Zerohedge offers US expats a new strategy for filing:
Just remember, the US courts have decided on the basis of the Required Records Doctrine that you can’t plead the 5th Amendment with regard to the FBAR. Of course, FATCA obliterates your 4th Amendment and Canadian Charter Rights as well. Could this be hypocrisy?
Germany Just Kicked Out The CIA’s Berlin Station Chief
Now she should kick out the US consulates in Germany, just as Canada is about to expel the Eritrean consulate. Why? For the same reason: the US collection of extra-territorial against alleged US citizens in other countries. The USA is a bad neighbor and a bad ally and has proven that with the imposition of FATCA on every nation in the world–with warlike sanctions as the consequence of not yielding to the demands FATCA.
Last Wednesday, the IRS released the latest version of its database of GIINs for Foreign Financial Institutions, updated to 24 June. It contains 87,993 entries, up by only about ten thousand from last month. This minor increase doesn’t exactly look like a vote of confidence by the financial sector, especially when compared to estimates of hundreds of thousands of entities that might fall under FATCA’s definition of FFIs.
Furthermore, poorer countries are falling behind (not that the U.S. cares about the collateral damage it’s causing them or anyone else). Some back-of-the-envelope calculations (jump to table) suggest that, below a certain threshold of both total bank size and per-depositor funds, some banks simply don’t have the resources to comply with FATCA — and so, unsurprisingly, only a small proportion of institutions in low-income countries have signed FFI agreements. In Malawi, for example, it looks like only a quarter of the banks with SWIFT codes are in the FFI list.
In fact, about a dozen countries still have no FFIs registered at all. Ironically, one of them is Eritrea, the U.S.’ sole fellow believer in the ideology of imposing universal, unending taxation on emigrants.
Only one week after ushering-in FATCA on Canada Day, Canada’s government is warning the Eritrean consulate to stop harassing Eritrean-Canadians or risk closure of its consulate. Foreign Affairs Minister John Baird made the announcement today in Ottawa (be sure to watch the video as well):
Foreign Affairs Minister John Baird says he has sent a message to the Eritrean consulate to stop collecting a “diaspora tax” from Eritrean-Canadians here or he will order the African nation’s consulate closed.
In response to a question from a reporter in Toronto, Baird said the practice of requiring Eritrean-Canadians to pay a tax at the consulate is “unacceptable.”
“We share the deep concern that Eritrean-Canadians, and others, have for the work that has gone on at the consulate. We’ve repeatedly sent out strong signals that is unacceptable, it’s wrong and will not be tolerated,” Baird said.
“I gave instructions to my deputy minister several days ago to very clearly and unequivocally deliver a strong message that this activity must cease and desist, and if it doesn’t we will close the consulate,” Baird said.
Baird said the messages were sent in “recent days” but did not specify when a shutdown of the consulate might occur.
This is just the most recent action Baird has taken against Eritrean officials in Canada over the practice of requiring expatriates to pay what the UN has condemned as a worldwide “diaspora tax” on its nationals, valued at two per cent of their income. Last year, Baird expelled consul general Semere Ghebremariam O. Micael.
Eritreans here have complained that if they don’t pay the tax, their families back home will suffer consequences.
Fair enough to say that this is certainly one of the most egregiously hypocritical moves the Conservative government has ever made – and there have been far too many to count over the years. I would love to hear Mr. Baird explain to Canadians how it is acceptable for the United States to impose its infinitely more invasive extraterritorial tax laws in Canada but Eritrea’s paltry amateur-hour 2% shakedown warrants impending closure of its consulate? Could it be that Mr. Baird is in fact preparing a subsequent announcement that he will be ordering the immediate closure of the US Embassy as well? Should we give him the benefit of the doubt?
Unfortunately, it does not appear that commenting is possible with this article. No doubt this story will soon be reported in other outlets so we should all be ready to dig-in.
UPDATE: Just to be clear, in light of recent comments, whatever the relative differences in scope, scale or sophistication between the Eritrean and U.S. versions of citizenship-based taxation; both are repugnant, immoral and indefensible practices. Both countries should hang their heads in shame for even pretending that CBT can ever be justified. The diasporas of both countries should find plenty of common ground here, despite the taunting and ignorance we both have to put up with from so many of our “homelander” cousins.
