Or maybe that’s just the usual politco-spin turning involuntary compliance with US extraterritorial demands into the appearance that it was voluntary, mutual and reciprocal.
“…………Jim Swander, the American CEO of Oxley Worldbridge Specialized Bank, said that this regulation was already making waves throughout the industry.
“For FBAR, it is really confusing for bankers,” he said, adding that American businesses or US citizens involved in business are typically listed as shareholders or hold joint accounts.
“The precaution that US companies are starting to take is that they are dropping all American signers on accounts because it is too much of a risk,” he said. “The other thing is that the IRS does not trust that FBARs are accurately being filed.”
He said the tax measures were making it more difficult for Americans to open offshore accounts as traditional financial hubs like Singapore have been turning away business.
“I can say that there are also banks in Cambodia that are looking at the costs of FACTA and FBAR compliance as a major burden,” he said, adding that compliant banks were simply providing data dumps of account information to US authorities.
“As for our bank, we simply will not deal with any Americans,” he said flatly.
So Phonnary, executive vice president of Acleda Bank, said that while compliance with the US tax authorities meant that the bank had to invest capital into human resources and infrastructure for data sharing, the transmission of US account details was not easy.
“The issue that we have with data exchange is that we send the information of our American account holders to the General Department of Taxation, and then they verify it and send it to the US authorities,” she said.
However, “if our reports are not checked and verified within seven days, they are immediately dismissed and we have to send it again for authorisation”, she said, adding that the coordination between the two governments was not yet smooth and deadlines were often missed.”
Does the paragraph above inspire confidence in terms of data protection?
For those following FATCA enabling legislative and political developments in Trinidad and Tobago:
‘The Tax Information Exchange Agreements Bill, 2016
An Act to repeal the Tax Information Exchange Agreements Act and
replace it with a new Tax Information Exchange Agreements Act which
would make provision for the implementation of agreements between
Trinidad and Tobago and other States providing for the exchange of
information for the purposes of taxation, to validate the sharing of
personal information held by the Board of Inland Revenue or financial
institutions and for related purposes.’
To be introduced in: House of Representatives
To be introduced on: 9 September, 2016
To be introduced by: The Hon. Colm Imbert, MP Minister of Finance http://www.ttparliament.org/documents/2408.pdf
On FATCA and Poland;
Alicja Brodzka: ‘The deadweight cost of implementation of the Foreign
Account Tax Compliance Act (FATCA)’
NAUKI O FINANSACH
FINANCIAL SCIENCES
4(21)•2014
I don’t know enough to weigh the conclusions in this article, but it provides an intriguing amount of detail – and appears to be arguing that Trinidad and Tobago are not in imminent danger of a FATCA meltdown even without the passage of legislation enabling an IGA?
; http://www.trinidadexpress.com/20161226/news/what-would-happen-if-tt-blanks-fatca
‘What would happen if T&T blanks FATCA
…and ends up like Belize’
Still T&T continues to demonstrate a higher sense of national sovereignty vis a vis the US Empire than Canada does;
“….America is, at best, a hypocrite — asking for information on their citizens without informing in return—and at worst, a bully, forcing others to do what they have no intention of doing themselves.
But eventually, even bullies have to honor their deals. If they don’t, eventually their victims will gang up on them to get their own back.
Given the pain and anguish FATCA is causing around the world, I predict that in the near future some nations will refuse to honor their FATCA IGAs on the grounds of lack of U.S. reciprocity. Some of those nations may be too big to kick out of the global financial system.
And what then? Well, the bully might just get his comeuppance. I can’t wait to see that.”
‘Can FATCA Pass the International Jurisprudence Test?’
Published on January 29, 2017
By Stephen Kangal
January 29, 2017
Stephen KangalThere was a quite visible and audible dearth in the House possessive of the requisite international relations expertise to analyze and dissect the internationally illegal imposition of US- domestic FATCA on T&T from a foreign policy/international law perspective.
“…………. What invalidates the IGA is that coercion and threats against the financial integrity of T&T are used to force T&T to sign and conclude the Agreement that the Minister of Finance referred to as having dodge several bullets from the US Treasury. The text was a unilateral US-imposed draft.
It is patently clear that the US is in fact interfering in the domestic and parliamentary affairs of T&T and giving many unilateral deadlines………..”
