Category Archives: Issues regarding US persons abroad

There was interesting comment by Finance Dept official Brian Ernewein at the very end of last Thursday hearing. At the very end he seemed to indicate that the FATCA 30% withholding would NOT have a significant impact on “regular” or “cash” market operations of Canadian banks but WOULD have significant impacts on Canadian banks cross border “Casino” Over the Counter Derivatives business. This is a rather interesting thing to say as Over the Counter Derivatives were largely viewed as causing the last financial financial crisis and I wonder what exactly is the Canadian public policy benefit to allow chartered banks to engage in OTC Derivatives trading with clients resident in the US/outside of Canada.

Any thoughts?

With the concerns of constituents filling up their inboxes and voicemail, on Monday the NDP repeated their demand that the Conservatives remove a recently-signed tax agreement with the United States from the omnibus budget bill.

Read more:  http://www.ipolitics.ca/2014/05/05/get-fatca-out-of-the-budget-bill-ndp-urges/

We’ve been saying that the United States has threatened economic sanctions against all the countries and banks in the world. The Press now officially agrees.

IRS – The US Economic Weapon to Be Unleashed on Russian Banks
and
US to unleash IRS on Russian banks

The new law means that Russian banks that buy U.S. securities after July 1 will forfeit 30 percent of the interest and dividend payments. The withholding applies to stocks and bonds, including U.S. Treasuries. Some previously owned securities would be exempt from the withholding, but in general, previously owned stocks would not.

Robert Woods at Forbes, May 3rd: Record Numbers Renounce U.S. Citizenship—And Many Aren’t Counted

Related: Time for #Americansabroad forced to renounce citizenship to pursue legal remedies in US courts

The Canada Challenge is discussed:

· Pastbeyond60

Can you envision the possible fallout to the US if the constitutional challenge being launched in Canada has a positive outcome. It is a global world now, there are other places to invest. Yes, the US has a massive economy and everyone wants to invest there. But what if these foreign governments collectively wake up, maybe have the courage to follow Canada in the event of a win. (The US must remember Canada has water, abundant natural resources and electricity) Maybe China will be the first to say “no thanks” and others follow. The moral arc of the universe bends at the elbow of justice (MLK), FATCA-IGAs and CBT are simply immoral.

Called-out comment

· Author, Robert W. Wood, Contributor

I agree that watching the litigation in Canada (has it been filed yet?) will be quite interesting. I agree that if it comes out against FATCA, the ramifications could be large. We’ll see.

Called-out comment

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Republicans Overseas will be launching legal challenge to FATCA.

— Michael DeSombre (@MichaelDeSombre) May 2, 2014

May 2 2014 ACA-Sponsored Toronto Forum / Debate on Citizenship-Based Taxation vs. Residence-Based Taxation (cross-post from Maple Sandbox.ca)

The American Citizens Abroad Global Foundation has launched its educational program with a forum/debate on the merits of Citizenship-based taxation vs. Residence-based taxation.

This is a full day event, sponsored and organized by the ACA (American Citizens Abroad), that will be held at the University of Toronto on May 2nd. Registration and Information

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‘This is the first public debate — worldwide — devoted to this important topic.’

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John Rafferty MP Thunder Bay Rainy River, Ottawa Leaders Ledger: Harper Government stuffing more garbage legislation – See more at: http://www.netnewsledger.com/2014/05/02/rafferty-harper-government-stuffing-more-garbage-legislation

Added, May 3rd: from Professor Allison Christians’ Tax, Society & Culture blog: Tax, Society & Culture, Allison Christians, Marco G.: “FATCA non-delay delay”

The below notice will require some very close reading by a great number of people.
-Notice 2014-33; 2014-21 IRB 1

Originally announced, AGAIN, on a Friday, when it will get lost in the weekend news.

Reuters, May 2, 2014: Foreign banks get transition period on U.S. tax evasion law

From “innocente” and George:

US Treasury and the mythical Bob Stack blinked today, “U.S. Treasury gives relief to banks for anti-tax evasion law”…

from Jim Jatras:

Interesting news today!

Treasury seems to want to have its cake and eat it too: delay FATCA yet again (since it clearly would be a mess on July1) without appearing to do so. It’s a transparent sign of weakness, stalling for time to get more unconstitutional pseudo-treaties signed. It might actually make things worse. Who knows.

from Just Me:

This is akin to declaring all the IGAs non complete as being a done deal, and so added to the count.

and reply back …

I think this is aimed more an individual FFIs being able to take more time to comply, so as to drive more countries into IGAs – which is the only way they can really enforce this. That’s the paradox: foreign governments (like Canada’s) sign IGAs because their banks are terrified of FATCA, but if they didn’t sign them, FATCA would collapse and there’d be nothing to be scared of.

There’s one born every minute . . .

As Blaze pointed out on Sandbox, and as I don’t at the moment see elsewhere here on Brock, the House of Commons Finance Committee met today from 3:30 through 5:30 today. Most of the second half of the meeting was taken up by the FATCA IGA, with questions of Finance officials (Shoom and Ernewein) mainly by the NDP, with softball lobs by Conservative members.

I’ll repeat here the comment I posted on Sandbox. I’m not going to subscribe to or respond to any replies to this; I just want to call everyone’s attention to the meeting, how to download a video clip of the entire meeting, and how important it is for Canadians affected by the IGA to watch, listen carefully, and reflect carefully.

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