Author Archives: Tim

Things seem to be really heating up there. More fror Haaretz.

http://www.haaretz.com/weekend/anglo-file/israeli-banks-demanding-to-see-u-s-citizens-tax-returns.premium-1.473899

The impression I get is Israeli banks are probably at this point violating Israeli law. It is interesting the different responses from country on this issue.

In a move that some tax lawyers are calling a blatant violation of customer privacy, two Israeli banks are requiring current and prospective account holders with American citizenship to furnish portions of their U.S. tax returns, Anglo File has learned. Those who refuse to do so risk having their applications denied or existing accounts frozen.

For several months, two Israeli banks – Bank Leumi and Bank Hapoalim – have required customers to sign a waiver authorizing the banks to review a series of financial disclosure forms. One such form is the Schedule B – which shows dividend and interest income, including the names of all financial institutions paying out dividend and interest income – and a supplementary form known as a Foreign Bank and Financial Accounts form, or FBAR, for Americans with at least $10,000 in foreign bank accounts.

I have been keeping an eye on Canadians for Tax Fairness for a long time as they are closely tied and connected to several pro FATCA NGO Groups in the US such as Tax Justice Network, Global Witness, Task Force for Global Transparency and Integrity etc. One of the key people in Tax Justice Network whom Canadians for Tax Fairness is associated with is one Richard Murphy of the UK. Murphy is a highly religous and militant Quaker who has called for all US Citizens outside of the US non compliant with US tax law to be sent to jail and that non compliance by overseas US Persons is a violation on their part of the fundamental laws of nature and in the Quacker religion they will all go to hell basically.

Now, who are Canadians for Tax Fairness? Well they are basically a front group bankrolled by the major unions in Canada such as PSAC, OPSEU, CAW, NUPGE, and CUPE.  (On the flip side for those who accuse me of being partisan the Frasier Institute is a front group too mostly for small and medium size oil, gas, and mining companies). On their management board are included several people we have discussed in the past such as Linda McQuaig and Neil Brooks however, I will note one of the top people is someone named Murray Dobbin who is an NDP activist who basically left the party after Mulcair’s ascension to the leadership (I wonder what type of influence they expect in Mulcair’s NDP). Overall the board of directors is a lot of prominent people in the labor movement Ken Lewenza, Erin Weir, “Smoky” Thomas etc. Now CTF has had very little to say about FATCA however I will note they have launched a new website linked to below.

http://tackletaxhavens.ca/

Again no mention of FATCA however the website was clearly developed at some expense I suspect using union member dues. Take note Brockers who are/were members of the unions financing CTF.

http://www.taxfairness.ca/

http://reichert.house.gov/press-release/rep-reichert-demands-answers-fatca-implementation-irs-commissioner

This is first time I have seen any member of Congress go public on FATCA to their constituents. Excerpts:

Rep. Reichert Demands Answers on FATCA Implementation from IRS Commissioner

“Whether or not we agree on the approach that FATCA prescribes – which now allows the IRS to enforce the disclosure of personal private information about US persons from foreign companies – it is now clear that the implementation process of FATCA involves the IRS acting with an implied license to determine a new direction for global tax policy,” wrote Reichert. “I have talked with constituents, had discussions with international companies who are looking to comply, and many who wonder how successful these new policies will be in achieving their intended consequences.”

In the letter, Reichert, a member of the House Ways and Means Committee, asks Commissioner Shulman to provide information on how the IRS is taking into consideration the potential effects on U.S. businesses and persons when negotiating IGAs, and asks the IRS to provide information on these considerations as Congress looks toward comprehensive tax reform.

I find the “I have talked with constituents” to be quite interesting clearly there are a lot of people registered to vote in Bellevue/Issaquah effected by FATCA. He also has a link to the letter he sent to Shulman CCed to Tim Geithner.

http://reichert.house.gov/sites/reichert.house.gov/files/FATCA%20LetterFINAL.pdf

Wow. No known video exists but supposedly a symposium was held at George Mason University on Monday. I am little bit stunned to see these three on stage together. I would think Harvey and Eggert would think of James Jatras as a flake(although Jatras has been around Washington for a long time in different roles). Additionally a fourth panel member attended from the German Embassy in Washington DC. I have to say while if I had known about I wasn’t going to fly down to Washington, DC to attend on the otherhand I would pay big money to see this on Pay Per View.

http://www.georgemasonjicl.org/fall-2012-symposium/

Interesting question, of course Secretary Geithner is required by the IRC to publish the list BEFORE Nov 1st however, he may very well violate the IRC once again. Of course the more interesting question is whether not if late the list is still published prior to election day. The last abnormally small list was published on July 27th within the 30 day window. Of course as we have many accounts of people recieving their CLN’s since then we should have a much better idea of the accuracy of the list to begin with.