See:
Call for Comments on the Tax Information Exchange Agreements Bill, 2016
1 Feb 2017
The Joint Select Committee established for consideration of the Tax Information Exchange Agreements Bill, 2016 is calling for comments on the Bill.
The purpose of the Bill is to implement certain tax information exchange agreements entered into between Trinidad and Tobago and the United States of America.
The Committee is inviting members of the public to submit comments on the Bill, which includes proposed amendments and is available here. PDF Icon The report of the Joint Select Committee, which was laid in the House of Representatives on February 3, 2017 can be found here. PDF Icon
THE DEADLINE FOR SUBMISSIONS IS FRIDAY FEBRUARY 10, 2017.
Written submissions should be addressed to the Secretary to the Committee as stated below or can be forwarded via email to jscfatca@ttparliament.org.
The Secretary
Joint Select Committee on Tax Information Exchange Agreements Bill, 2016
Office of the Parliament of Trinidad and Tobago
Levels G-9, Tower D
International Waterfront Centre
1A Wrightson Road
Port-of-Spain
Quoting from the article: “accused the Government of trying to terrorise the population”
These are the people to be terroised by the T&T Government passage of the FATCA IGA: T&T citizens and residents who may have lived in T&T all their lives, who pay taxes to T&T, yet because of a parent or birth in the U.S. are considered U.S. persons.
Said again: T&T citizens and residents who may have lived in T&T all their lives will be among those terroised.
The FATCA IGA will require T&T banks to ask all new account applicants under penalty of perjury to certify that they are or are not U.S. persons. The FATCA IGA will require all banks to identify U.S. persons who may have $50K or more in a bank account (such as one just sold a house!). This is not a trivial or a free exercise of the banks which must pay for this all themselves (the U.S. will not pay).
The End Game here is in support of U.S. Citizenship Based Taxation – to tax any U.S. persons (citizens or Green Card holders) on their worldwide income — no matter where in the world they live! Even it they live in another country, are paying their fair share of taxes there, receive no U.S. government services (roads, hospitals, unemployment, etc.), and receive no U.S. protection of property in this other country. The U.S. Extraterritorial Taxation fails under accepted norms of when taxation is justified.
If the U.S. was just after U.S. residents with accounts in T&T, and will pay for the additional T&T bank compliance costs, that would be another story. The dragnet includes T&T citizens resident in T&T!
T&T like all other countries in the world support Residence Based Taxation (except the U.S.,Eritrea and maybe North Korea). Adopting this FATCA IGA will be against the T&T policy of Residence Based Taxation, and lead to government and bank discrimination and privacy violation against a subset of the T&T population.
Are all T&T citizens resident in T&T equal or will the T&T government let a foreign government force it to discriminate against a subset of T&T citizens making them 2nd class? Will T&T not speak out and defend its sovereignty?
If a T&T resident is not now in the U.S. tax system (because they lived in T&T their whole lives) it may cost them tens of thousands of dollars to become compliant, then an additional $2,350 to renounce U.S. citizenship to get out of all this.
“the US Embassy here had informed last week that “there has been no change to the US position on FATCA”. Neither has there been a change in U.S. corporate tax policy, inspite of the fact that this was a big campaign point of Donald Trump. His team is not fully in place yet. Changes will happen as the U.S. Executive is of the same party as the U.S. Senate and U.S. House.
Donald Trump has vowed to repeal many Obama Executive Orders. The FATCA IGA have their authority on Obama Executive Order. Obama did not take IGAs to the U.S. Senate for review and approval as required for all international treaties, of which the IGA are. Therefore, the FATCA IGA are unconstitutional, so says Republicans Overseas, Rand Paul, Mike Meadows, and many others.
Additionally, repeal of FATCA is in the Republican Party Platform.
There are many countries (mostly in Africa) which have not signed an IGA. There is no case of the U.S. bankrupting any country because they did not sign an IGA. Such act would be internationally condemned.
Here are some ways forward for T&T:
As the FATCA IGA represents substantial compliance costs on T&T banks, and represents violation of T&T discrimination and privacy laws, and violates T&T public policy of Residence Based Taxation, T&T shall wait to pass this legislation (your choice T&T):
1) As repeal of FATCA is in the Republican Party Platform we shall hold off approving the FATCA IGA pending U.S. approval of Republican tax reform measures expected in 2017.
