Category Archives: Issues regarding US persons abroad

As sent to one of NDP MP Charalie Angus’ constituents, “northernstar”:

In NDP Letter to Acting Privacy Commissioner, March 24, 2014, MPs Charlie Angus and Murray Rankin ask Acting Privacy Commissioner of Canada, Chantal Bernier, if the IGA negotiated and signed with the US adequately respect the privacy rights of Canadian-US dual citizens. They also ask what modifications to the Canadian Privacy Act are required to better protect the privacy rights of Canadians affected by aggressive FATCA reporting requirements.

Press Release, March 25, 2014: CANADIANS DESERVE ANSWERS ON FATCA

Angus says the problem facing Canadians of American origin is that the Privacy Act is woefully out of date especially when it comes to sharing cross-border information.

“There are serious concerns that Canadians privacy rights are not going to be respected by the negotiations over FACTA.”

Angus says he doesn’t have faith in the Conservative government’s negotiations on the FACTA file.

“The Conservative government says that private information will be handled by CRA and covered by the Privacy Act, but, several audits by the Privacy Commissioner have pointed out consistent deficiencies in CRA’s handling of Canadians private information, and several reports by the Privacy Commissioner have argued that the Privacy Act is in need of urgent reform.”

Thanks for your persistence in communications with you MP, northernstar. Your NDP MP response and action compared to that of my Conservative MP, is outstanding. He is to be congratulated.

Whitehouse.gov wants to hear OUR OPINIONS on data collection (how FATCA data collection applies should be heard too!)

Don’t know when this ends, but:

On January 17, President Obama spoke at the Justice Department about changes in the technology that we use for national security purposes, and what these technologies mean for our privacy broadly. He called on the administration to conduct a 90-day review of big data and privacy: how these areas affect the way we live, and the way we work — and how data is being used by universities, the private sector, and the government.

This is a complicated issue that affects every American — and we want to hear your feedback. Learn more about this review, and if you like, share your thoughts.

How do you go about renouncing your citizenship, Mr. Cruz?

A post made from George’s comment on the promise of Canadian-born U.S. Senator Ted Cruz to renounce his birth country’s citizenship:

Last summer Senator Ted Cruz learned he was Canadian and made a pledge that he was going to shed his “clinging Canadian Citizenship.”

Months later he remains Canadian, but why?

“AUSTIN, Texas — Canada-born U.S. Sen. Ted Cruz has yet to renounce his birth country’s citizenship as promised — but a spokeswoman said Saturday the tea party darling plans to have that finished soon.

Catherine Frazier, a spokeswoman for the junior senator from Texas, said lawyers are preparing the necessary paperwork.”

http://www.politico.com/story/2014/01/ted-cruz-canadian-citizenship-101747.html#ixzz2wuHpTHwK

Remember that Senator Ted Cruz is a Harvard educated lawyer;

“After graduating from Princeton, Cruz attended Harvard Law School, graduating magna cum laude in 1995 with a Juris Doctor.”

http://en.wikipedia.org/wiki/Ted_Cruz”>http://en.wikipedia.org/wiki/Ted_Cruz

Wow, it must be pretty difficult to renounce Canadian Citizenship. So what exactly do you need to do to shed that clinging Canadian Citizenship? After all, a Harvard educated US lawyer graduating magna cum laude needs other lawyers “prepare the necessary paperwork.”

Well, first stop is Government of Canada website;

http://www.cic.gc.ca/english/citizenship/renounce-how.asp

You fill out this four page form that asks nothing about social ties or connections;

http://www.cic.gc.ca/english/pdf/kits/citizen/CIT0302E.pdf

Folks, you are probably thinking there will be at least one interview and that you will need to face the Flag of Canada one last time. Not at all, you put it in the post and mail it to;

Citizenship and Immigration Canada
Case Processing Centre—Sydney
Renunciation
P.O. Box 10000
Sydney, Nova Scotia B1P 7C1

But you are now thinking, this simple service must have large fees?

