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I know some of you have already done so.
Category Archives: Issues regarding US persons abroad
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?
Betray?
those who choose to become tax exiles betray the countries that enabled their success
FATCA and FBAR Reporting by Individuals: Enforcement Considerations from a Canadian Perspective, by Andrew Bonham
I came across this and am now reading. I am posting the “Conclusions” of “FATCA and FBAR Reporting by Individuals: Enforcement Considerations from a Canadian Perspective” by Andrew Bonham in the link below in case others are interested and haven’t yet come across this.
Canadian Tax Journal, Vol. 60, no. 2, 2012
CONCLUSIONSDespite the increasing trend toward judicial comity, the revenue rule and the penal/public-law rule are still the law of the land. With respect to the enforcement of FBAR fines and penalties, since the BSA is not a taxing statute, the revenue rule would not apply, and ultimately any application or action brought by the United States for FBAR enforcement in a Canadian court would be barred by operation of the penal rule. A similar action brought for enforcement of FATCA claims would be barred by both rules.
This leaves the matter of the impact of the assistance-in-collection provisions of the Canada-US tax treaty. Again, since the BSA is not a taxing statute, FBAR collection claims would not fall under the provisions of the treaty. The issue of FATCA individual reporting claims is more problematic. Continue reading
Canada Budget Submissions are UP
Check them there are a lot. I don’t really know who or how many people made FATCA related ones.
U.S. Senate complains about Europe’s extraterritorial “taxes”
A brief interruption from ongoing reports about hypocritical Canadian politicians for this (un)important update about hypocritical American politicians. Via CNBC, we learn that some Congresscritter has been left spluttering by a European Union “carbon tax” being imposed on U.S. airlines through its Emissions Trading Scheme:
Republican Senator John Thune, a sponsor of the measure, said it sent a “strong message” to the EU that it cannot impose taxes on the United States.
“The Senate’s action today will help ensure that U.S. air carriers and passengers will not be paying down European debt through this illegal tax and can instead be investing in creating jobs and stimulating our own economy,” Thune said in a statement.
Back in 2005, John Thune (R-SD) voted in favour of the United States increasing taxes on the EU and the rest of the world with TIPRA and its Foreign Earned Income Exclusion “stacking provision”, resulting in Canadians and Europeans paying down American debt through illegal taxes instead of investing in creating jobs and stimulating the economy.
US Treasury now negotiating with at least 40 countries for FATCA tax information-sharing pacts
From Sept 13 Reuters article:
In February, in the face of industry complaints, the U.S. Treasury Department said some countries could comply by collecting required financial data from their home-country institutions and forwarding it to the United States.
Initially, Treasury said that France, Germany, Italy, Spain and the United Kingdom would be allowed to take this “intergovernmental approach.” Japan and Switzerland were later added to that list under a different model.
The UK on Friday became the first country to finalize a tax information-sharing pact with the United States under FATCA.
The U.S.-UK agreement, pending approval by Parliament, spares UK banks, funds and other financial companies from reporting client information directly to the United States.
Treasury is now negotiating with at least 40 countries for FATCA tax information-sharing pacts, tax lawyers said.
A Treasury FATCA negotiating team is scheduled to meet with foreign financial businesses on Thursday in Paris and on September 26 in Singapore on tax information exchanges.
Bilateral agreements to implement FATCA are “a workaround,” said Mark Matthews, a lawyer at Caplin & Drysdale and former head of the criminal investigation division at the Internal Revenue Service.
Source:
http://www.reuters.com/article/2012/09/18/us-usa-tax-facta-idUSBRE88H15X20120918
Note: Caplin & Drysdale, mentioned above, is home to Scott D. Michel and H. David Rosenbloom, who have written important articles on FATCA. Michel has also testified before the Canadian House of Commons Finance Committee on tax related issues.
Did Doug Ford file his FBAR for his Canadian Assets when he ran the Chicago/US branch of Deco Labels
Given the Ford Family history of ignoring legal requirement and not doing proper paperwork I tend to have my doubts. It would be interesting for the Toronto Star to take a look. Perhaps Linda McQuiag should take it upon herself to start making some phone calls to City Hall. In fact if you look at Doug Ford’s Linkedin page it still says he lives in Chicago and for those who don’t know the Ford Brothers are both multi millionaires. Remember too even if Doug Ford filed a treaty election with the US to still be considered tax resident in Canada he was still required to file an FBAR on any Canadian accounts if he stayed in the US more than 180 days.