2) As the U.S. Constitution requires international treaties to be submitted to the U.S. Senate for review and approval, T&T shall not pass FATCA IGA legislation until the U.S. Senate has reviewed and approved the FATCA IGA.
3) As in the FATCA IGA is a promise of reciprocation of “like for like data, T&T shall not pass such legislation, until the U.S. passes legislation requiring U.S. banks to change their new account procedures and vet through their existing account bases for T&T national accounts in the U.S. Noted such legislation has not been passed in the U.S. and that there is expected opposition from the U.S. Bankers Association to any such legislation and the regulation and costs this would impose on U.S. banks.
4) As the FATCA IGA text says that parties are not required to provide FATCA data that is in violation of public policy, T&T declares that it is not required to provide FATCA data as it would violate the T&T policy of Residence Based Taxation for its resident citizens.
Choices: I suggest 1,2, and 3 while mentioning concerns about 4.
@ JC
Popped in a short comment there but warning to others … moderation is slow at the Jamaica Observer. Having an exchange with anyone there is somewhat like the time delay one would get talking with a person on Pluto.
This is an intriguing new development from “‘he Caricom heads of government” ;
See;
Editorial
‘Lobbying against FATCA on Capitol Hill’
Sunday, February 19, 2017
………”…The Caricom heads of government, through Antigua and Barbuda Prime Minister Gaston Browne, announced that the community is considering hiring a US firm to lobby the Trump Administration and Congress on FATCA…”……
“……Interestingly, the front- runner for the lobbying contract is a firm headed by former US Attorney General Eric Holder, a democrat and black American with one immigrant parent (Barbados) who would have been part of the US apparatus for enforcement. Perhaps there is some sense in that. Who better to deal with FATCA than he who enforced it?….”……
“..This week’s Caricom Intersessional in Guyana also featured the compliance issue and threat posed to the banking system by Fatca derisking and de-banking. Rowley said it was so serious Caricom heads have obtained the support of the Chilean President to lead a team to Washington to “ensure we’re not penalised accidentally.”….”…
“A political analyst says the call US President Donald Trump made to Prime Minister Dr Keith Rowley on Sunday reflects the importance of T&T in the region. However, a former prime minister says more details on what the two leaders spoke about should be made public.
Prime Minister Rowley is the first Caribbean leader to have received a direct call from President Trump but the Office of the Prime Minister is remaining mum on whether the two leaders discussed the Foreign Accounts Tax Compliance Act (FATCA) and immigration issues.
US media had hinted hours before the call was made that the President intended to call Dr Rowley and Panamanian President Juan Carlos Varela. According to an Associated Press (AP) report, the call to Dr Rowley was made at about 4.40 pm on Sunday. The White House said the leaders discussed shared priorities, while the Prime Minister’s office said in a brief statement that the two leaders acknowledged the close working relationship between T&T and the US and committed to strengthening that relationship. They also committed to working together on security, trade and other matters
There was no indication from either the White House or the Office of the Prime Minister that FATCA or immigration was part of the discussion………..”
‘A future for financial services?’
Added by Barbados Today on February 18, 2017.
Sir Ron Sanders
“The following is the first part of a presentation delivered earlier today at a conference in Panama.
Globalization has been a one-way street of impositions by powerful countries; fiscal sovereignty has been violated by the strong; and tax competition remains under threat from the mighty. Indeed, if the current pattern of incursions, restrictions and false labelling of Caribbean jurisdictions as ‘tax havens’, and the Caribbean as a region of ‘high risk’, is not halted soon and swiftly, not only will financial services have no future, but the Caribbean region as a whole could be relegated to the backwater of global existence.
It is clear that the major member states of the Organization for Economic Cooperation and Development (OECD) have embarked upon a campaign to eliminate competition in financial services from Caribbean countries and other developing states since the 1990s. That campaign has gained validation in the international community by seducing or coercing some developing countries into participation in groups, created at the behest of G7 countries, ostensibly to establish globally acceptable rules on tax information exchange, transparency, common reporting standards, anti-money laundering, counter terrorism financing and tax evasion.