Just came back from watching Transformers: Age of Extinction, in which Hong Kong is decimated in some kind of incomprehensible battle amongst resident-aliens, non-resident aliens and rogue agents of the US government. Silly summer escapist fare, right? Then again:
http://fortune.com/2014/07/07/taxes-offshore-dodge/
This guy sure is a piece of work. Big time financial reporter at Fortune Magazine.
Inverters don’t hesitate to take advantage of the great things that make America America: our deep financial markets, our democracy and rule of law, our military might, our intellectual and physical infrastructure, our national research programs, all the terrific places our country offers for employees and their families to live. But inverters do hesitate–totally–when it’s time to ante up their fair share of financial support of our system.
Inverting a company, which is done in the name of “shareholder value”–a euphemism for a higher stock price–is way more offensive to me than even the most disgusting (albeit not illegal) tax games that companies like Apple AAPL -0.64% and GE GE -1.42% play to siphon earnings out of the U.S. At least those companies remain American. It may be for technical reasons that I won’t bore you with–but I don’t care. What matters is the result. Apple and GE remain American. Inverters are deserters.
Even though I understand inversion intellectually, I have trouble dealing with it emotionally. Maybe it’s because of my background: I’m the grandson of immigrants, and I’m profoundly grateful that this country took my family in. Watching companies walk out just to cut their taxes turns my stomach.
I picked this up over the weekend and am not sure what to make out of it.
If this gets traction with the “Homelanders” then I guess RBT for individuals will have a very hard time.
Because after all …..
This is a Moodys Gartner analysis of how the new Streamlined Program may present problems for Canadian snowbirds. Timely advice given the new cross-border shared day count (which should be in effect but I understand delayed).
This blog is the first in a planned two-part series that analyzes the changes to the IRS voluntary disclosure programs, and is limited to analyzing the amended streamlined program. Part two of this blog will analyze the amended OVDP program and the procedures for delinquent FBAR or information return submissions.
…
ConclusionIn summary, the recently amended IRS voluntary disclosure programs are positive for most taxpayers. Yet, significant uncertainty remains, particularly for Canadian snowbirds, which forces them to use the new 2014 OVDP if they wish to voluntarily disclose and, thus, provides a disincentive for them to disclose.
Cross post from MapleSanbox.ca: Angry Against America in London, ON, Canada
Thanks, Lynne for hosting and for Native American for speaking up on how FATCA affects his family and others, much more than monetarily!
Our Fourth of July Bash of FATCA and USA in London Ontario caught the attention of the local CTV station.They learned about the bash by one of my tweets and a link to Maple Sandbox.
It is fitting that the first public release and reading of the Maple Brock Sovereignty Alliance Declaration of Independence happened in a London named by United Empire Loyalists for the London that was home to the King who caused the Revolutionary War for very similar reasons.
We were the lead story on the 6:00 news and will likely be on the 11:00 tonight.
Here is Angry Against America;
Reporter Sean Irvine captured the story well. What would normally be a 90 second story was expanded to over three minutes. Sean reported on our plans to launch legal action and stressed we need $$$ first.
He also profiled our Declaration of Independence.
The following post appeared on the RenounceUSCitizenship blog. It discusses an issue which, if true, makes it impossible for Canadian citizens resident in Canada, who are also U.S. citizens to retain U.S. citizenship.
I intend to do a good bit of research on this topic (and I urge those of you with a background in this area) to provide comments. It is clear that U.S. citizenship-based taxation is a form of evil, the Exit Tax and FATCA are on a par with the most vile in history.
Furthermore, it is clear that the U.S. is using the taxation of “Americans abroad” to attack the “tax base” of other countries.
The claim/assumption that the U.S. has the “sovereign right” to tax its citizens in any way that it chooses is the same as the claim that the neighbor next door has the right to rape your wife. Of course that may be exactly what those Harper backbenchers actually believe.
Analysis suggests that Cdn retirement accounts of those Cdn #Americansabroad always subject to double taxation http://t.co/pkv1P95Zs2
— U.S. Citizen Abroad (@USCitizenAbroad) July 6, 2014