UPDATE: An even more interesting thing has just occured. The IRS is asking for public comments regarding the burden of filing out Form 8854(The “Exit Tax” Form) as required by the Paperwork Reduction Act. According to notice ONLY 100 people per year fill out Form 8854. What?? Comments are due prior to the December 12th 2012.

https://www.federalregister.gov/articles/2012/10/11/2012-24938/proposed-collection-comment-request-for-information-collection-tools#h-7

Continue reading →

Interesting show last night on TVOntario. The two “conservative” guests made a case for Romney with some success. David Frum came close to bringing up the “tax” issue and in fact talked criticially of Obama’s corporate tax policies as to how they affected Canada. Sheila Copps did not impress me and I thought Frum did a job on her. I thought though that Frum should have pushed not the level of American investment in Canadian energy but the level of American investment in manufacturing around the GTA and Ontario (striking right at Sheila Copps’ home base of Hamilton, ON). I kind of felt Sheila Copps sounded a little like Linda McQuaig. I still haven’t watched the whole show yet but I wanted to post it.

http://www.youtube.com/watch?v=QPowKUpSxoE&list=UUu_u-P3cBFO7D-sAjxd_I-w&index=2&feature=plcp

Unfortionately, it has nothing with FATCA or non resident filing. I just thought some would to like see and hear who his is.

http://video.cnbc.com/gallery/?video=3000100085

Here it is:

http://www.mondaq.com/canada/x/200116/tax+authorities/Do+Not+Get+Out+Of+IRSs+Tax+Amnesty+Programs+Without+Knowing+The+Facts

Canada: Do Not Get Out Of IRS’s Tax Amnesty Programs Without Knowing The Facts

OR

Direct Link: Roy Berg’s Entire ” Do not get out of IRS’s tax amnesty programs without knowing the facts”

A couple of initial comments I have:

1. My understanding is once you enter OVDI Criminal penalties are off the table opt out or no opt out. Can someone clarify this further?

2. Roy makes a point that himself and others have made before which are that the new super minnow “program” is rather narrowily defined AND as currently exists does not allow for people currently in the OVDI program to enter the new minnow program. (Roy makes a point in the article is this “might” change “someday” in the future).

3. As discussed previously the new minnow “program” really doesn’t solve that many problems despite the fact it has been under development for almost eight months.

4. Roy’s article pours cold water to some degree over the claims of some that you can enter OVDI and opt-out with relative ease.

And there is appears to be some activity with the US. As shown at the links below Brian Ernewein who is the General Director of the Tax Policy Branch at Finance Canada traveled to the US twice over the summer once in June and once in August.

http://www.fin.gc.ca/expenses-frais/reports-rapports-eng.asp?eventID=5262&empID=209&year=2012&q=3&empType=4&r=t

http://www.fin.gc.ca/expenses-frais/reports-rapports-eng.asp?eventID=5332&empID=209&year=2012&q=3&empType=4&r=t

The first meeting was with generic US Government officials(which I take to include both Treasury and IRS and possibly FINCEN) and the second was with US Treasury Staff. About a week after Ernewein’s June meeting the new expat super minnow program was announced. I don’t know whether or nor this was a coincidence. Ernewein also June went to a big OECD conference in Paris as did one of the Assistant Commissioner’s at CRA. I will try to find a picture or video of Ernewein so you can put a picture to the name. I will note while he is high up he is not at the level of Deputy Minister or Assistant Deputy Minister which are filled by Michael Horgan and Louise Levonian respectively. Links below:

http://www.fin.gc.ca/comment/adm-2-eng.asp

http://www.fin.gc.ca/comment/dm-eng.asp

My personal opinion is truly serious negotiations need to involve either Levonian or Michael Horgan. By definition Brian Ernewein I doubt met anyone higher than Manal Corwin, Emily McMahon, Michael Plowgian etc.

One thing that continually shocks me is just how many people are effected by the US’ Citizenship Based Taxation of all political stripes Doug Ford, David Alward, Elizabeth May, former Toronto Mayor David Miller, and now the children of long time and prominent Quebec Seperatist leader and founder of the Bloc Quebecois Lucien Bouchard. Here is wikipedia:

Bouchard separated from his second wife^[8][9], Audrey Best (1960–2011), a Côte d’Azur-born California-reared airline stewardess, who later became a lawyer, whom he met on an international flight.^[10] She was the daughter of James Best, a U.S. Navy officer, and his French wife, Marie-Josée Massay.

Bouchard is the father of two sons with Best, Alexandre and Simon, who hold dual Canadian-United States citizenship. Best held dual United States-France citizenship. She died on January 25, 2011, aged 50, from breast cancer.

I am curious what Bouchard thinks about current Bloc Quebecois leader Danielle Paille strong support of FATCA to root out “tax cheats” and other “scum.”

http://en.wikipedia.org/wiki/Lucien_Bouchard

http://en.wikipedia.org/wiki/Daniel_Paill%C3%A9

Other Canadians can probably describe to our non Canadian readers who Lucien Bouchard was. Sometimes something called Meech Lake is mentioned here all I will say is Bouchard was an a key player in it.