One such group is the OECD Global Forum on Transparency and Exchange of Information for Tax purposes which claims 139 members and in which the countries of the European Union are over-represented since they participate as individual nations and as a collective body. At the end of the day, the seemingly broad membership of the OECD Forum is window-dressing for the menacing objectives of the more powerful countries. The high number of members masks the fact that no small nation can resist the candy-coated but bitters pills with which they are presented.”………………………
I would like to take this opportunity, on the eve of important Congressional hearings on FATCA and CBT, to encourage everyone around the world to contribute even small amounts to our lobbyists in DC:
No matter how fatalist some of us may have become, we’ve got to fight on.
EVEN SMALL DONATIONS COUNT !
The Republican party has stated that repeal of CBT and FATCA are parts of their platform.
Let us hold them to their word— through lobbyists that are there to speak for us– and to remind those in DC what they have promised.
Keith Redmond has been active in France and online for the resolution of our issues in speaking to those affected as well as to French and European politicians in order to inform them about what matters to us. He is an active member on many FB groups related to our issues.
Both of these folks are ready and able to lobby Congress in DC. I am confident that they truly believe in our Cause. They have both contributed umpteen hours to our Cause and need our help to bankroll their expenses at this critical juncture. Please chip in! Even if it is a small amount !
I am counting on you!
We might regret it if we do not chip in our dues NOW !!!
in the name of FREEDOM !
FATCA journal article from Poland;
NAUKI O FINANSACH FINANCIAL SCIENCES
4(21) ● 2014
ISSN 2080-5993
Alicja Brodzka
Uniwersytet Ekonomiczny we Wrocławiu
e-mail: alicja.brodzka@ue.wroc.pl
‘THE DEADWEIGHT COST OF IMPLEMENTATION
OF THE FOREIGN ACCOUNT TAX COMPLIANCE ACT
(FATCA)’
“Summary: From 1 June 2013 FATCA – the new American law on the disclosure of financial
information about foreign accounts for tax purposes – came into force. The aim of the Foreign
Account Tax Compliance Act is to prevent the tax evasion of US citizens with offshore
accounts. The Act requires all foreign financial institutions to identify American people
in possession of the financial accounts (banking, brokerage, etc.), and then transmit that
information to the tax authorities of the United States. The penalty for failure to comply with
this requirement will be a 30% withholding tax on capital flows from the United States. The
article presents the main issues connected with FATCA and brings closer the arguments pro
and contra. As the Act results in new requirements which non-US financial institutions have
to fulfil, the paper looks both at the legislative and cost-related problems. It also analyses how
the new provisions will influence Polish financial institutions and their customers.” http://wir.bg.ue.wroc.pl/docstore/download.seam;jsessionid=CACBFD9EC83A488C700ACC14DE525849?fileId=WUTae2287f5e48c46f3b90dee8433e3b173
‘Ethiopian banks, financial institutions will be challenged by a US law’
Gezu Ayele Mengstu
“….In any normal circumstances it is not possible to think of any enforceability of laws of a given state outside of its territory. For laws to be applicable over all jurisdictions there should either be a multilateral treaty agreement between states or the law should be an international agreement to this effect which binds signatory states. Sometimes there are universal human rights agreements which get the force of law and applicability across borders.
In a world were economic power plays and controls political and decision-making powers, your laws can influence and even force any state in the world to comply. Any state, which resists enforcing a law of a superpower, can make it at the cost of losing any economic and trading benefits. But in the existing world everything seems possible to the US. The US is a superpower that can influence every state and individual anywhere in the world……….”…………..
http://www.channelnewsasia.com/news/video/fatca-could-undermine-us-asia-financial-relations-analysts/3181750.html
‘FATCA could undermine US-Asia financial relations: Analysts’
05 Oct 2016
update re Portugal and FATCA:
http://isaacbrocksociety.ca/2016/10/11/good-news-from-the-french-commission/comment-page-2/#comment-7685870
Guyana appears to think it will actually get useful information from the US under the FATCA IGA:
http://finance.gov.gy/media/opening-remarks-on-the-signing-of-the-fatca
Or maybe that’s just the usual politco-spin turning involuntary compliance with US extraterritorial demands into the appearance that it was voluntary, mutual and reciprocal.
