He said he believes pressure needs to come from the U.S. to get the Canadian government to respond.
“This has to be fixed at a very high level,” Fontaine said. “Right now, companies are effectively forced to deal with the bureaucrats to get treaty benefits to effectively apply. It slows everything to a crawl.”
Sinclair said her “best guess” as to why the CRA seems to have changed its waiver approval process is that it is considering a new test to determine whether employees are exempt under the treaty.
The CRA’s Brideau told Bloomberg BNA on Nov. 27 that the agency “is not currently working on developing such a test.”
Category Archives: Issues regarding US persons abroad
Excellent new FATCA article in The New American
A well-researched article by Alex Newman today in The New American:
New U.S. Tax Regime is “Devastating,” Experts Say
Mr. Newman quotes from many familiar sources, including Andrew Quinlan, ACA, Rand Paul and James Jatras. He also interviewed Roger Conklin, who again provides excellent historic context by linking today’s FATCA campaign with the Tax Reform Act of 1976. That earlier disastrous initiative forced thousands of US expats to return to the homeland, ceding fragile foreign markets to overseas competitors and ushering-in America’s monumental, decades-long trade deficit, which persists to this day. To say that cause and effect is not well understood in Washington is a major understatement.
A crying shame that such a good article comes from a publication which includes The John Birch Society at the top of its list of Affiliates and Friends. That is where we part ways.
IRS insider explains why the United States has never enforced the Reed Amendment’s banishment provision, and he thinks its funny
What follows is a commentary on Virginia La Torre Jeker’s interview of ex-IRS Willard (Bill) Yates, recently retired from the Office of Associate Chief Counsel (International), If You Go, You Can’t Come Back. The Reed/Schumer Follies-Past And Proposed Anti-Expat Legislation: Interview With Bill Yates, Former IRS Attorney (International). Yates explains why US has never enforced the exile provision of the Reed Amendment.
US residents avoid tax using trusts located in “Tax Haven USA” while #Americansabroad evade tax through #TFSA
This post appeared on the RenounceUScitizenship blog.
US Homelanders use SD Dynasty trusts http://t.co/ukdt9Z1IOf but #Americansabroad punished for #TFSA Foreign Trusts http://t.co/yLO6bF9rbM
— U.S. Citizen Abroad (@USCitizenAbroad) December 28, 2013
Do as I say! Not as I do!
It’s official. As we end 2013 and begin 2014 it’s clear that the administration of Barack Obama has distinguished itself as becoming the most hypocritical joke in the world. For those seeking additional insight on this point, I recommend “Sangeeta Richard is proof of failed American reciprocity“. Although this article is written in the context of the recent U.S. arrest of an Indian diplomat in New York, the implications spread far and wide.
The fallout over the Indian consular officer, Devyani Khobragade, whom the US Marshals humiliated through strip and cavity searching her despite her immunity (we learn now that it is full UN immunity!), has much greater interest for the Isaac Brock Society than perhaps we realize. It demonstrates the US’s stance towards other nations as being one of, “Do as I say, not as I do.” I.e., the US has become monstrous bully and hypocrite. When citing diplomatic protocols in his defense of accused murderer Raymond Allen Davis (see video of Obama’s plea), President Obama emphasized the concept of reciprocity. Yet now his administration violates the very principles that he iterated in that press conference by treating Devyani Khobragade with disrespect and by indicting her for Form Crime.
Sangeeta Richard is proof of failed American reciprocity
See also: United States diplomacy requires a generous spritzing of PooPourri
The fallout over the Indian consular officer, Devyani Khobragade, whom the US Marshals humiliated through strip and cavity searching her despite her immunity (we learn now that it is full UN immunity!), has much greater interest for the Isaac Brock Society than perhaps we realize. It demonstrates the US’s stance towards other nations as being one of, “Do as I say, not as I do.” I.e., the US has become monstrous bully and hypocrite. When citing diplomatic protocols in his defense of accused murderer Raymond Allen Davis (see video of Obama’s plea), President Obama emphasized the concept of reciprocity. Yet now his administration violates the very principles that he iterated in that press conference by treating Devyani Khobragade with disrespect and by indicting her for Form Crime.
The fundamental issue in this diplomatic controversy is one of jurisdiction. The Indian government claims jurisdiction over the relationship between nanny Sangeeta Richard and her employer Devyani Khobragade. Indeed, Ms. Richard came to the United States under the Vienna Convention on Consular Relations (1963), which gives foreign consulates the right to import their own private staff, defined as,
“member of the private staff” means a person who is employed exclusively in the private service of a member of the consular post; …
Merry Christmas from the ACLU: The NSA is coming to town
Santa Clause arrested on Christmas Eve (from the archives)
The Isaac Brock Society broke the news of Santa’s arrest on Christmas Eve, 2011.
See also: Nicolas Santa still in federal custody (May 12, 2012). Isaac Brock will provide a follow up and press release from Santa presently.
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U.S. Federal agents arrested Santa Claus earlier today at the North Pole. Special Christmas Edition (Merry Christmas to all and to all a good night!)
