

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