Info on FATCA in Cambodia (thanks to Daniel Kuettel who posted it at https://www.facebook.com/groups/AmericanExpatriates/ )
“…………Jim Swander, the American CEO of Oxley Worldbridge Specialized Bank, said that this regulation was already making waves throughout the industry.
“For FBAR, it is really confusing for bankers,” he said, adding that American businesses or US citizens involved in business are typically listed as shareholders or hold joint accounts.
“The precaution that US companies are starting to take is that they are dropping all American signers on accounts because it is too much of a risk,” he said. “The other thing is that the IRS does not trust that FBARs are accurately being filed.”
He said the tax measures were making it more difficult for Americans to open offshore accounts as traditional financial hubs like Singapore have been turning away business.
“I can say that there are also banks in Cambodia that are looking at the costs of FACTA and FBAR compliance as a major burden,” he said, adding that compliant banks were simply providing data dumps of account information to US authorities.
“As for our bank, we simply will not deal with any Americans,” he said flatly.
So Phonnary, executive vice president of Acleda Bank, said that while compliance with the US tax authorities meant that the bank had to invest capital into human resources and infrastructure for data sharing, the transmission of US account details was not easy.
“The issue that we have with data exchange is that we send the information of our American account holders to the General Department of Taxation, and then they verify it and send it to the US authorities,” she said.
However, “if our reports are not checked and verified within seven days, they are immediately dismissed and we have to send it again for authorisation”, she said, adding that the coordination between the two governments was not yet smooth and deadlines were often missed.”
Does the paragraph above inspire confidence in terms of data protection?
For those following FATCA enabling legislative and political developments in Trinidad and Tobago:
‘The Tax Information Exchange Agreements Bill, 2016
An Act to repeal the Tax Information Exchange Agreements Act and
replace it with a new Tax Information Exchange Agreements Act which
would make provision for the implementation of agreements between
Trinidad and Tobago and other States providing for the exchange of
information for the purposes of taxation, to validate the sharing of
personal information held by the Board of Inland Revenue or financial
institutions and for related purposes.’
To be introduced in: House of Representatives
To be introduced on: 9 September, 2016
To be introduced by: The Hon. Colm Imbert, MP Minister of Finance
http://www.ttparliament.org/documents/2408.pdf
On FATCA and Poland;
Alicja Brodzka: ‘The deadweight cost of implementation of the Foreign
Account Tax Compliance Act (FATCA)’
NAUKI O FINANSACH
FINANCIAL SCIENCES
4(21)•2014
http://www.dbc.wroc.pl/Content/27322/Brodzka_The_deadweight_cost_of_implementation.pdf
FATCA debate upcoming in Trinidad and Tobago – worth keeping an eye on;
https://www.guardian.co.tt/news/2016-11-27/fatca-debate-december
“..Yesterday, UNC MP Dr Bhoe Tewarie said the Opposition has amendments for the legislation.
He added the US’ recent Donald Trump Presidential win and implications of that for the legislation, must be factored into debate.
“Given the likely position of the Trump aspect, I don’t know where this Fatca legislation in the US is going to lead,” Tewarie said…..”
Thanks Badger for all your incredible research skills and for keeping us up to date on what is going on in other countries. You do us a great service.
Ditto that, CG!
Via Peter Spiro on Twitter: five of the candidates for president of Somalia are U.S. citizens
http://www.africanews.com/2016/11/28/somalia-s-presidential-candidates-run-as-dual-citizens/
FWIW in the latest FFI list there are only 3 Somali FFIs: Dahabshil Bank International, Premier Bank, and IBS
https://web.archive.org/web/20161129132705/http://apps.irs.gov/app/fatcaFfiList/data/FFIListFullCsv.zip
Compare to Wikipedia, which lists 12 banks operating in Somalia
https://en.wikipedia.org/wiki/List_of_banks_in_Somalia
I don’t know enough to weigh the conclusions in this article, but it provides an intriguing amount of detail – and appears to be arguing that Trinidad and Tobago are not in imminent danger of a FATCA meltdown even without the passage of legislation enabling an IGA?
