http://www.youtube.com/watch?v=ooFTvJiHzMk&list=UUPIj95W1bHT9NSpNMm2oVbQ&index=30&feature=plcp
Includes a couple of notable people such as Hale Shepard of Tax Notes Today. I am not sure what conclusions if any to draw from it.
Category Archives: Issues regarding US persons abroad
The Parable of the Prodigal Uncle
My father once left for Far Away Country and returned to Homeland empty-handed and starving. Since he had squandered his part of grandfather’s fortune on prostitutes and riotous living, he feared that the villagers of Homeland would not accept him. He was grateful however that grandfather received him back warmly, saying, “For this my son was dead, and is alive again. He was lost and is found.” But my uncle, whose name is Sam, seethed.
When I turned eighteen, my father sent me on business to Far Away Country where he still had friends who had now become his business partners. I met the daughter of one of the partners; she was fair and so we wed. I worked for my father-in-law, and we wisely saved our money. I became a citizen of Far Away Country. After many years, we had two sons and two daughters, a house with no mortgage, and investment and retirement accounts. One day, I said, “I shall return to Homeland to see my aged father and to greet the villagers.”
An example of things to come?
Canadian gets three months in jail for not serving in Israeli army
Gorelik was detained in Israel after she arrived in the country on Labour Day weekend to attend her cousin’s wedding. Gorelik, a 30-year-old with dual Canadian-Israeli citizenship, left Israel for Toronto with her family when she was 17. All Israeli citizens are required to start mandatory service in the Israeli Defense Forces at 18 unless they receive an exemption.
US tax policies delay $2bn Chinese loan
From the Financial Times
US tax policies delay $2bn Chinese loan
By Henny Sender in Hong Kong, April Dembosky in San Francisco and Anjli Raval in New York
A loan worth nearly $2bn from China Development Bank to help fund an ambitious San Francisco housing project is being delayed as a result of Chinese concerns about the effect of tax policies in the US, a person familiar with the situation said.
The measures include the controversial Foreign Accounts Tax Compliance Act (FATCA), which comes into effect in 2014 and could force foreign banks to pay a 30 per cent withholding tax on the interest income on any loans made to US entities or persons.
“They need to clarify the implications of these regulations before they approve the loan,” said the person.
European banks shut Americans out over U.S. FATCA tax rules
@CanuckDoc found this story and suggests that it should be given a separate post, as it is a mainstream story about Banks shutting out Americans Abroad.
The story was originally posted at USA Today and then picked up at ABC News. It will be interesting to watch today to see if it starts showing up elsewhere. It it ever gets discussed on Brian Williams NBC nightly news, so my 86 year old mother sees it, you will know the story finally came back to the homeland! I don’t expect to hear or see it there, however.
SwissRespect Obtains Letter from Federal Concil Authorizing Disclosure of Bank Employee Names
It seems that the letter only mentions exception to Art 271, Swiss Penal Code when it is in the best interests of the country, and does not excuse the banks from bank secrecy violations or civil lawsuits under the employment code.
Last Day to make a FATCA submission to the Australian Govt
It’s here:
I know some of you have already done so.
Rand Paul responds on FATCA
Shadow Raider made the following comment:
Rand Paul responded to my email! Clearly this was not an automatic response and he is aware of the issue. Here is his response (my emphasis in bold):
September 26, 2012
Dear Mr. —,
Thank you for taking the time to contact me regarding the Foreign Account Tax Compliance Act (FATCA). I appreciate hearing your thoughts on this issue.
During the 111th Congress, Congress passed and President Obama signed into law, the Hiring Incentives to Restore Employment (HIRE) Act of 2010 (P.L. 111-147). This legislation drastically expanded government involvement in the financial goings-on of Americans who live and work abroad. FATCA, the tax evasion provision in this bill, requires all foreign financial institutions (FFI) to provide a detailed report on American account holders to the Internal Revenue Service (IRS) beginning in 2013, or be subjected to a 30 percent withholding tax on income from U.S. assets. American account holders with more than $50,000 who fail to file a report with the IRS would also be subject to a 30 percent withholding tax. As a newly elected member of the 112th Congress, I did not participate in the debate of this law and would have voted against it if I had been.
The Lives of Others – The true significance of Bradley Birkenfeld
Cross posted from RenounceUScitizenship.
What is the relationship between a bank and a customer?
Although Bradley Birkenfeld never became famous as a banker. He was a banker.
In most cases banks do NOT owe a fiduciary relationship to their customers. The duty owed by a banker to a customer now depends on the nature of the relationship. Some people are mere customers or creditors of banks. Those who have “private banking relationships” may be entitled to a higher standard of care. There are clear cases where a bank does owe a fiduciary duty to a client. A recent article in the Ottawa Law Review suggests that the nature of the relationship will now be determined by the specific facts. When a bank is giving investment advice, the easier it is to establish a fiduciary relationship.
Apple Co-Founder Steve Wozniak to become Australian
Another article on famous entrepreneurs switching citizenship!
The Apple co-founder has resided for some time in Australia has recently stated that he is applying for citizenship and intends to remain there permanently:
The author of this article seems to think that he become the next big tech person to renounce US citizenship, which I would imagine would result in a huge media storm in about a year’s time should his name appear on a quarterly registrar. What do you think? Is he trying to get ready for FATCA?
Readers who live in Australia – How has FATCA been impacting your daily life or banking activities up to this point in time?