12 January 2022

If clicking on a link in the comments brings you to the wrong place on the thread, click here.  (It may bring you to the page before the current one, but it’s closer).  This is a link, even though it doesn’t look like one.  You may have to scroll   Having a technical problem and working on it.

UPDATE February 13, 2016

I have finally decided on a new name for this post, which will not continue on this thread but as a new post:

A #FATCA Related Suicide

I have not been updating this post as regularly as I intended. I have two items for you to think about today. One is a comment from a psychologist; I think it is extremely important to hear from a professional, as to how this entire situation can affect the well-being of one caught up in it. The comment was made in the context of the 2 meetings that were organized to offer people a chance to talk openly without any fear of being exposed; June 15, 2013 & March 29, 2014 (which Dr. Young was scheduled for but missed due to illness). The second item is an actual obituary for “J” for whom you will now see his actual name. I have been reluctant to post it but it has to come out eventually. I would expect ALL to respect the privacy of his family in Sweden.

One last thing for today. Many have commented as to how they cannot understand (or even don’t believe this story because of this) how a father could do such a thing with two young children. I suspect those who outright disbelieve it do not actually have children. Any honest parent will admit to the difficulty of the constant sacrifice required and how sometimes it simply is too much. Parents are not saints and they suffer the same myriad of issues as anyone else. And it is common knowledge in the counselling world that people who commit suicide feel extreme guilt at being the source of a problem, so the solution, in order to protect, is to take themselves out of the equation. No one would question a parent putting themself in front of a car to protect a child (even one who wasn’t their own). On a certain level, it is exactly the same thing. Life is not neat and tidy and clear sometimes. Continue reading →

Getting Charter rights right.

Democrat Candidates have little to offer #Americansabroad there will still be #FATCA #FBAR #CBT taxes – Let Us Go! https://t.co/voSFLVhznq

— Patricia Moon (@nobledreamer16) February 4, 2016

 
Over the past few years the sheet distributed by the Obama 2008 team has been discussed here with regard to Supporting Americans Abroad (or rather, how it did not support them). Yesterday, Democrats Abroad released a set of questions and answers put to their Presidential Candidates. I thought it might be interesting to review what Mr. Obama said/did while contemplating whether there would be any improvement in the situation for expats based upon the statements of Mrs. Clinton and Mr. Sanders.
 

Mr. Obama

What He Said: Strengthen Economic Security for Americans Abroad

…he will work with Americans abroad to identify and understand problems they may face as a result of U.S. government policies.

What He Delivered: Closure of Bank Accounts; Inability to obtain/renew mortgages

What He Said: Census of Americans Abroad

What He Delivered: Nada

What He Said: Concerns of Americans Living Abroad

As president, Obama will work to establish a direct dialogue with Americans abroad.

What He Delivered: we are “Tax Cheats” “Traitors” “Don’t Pay Our Fair Share” oh, and not to forget, we must report our everyday bank accounts to FINCEN and endure considerable terror tactics used to try and get us to enter “amnesty” programs designed for criminals

What He Said: Other Governmental Services and Benefits

…..ensure that U.S. State Department staff members have proper training to assist Americans abroad in determining their various rights and responsibilities as American citizens

What He Delivered: OVDP/OVDI FATCA Form 8938 Renunciation Fee Raised 422%

 
So with those thoughts in mind, here are the questions that Democrats Abroad prepared and presented to Mrs. Clinton, Mr. Sanders and a Mr.Rocky De La Fuente.

Continue reading →

John Richardson says at http://www.citizenshipsolutions.ca/2014/06/17/john-richardson-interviews-andrew-grossman-march-1614-montreal/

“On March 16, 2014, as part of my “Solving The Problems of U.S. Citizenship” seminars,  I participated, along with Professor Allison Christians and lawyer Andrew Grossman in a “FATCA – U.S. citizenship” seminar at McGill law school. A summary of Professor Christians’s FATCA presentation is here.

After the FATCA information session, I had the privilege of interviewing Mr. Grossman. The interview focused on many aspects of U.S. citizenship. Some topics discussed ranged from the very academic to the very practical.

The interview underscores the fact that the law of U.S. citizenship is very complicated. Those who were NOT born in the United States, should not presume that they are U.S. citizens. Further inquiry to determine whether you are  a U.S. citizen is advisable.

Every person who is concerned by the “whether and what of U.S. citizenship” (or is consideringrelinquishing U.S. citizenship) will find some aspect of this interview to be of interest.

Thanks to Mr. Grossman for allowing me to interview him.”

Thanks, Lynne Swanson.  Cross-posting from MapleSandbox.ca:

reposted from Accidental Americans Public Group Facebook page by Sora Fon

This is a superb piece of work!

In 2013 Eric at Isaac Brock Society analysed available USG statistics to suggest that an increasing proportion of babies born abroad to US citizens is not being registered with a US consular office. While a few argue that citizenship is dependent upon registration (or, in the alternative and after the age of 5, application for a US passport), the better view is that the child is an American citizen at birth regardless — but that quite apart from the fact that the USG will not know of his/her existence, US case law establishes a (rebuttable) presumption of alienage in the case of a foreign birth and codified State Department practice (9 FAM 202.1-2 and 7 FAM 080) allowing the issuance of nonimmigrant visas and the admission to the US under visa waiver for a person who “has a possible claim to U.S. citizenship but is unable or unwilling to obtain documents to establish that status”.

The IRS has no standing to bring a proceeding to determine citizenship: its purview is to enforce the tax laws against those who by birth in the USA are (with very few exceptions) prima facie US citizens (under the 14th Amendment or by statute) or if born abroad have availed themselves of an attribute of US citizenship.