;
http://www.trinidadexpress.com/20161226/news/what-would-happen-if-tt-blanks-fatca
‘What would happen if T&T blanks FATCA
…and ends up like Belize’
Still T&T continues to demonstrate a higher sense of national sovereignty vis a vis the US Empire than Canada does;
http://blogs.angloinfo.com/us-tax/2017/01/07/fatca-drama-continues-in-trinidad-tobago/
‘FATCA Drama Continues in Trinidad & Tobago’
January 7, 2017
http://bahamaspress.com/2017/01/06/foreign-account-tax-compliance-act-fatca-is-america-an-honest-partner/
Foreign Account Tax Compliance Act (FATCA) : Is America An Honest Partner?
Jan 6, 2017
“….America is, at best, a hypocrite — asking for information on their citizens without informing in return—and at worst, a bully, forcing others to do what they have no intention of doing themselves.
But eventually, even bullies have to honor their deals. If they don’t, eventually their victims will gang up on them to get their own back.
Given the pain and anguish FATCA is causing around the world, I predict that in the near future some nations will refuse to honor their FATCA IGAs on the grounds of lack of U.S. reciprocity. Some of those nations may be too big to kick out of the global financial system.
And what then? Well, the bully might just get his comeuppance. I can’t wait to see that.”
‘Can FATCA Pass the International Jurisprudence Test?’
Published on January 29, 2017
By Stephen Kangal
January 29, 2017
Stephen KangalThere was a quite visible and audible dearth in the House possessive of the requisite international relations expertise to analyze and dissect the internationally illegal imposition of US- domestic FATCA on T&T from a foreign policy/international law perspective.
“…………. What invalidates the IGA is that coercion and threats against the financial integrity of T&T are used to force T&T to sign and conclude the Agreement that the Minister of Finance referred to as having dodge several bullets from the US Treasury. The text was a unilateral US-imposed draft.
It is patently clear that the US is in fact interfering in the domestic and parliamentary affairs of T&T and giving many unilateral deadlines………..”
See:
Call for Comments on the Tax Information Exchange Agreements Bill, 2016
1 Feb 2017
The Joint Select Committee established for consideration of the Tax Information Exchange Agreements Bill, 2016 is calling for comments on the Bill.
The purpose of the Bill is to implement certain tax information exchange agreements entered into between Trinidad and Tobago and the United States of America.
The Committee is inviting members of the public to submit comments on the Bill, which includes proposed amendments and is available here. PDF Icon The report of the Joint Select Committee, which was laid in the House of Representatives on February 3, 2017 can be found here. PDF Icon
THE DEADLINE FOR SUBMISSIONS IS FRIDAY FEBRUARY 10, 2017.
Written submissions should be addressed to the Secretary to the Committee as stated below or can be forwarded via email to jscfatca@ttparliament.org.
The Secretary
Joint Select Committee on Tax Information Exchange Agreements Bill, 2016
Office of the Parliament of Trinidad and Tobago
Levels G-9, Tower D
International Waterfront Centre
1A Wrightson Road
Port-of-Spain
http://www.ttparliament.org/about.php?mid=36&id=mrAC8325
PARLIAMENT
REPUBLIC OF TRINIDAD AND TOBAGO (ELEVENTH PARLIAMENT- SECOND SESSION 2016/2017)
REPORT
OF THE
JOINT SELECT COMMITTEE
ON
THE TAX INFORMATON EXCHANGE
AGREEMENTS BILL, 2016
http://www.ttparliament.org/reports/p11-s2-J-20170203-TIEA-r1.pdf
The proposed bill is here;
http://www.ttparliament.org/documents/2464.pdf
See article also;
https://www.guardian.co.tt/news/2017-02-03/fatca-law-out-public-comment
Responding to an article in the Jamaica Observer: (will use this link to communicate to parties involved. Comment under moderation)
T&T Gov’t again bows to Opposition demands on FATCA
Tuesday, February 14, 2017 | 8:37 AM
http://www.jamaicaobserver.com/latestnews/T-T-Gov-t-again-bows-to-Opposition-demands-on-FATCA
Quoting from the article: “accused the Government of trying to terrorise the population”
These are the people to be terroised by the T&T Government passage of the FATCA IGA: T&T citizens and residents who may have lived in T&T all their lives, who pay taxes to T&T, yet because of a parent or birth in the U.S. are considered U.S. persons.
Said again: T&T citizens and residents who may have lived in T&T all their lives will be among those terroised.