One hundred dollars Canadian, payable online or by cheque.

How long does this all take, after all its less than one hundred dollars?

“Eighty percent of applications, four months.”

http://www.cic.gc.ca/english/information/times/canada/cit-renunciation.asp

OK, maybe Canada is unique in the world. What about your cousins across the pond who want to get rid of clinging British Citizenship?

The procedure is all online here;

https://www.gov.uk/renounce-british-nationality/apply

Amazing, you fill out this form with no questions of social ties but only two pages;

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/257089/form_rn.pdf

Whats the penalty if you make a mistake?

“I understand that I may be liable for prosecution resulting in a penalty of up to 3 months imprisonment or a fine not exceeding £5,000 or both if I knowingly or recklessly make a false declaration.”

Then hold your breath, you simply put it in the post!!

Cost in the United Kingdom? £187 payable by credit card or cheque.

It looks like the United States has managed to impose the Expatriation Act of 1868 on the rest of the world except itself.

http://en.wikipedia.org/wiki/Expatriation_Act_of_1868

While we are fighting for residence based taxation maybe what we need from the USA is simple enforcement of the Expatriation Act of 1868 on its own shores. Maybe Senator Cruz could be an ally on this if someone could write him.

I am sure many Brockers would renounce or document their relinquishment if it was simple, low cost, efficient and without fear. How can they expect all of us who are not magna cum laude Harvard Law School graduates to navigate the US waters?

But remember, Congress is on record that a CLN is not required;

“There is no obligation for an individual to obtain a CLN.”

http://www.gpo.gov/fdsys/pkg/GPO-CPRT-JCS-2-03/pdf/GPO-CPRT-JCS-2-03-7-2.pdf

CRA Draft Guidance for Financial Institutions March 06 2014

Consultation Draft – for limited distribution

March 6, 2014

DRAFT

Guidance on Enhanced Financial Account Information Reporting – Part XVIII of the Income Tax Act

Application
This guidance is released in draft to financial industry associations for comment in the context of a targeted consultation and is not for distribution to the broader public. Final guidance will be published on the website of the Canada Revenue Agency (CRA) subsequent to this consultation.

Legislative changes are required to implement the “Agreement between the Government of the United States of America and the Government of Canada to Improve International Tax Compliance through Enhanced Exchange of Information under the Convention between the United States of America and Canada with Respect to Taxes on Income and on Capital”, signed on February 5, 2014. On that day, the Department of Finance also published legislative proposals for comment and the guidance being offered is dependent on legislation being approved by Parliament in its proposed form. Industry associations are asked to provide feedback on this draft guidance by April 4, 2014 to CA-LPD.AC-DPL@cra-arc.gc.ca.

Again, those affected are out of the loop in discussion / consultation.

Call 1-888-416-8333, state what you’d like to discuss and give your name and phone number — YOU MAY BE CALLED BACK TO BE ON-AIR!

http://www.cbc.ca/checkup/contact/ to suggest this discussion should be continued.

In an article at Bangkok Post. Andrew Wood writes “the arrival of FATCA has given rise to some myths”, and:

All institutions worldwide will be required to report any US citizen’s account with a value exceeding US$200,000 (6.47 million baht) for non-resident expats. That means that if you have a bank account, the details could be sent to the US Internal Revenue Service (IRS). This may seem significant, although if Americans worldwide were acting as they should, it would be insignificant and even unnecessary.

The entire article can be read here: http://www.bangkokpost.com/news/investigation/401244/is-fatca-just-for-fat-cats-us-expats-beware

Any thoughts?

MasterCard and Visa block Russian bank customers

http://www.bbc.com/news/business-26678145

http://in.reuters.com/article/2014/03/21/idINL6N0MI43420140321

Along with the many donations we received for the Canadian Charter Challenge Fund, people sent comments, notes and letters. The sender of the letter in this post specifically requested that it be posted on Brock. Since most of us consider Maple Sandbox our sister site, I will also post it there to make sure no one is missed as I am certain this is in keeping with the intention of the sender.
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