With the advent of #‎FATCA‬ and more stringent enforcement of ‪#‎FBAR‬, foreign trust (Form #3520), foreign company (Form #5471) and foreign collective, entity-based investment (‪#‎PFIC)‬ law, lifetime income and, for the self-employed, Self-Employment Tax (in the absence of a Totalisation Agreement) residence abroad as a US citizen is seen as untenable. But with the advent of a $2,350 renunciation fee and expatriation tax (Form 8854) especially for “covered expatriates”, observance of US law can be a practical impossibility. Taxes (through unrelieved double taxation and “payroll” taxes) and penalties can exceed 100% of income and assets. Pensions and tax-sparing savings may be impossible. Non-American spouse and offspring can be impoverished. Banking facilities and jobs may be denied although it’s unclear how generalised this problem has been.

Congress enacted these oppressive laws on purpose:
Congress Knew About Diaspora Phantom Gains Problem and Refused Fix .

It is part and parcel of the curious US notions of its own Exceptionalism and of Permanent Allegiance of those who, in its own right, the USG claims as its citizens, that even if those citizens have never set foot on American soil their primary obligation is to the USA and not any other country or society. (That Islam argues that sovereignty is reserved to Allah, and that foreign sovereigns may have other ideas can be left for discussion another day.)

There are at least 5 bilateral tax treaties containing mutual collection provisions, although these may not be applicable for persons who held the citizenship of the treaty partner at the time an unpaid tax accrued, and they may not apply to penalties:

Section 6330 Appeals Conference Memo

Only the Canadian provision is commonly invoked. Extradition for “tax crimes” rarely happens and when it does it is most often in connection with VAT “carousel fraud” and fraudulent income tax refund scams.

U.S. Efforts to Extradite Persons for Tax Offenses

Writs ne exeat republica to prevent a noncompliant taxpayer departing the United States are occasionally issued, and noncompliant citizens may be questioned on arrival in the US if their names appear on the TECS database used by immigration officers.

DHS:Privacy Impact Assessment Update for the TECS System See also Internal Revenue Manual § 5.1.18).

The worse it gets, in some respects the better it may be for those affected. Either the law will become so notoriously defied and so unenforceable abroad (though maybe not for want of trying) that (insofar as it damages the family lives of poor and working-class “accidental Americans”) human rights norms are invoked. Or penalties may be found disproportionate or their incidence intolerable by other countries: Blocking statutes, such as those enacted by several countries in response to the US Foreign Corrupt Practices Act, are possible.

Or notwithstanding that it is within the exclusive purview of each state to determined who are its nationals, other countries could refuse to give effect to US claims of “US Person” status to certain dual citizens and others resident on their territory. Resolution of cases of conflict of nationalities was more robust in the first half of the 20th Century:

Report on Nationality, Including Statelessness by Mr. Manley O. Hudson, Special Rapporteur

But that was before the Afroyim (1967) and Terrazas (1980) judgments of the US Supreme Court which seem to have assumed that possession of American citizenship is a precious commodity, not easily disposed of. For that reason the Ishikawa Kawakita (treason) and Yaser Esam Hamdi (terrorism) cases caused the USG so much grief.

So where does that leave us? Those who defy the USG are rarely going to advocate publicly for their position. It is useful, however, to take note of the raw statistics: In 2015 the State Department said “8.7 million AmCits … are overseas at any given time these days” and that “6.8 million reside overseas”. We have not seen these figures substantiated and they are probably estimates.

Passport issuance statistics are here. Citizen numbers are published from time to time in “Department of State Bureau of Consular Affairs Overseas Citizens Services”. As for tax returns filed from “other areas” than the 50 US states:

Historic Table 2 State Data Tax Year 2013 Sere the table under the map, very bottom of last column “Other”(695,000 for 2013, of which 257,000 were joint).

(This comment is a cooperative effort of my office)

watch the master cheats-lawyers (not required 2 report SARS) move $$ IRS should go after these folks https://t.co/JNswBNCyMi …

— U.S. Expat Canada (@USExpatCanada) February 1, 2016

US becoming the preferred place 4 tax evasion -airing now https://t.co/JNswBNCyMi

— U.S. Expat Canada (@USExpatCanada) February 1, 2016

60 Minutes aired a program this evening, Anonymous Inc which exposed some well-known and some less-well-known facts about “dirty money” and how easy it is to use the U.S. in laundering this money.

What interests me about this is not what they are doing nor how they are doing it. It is whether Homelanders would be able to discern how completely different this is than their perception of our “offshore” funds. While the two situations are not really similar, in the minds of those who claim we are “tax cheats” because we are “offshore” , the distinctions seem beyond their willingness to consider.

And while this notion would not be helpful for us, the behaviour of the lawyers immediately brings to mind the actions of the IRS/DOJ toward the Swiss banks. Will we see a similar move in this direction?
Continue reading →

cross-posted from ADCSovereignty blog

Photo highlights from Day 1 of the @OttawaForum. Tune in for Day 2 here: https://t.co/0CvbgvgH64 #Can2020 pic.twitter.com/PuMUfsPlEg

— Canada 2020 (@Canada2020) January 29, 2016

 
On January 28, 29/16 I attended the Canada 2020 “Building A Foreign Policy For Canada’s Future” forum. It was enormously interesting (apparently you will be able to view the sessions online – “Full Conference Video Coming Shortly”). I would recommend it.

Continue reading →

Error For those considering their US vote, @NoGo suggests this tweet on candidates as a post for Brock…

https://twitter.com/bracing/status/693567510856220672

Dear @BernieSanders Please–inform yourself of #FATCA‘s harmful effects on ALL US expats. It’s major for us.