The FATCA IGA will require T&T banks to ask all new account applicants under penalty of perjury to certify that they are or are not U.S. persons. The FATCA IGA will require all banks to identify U.S. persons who may have $50K or more in a bank account (such as one just sold a house!). This is not a trivial or a free exercise of the banks which must pay for this all themselves (the U.S. will not pay).
The End Game here is in support of U.S. Citizenship Based Taxation – to tax any U.S. persons (citizens or Green Card holders) on their worldwide income — no matter where in the world they live! Even it they live in another country, are paying their fair share of taxes there, receive no U.S. government services (roads, hospitals, unemployment, etc.), and receive no U.S. protection of property in this other country. The U.S. Extraterritorial Taxation fails under accepted norms of when taxation is justified.
If the U.S. was just after U.S. residents with accounts in T&T, and will pay for the additional T&T bank compliance costs, that would be another story. The dragnet includes T&T citizens resident in T&T!
T&T like all other countries in the world support Residence Based Taxation (except the U.S.,Eritrea and maybe North Korea). Adopting this FATCA IGA will be against the T&T policy of Residence Based Taxation, and lead to government and bank discrimination and privacy violation against a subset of the T&T population.
Are all T&T citizens resident in T&T equal or will the T&T government let a foreign government force it to discriminate against a subset of T&T citizens making them 2nd class? Will T&T not speak out and defend its sovereignty?
If a T&T resident is not now in the U.S. tax system (because they lived in T&T their whole lives) it may cost them tens of thousands of dollars to become compliant, then an additional $2,350 to renounce U.S. citizenship to get out of all this.
“the US Embassy here had informed last week that “there has been no change to the US position on FATCA”. Neither has there been a change in U.S. corporate tax policy, inspite of the fact that this was a big campaign point of Donald Trump. His team is not fully in place yet. Changes will happen as the U.S. Executive is of the same party as the U.S. Senate and U.S. House.
Donald Trump has vowed to repeal many Obama Executive Orders. The FATCA IGA have their authority on Obama Executive Order. Obama did not take IGAs to the U.S. Senate for review and approval as required for all international treaties, of which the IGA are. Therefore, the FATCA IGA are unconstitutional, so says Republicans Overseas, Rand Paul, Mike Meadows, and many others.
Additionally, repeal of FATCA is in the Republican Party Platform.
There are many countries (mostly in Africa) which have not signed an IGA. There is no case of the U.S. bankrupting any country because they did not sign an IGA. Such act would be internationally condemned.
Here are some ways forward for T&T:
As the FATCA IGA represents substantial compliance costs on T&T banks, and represents violation of T&T discrimination and privacy laws, and violates T&T public policy of Residence Based Taxation, T&T shall wait to pass this legislation (your choice T&T):
1) As repeal of FATCA is in the Republican Party Platform we shall hold off approving the FATCA IGA pending U.S. approval of Republican tax reform measures expected in 2017.
2) As the U.S. Constitution requires international treaties to be submitted to the U.S. Senate for review and approval, T&T shall not pass FATCA IGA legislation until the U.S. Senate has reviewed and approved the FATCA IGA.
3) As in the FATCA IGA is a promise of reciprocation of “like for like data, T&T shall not pass such legislation, until the U.S. passes legislation requiring U.S. banks to change their new account procedures and vet through their existing account bases for T&T national accounts in the U.S. Noted such legislation has not been passed in the U.S. and that there is expected opposition from the U.S. Bankers Association to any such legislation and the regulation and costs this would impose on U.S. banks.
4) As the FATCA IGA text says that parties are not required to provide FATCA data that is in violation of public policy, T&T declares that it is not required to provide FATCA data as it would violate the T&T policy of Residence Based Taxation for its resident citizens.
Choices: I suggest 1,2, and 3 while mentioning concerns about 4.
@ JC
Popped in a short comment there but warning to others … moderation is slow at the Jamaica Observer. Having an exchange with anyone there is somewhat like the time delay one would get talking with a person on Pluto.