The United States Department of Fish and Wildlife has arrested Santa Claus, an elusive figure with many aliases (e.g., St. Nicholas). On the morning of 24 December, 150 heavily armed Fish and Wildlife special agents raided Claus’ North Pole compound, seized several tons of exotic woods forbidden by the Lacey Act, arrested Santa Claus and a female accomplice identified only as Mrs. Claus, and liberated thousands of diminutive slave labourers known only as “Elves”. Claus has been charged with multiple counts of money laundering, illegal exportation of currency, illegally importing into the United States toys made of contraband–rare woods, ivory and other banned substances. He has also been charged with violations of slave labor and child labor laws, hundreds of patent and trademark violations, and illegally entering and exiting the United States. Indeed, Fish and Wildlife agents also seized an unidentified aircraft called a “sleigh” which had numerous secret compartments holding the contraband. Fish and Wildlife agents charged Mr. Claus with animal cruelty with regard to the caribou that he used to launch this “sleigh”. Continue reading
A case study in FATCA capitulation
As previously reported here, the Caymanian Compass recently conducted an online poll which asked the question: Should Cayman agree to the US’s tax-collection “FATCA” program? Nearly 58% of respondents declared “No”.
Responding to such a clear rejection of FATCA, Gonzales Jalles of Cayman Finance subsequently published an article which neatly sums-up the conflicting feelings within lucid members of the legal and finance communities worldwide – and just how little it takes to soothe their tortured souls. Mr. Jalles begins his tale thusly:
Almost 58% of voters in a recent poll suggested Cayman should reject FATCA. Don’t get me wrong, my stomach says the same, but I’m going to try to explain why we cannot.
***
If the Cayman Islands Government and the banks wanted to escape FATCA, they would need to stop using the US dollar all together, and we would need to create a new currency system where our currency is not pegged to the dollar. Given the UK and Europe are going the same way, we could not peg it to those currencies either. Therefore, we would need a floating currency, which will automatically mean the complete disappearance of our international financial industry that represents over 50% of our GDP and government revenue.
***
If you still think the Cayman Islands Government and local institutions should have said “no”, I give up. You should move to Cuba, probably the only country in the world that might remain completely out of it.
Lucky Cuba. Driving Detroit museum-pieces forever seems like a small price to pay for avoiding FATCA.
Jalles then goes on to deliver the most misleading and pointless FATCA analogy I’ve heard this year:
Let’s say the police catch you speeding and driving under the influence. You are going to pay a fine and be riding a bike for a while. Do you accept it or do you refuse to pay the fine and keep driving, making things worse for yourself?
Apparently refusing to bow to FATCA is the equivalent of both speeding AND driving under the influence – who knew?
Finally, Mr. Jalles concludes with this passionate confession:
Maybe a few lawyers and accountants like FATCA as they will see more business, but most of us don’t. It’s like a hurricane heading straight at us — ignoring it is not an option, we need to accept it and get ready.
In other words, what’s left of my soul says this is bad, but not bad enough to try to fight it so might as well make some money out of it like everyone else and forget about all that collateral damage stuff. Those people are screwed anyway so why even bother?
And that is today’s lesson in how FATCA capitulation works – think locally, act globally.
Expect numerous bravura repeat performances in Canada any day now as the equally tortured souls at Finance and the CBA peddle their toxic IGA to Mansbridge while crocodile tears flow for the cameras.
United States diplomacy requires a generous spritzing of PooPourri
See also: Sangeeta Richard is proof of failed American reciprocity
In the uproar concerning of the US mistreatment of their Lady Diplomat, Devyani Khobragade, the Indian government has pointed out that the United States saw things quite differently just two years ago when the tables were turned.
In 2011, CIA operative Raymond Allen Davis killed two robbers in Lahore, Pakistan, using an illegal weapon. His defense was that one of them had drawn his weapon on him in order to rob him. While the Pakistanis charged him with murder and wanted him to stand trial, the United States took the position that he was a consular employee and therefore he enjoyed diplomatic immunity. Barack Obama himself said that Davis should be returned on the grounds of reciprocity (see video of Obama’s very interesting plea). The US claimed that Davis was a “technial advisor for the American Consulate in Lahore”. Yet Pakistani lawyer, Mirza Shahzad Akbarm, argued that Pakistan had the right to hold Davis, as he was attached only to a Consulate:
FATCA Handouts Available for Printing
I have been meaning to post these here for people who would rather download them themselves and have them printed locally rather than request me to mail them out. These are a bit different in design than the ones I had litho printed, to accommodate the digital printing that would be required.
Please respect the work of the authors and designers and do not make any changes to the wording or the layout.
Feel free to print the documents, or to save them to a USB drive and have them printed at a professional printing place like Office Depot or Kinkos.
(Note that the “Not Myths” document is intended to be a double-sided folded brochure, so the cover is on the right hand side of page 1.)
The need to get this information out to the Canadian public couldn’t be more urgent! So please try to blanket as many coffee shops, libraries, book stores and public light poles as possible. Another suggestion (something I have done and will continue to do) is to go door to door in my own neighbourhood and put them in peoples’ mailboxes.
Thanks,
GwEvil (Gwen’s new handle)