This is an intriguing new development from “‘he Caricom heads of government” ;
See;
Editorial
‘Lobbying against FATCA on Capitol Hill’
Sunday, February 19, 2017
………”…The Caricom heads of government, through Antigua and Barbuda Prime Minister Gaston Browne, announced that the community is considering hiring a US firm to lobby the Trump Administration and Congress on FATCA…”……
“……Interestingly, the front- runner for the lobbying contract is a firm headed by former US Attorney General Eric Holder, a democrat and black American with one immigrant parent (Barbados) who would have been part of the US apparatus for enforcement. Perhaps there is some sense in that. Who better to deal with FATCA than he who enforced it?….”……
http://www.jamaicaobserver.com/editorial/Lobbying-against-FATCA-on-Capitol-Hill_90022
“..This week’s Caricom Intersessional in Guyana also featured the compliance issue and threat posed to the banking system by Fatca derisking and de-banking. Rowley said it was so serious Caricom heads have obtained the support of the Chilean President to lead a team to Washington to “ensure we’re not penalised accidentally.”….”…
‘ANY CARICOM SOLUTIONS ON FATCA’
18 of february 2017
http://news.anotao.com/link/tt/2017020199525/www.guardian.co.tt/columnist/2017-02-18/any-caricom-solutions-fatca
“A political analyst says the call US President Donald Trump made to Prime Minister Dr Keith Rowley on Sunday reflects the importance of T&T in the region. However, a former prime minister says more details on what the two leaders spoke about should be made public.
Prime Minister Rowley is the first Caribbean leader to have received a direct call from President Trump but the Office of the Prime Minister is remaining mum on whether the two leaders discussed the Foreign Accounts Tax Compliance Act (FATCA) and immigration issues.
US media had hinted hours before the call was made that the President intended to call Dr Rowley and Panamanian President Juan Carlos Varela. According to an Associated Press (AP) report, the call to Dr Rowley was made at about 4.40 pm on Sunday. The White House said the leaders discussed shared priorities, while the Prime Minister’s office said in a brief statement that the two leaders acknowledged the close working relationship between T&T and the US and committed to strengthening that relationship. They also committed to working together on security, trade and other matters
There was no indication from either the White House or the Office of the Prime Minister that FATCA or immigration was part of the discussion………..”
from;
http://www.guardian.co.tt/news/2017-02-20/reflection-tt’s-importance
‘Analyst on Trump, Rowley talks:
A reflection of T&T’s importance’
Rosemarie Sant
Published:
Tuesday, February 21, 2017
‘A future for financial services?’
Added by Barbados Today on February 18, 2017.
Sir Ron Sanders
“The following is the first part of a presentation delivered earlier today at a conference in Panama.
Globalization has been a one-way street of impositions by powerful countries; fiscal sovereignty has been violated by the strong; and tax competition remains under threat from the mighty. Indeed, if the current pattern of incursions, restrictions and false labelling of Caribbean jurisdictions as ‘tax havens’, and the Caribbean as a region of ‘high risk’, is not halted soon and swiftly, not only will financial services have no future, but the Caribbean region as a whole could be relegated to the backwater of global existence.
It is clear that the major member states of the Organization for Economic Cooperation and Development (OECD) have embarked upon a campaign to eliminate competition in financial services from Caribbean countries and other developing states since the 1990s. That campaign has gained validation in the international community by seducing or coercing some developing countries into participation in groups, created at the behest of G7 countries, ostensibly to establish globally acceptable rules on tax information exchange, transparency, common reporting standards, anti-money laundering, counter terrorism financing and tax evasion.
One such group is the OECD Global Forum on Transparency and Exchange of Information for Tax purposes which claims 139 members and in which the countries of the European Union are over-represented since they participate as individual nations and as a collective body. At the end of the day, the seemingly broad membership of the OECD Forum is window-dressing for the menacing objectives of the more powerful countries. The high number of members masks the fact that no small nation can resist the candy-coated but bitters pills with which they are presented.”………………………
(Sir Ron Sanders is Antigua and Barbuda’s Ambassador to the United States and the Organization of American States (OAS
https://www.barbadostoday.bb/2017/02/18/a-future-for-financial-services/
I would like to take this opportunity, on the eve of important Congressional hearings on FATCA and CBT, to encourage everyone around the world to contribute even small amounts to our lobbyists in DC:
https://www.gofundme.com/American-Overseas-Advocate (Keith Redmond)
http://repealfatca.com/ (Jim Jatras).
Please post if you know of others….
No matter how fatalist some of us may have become, we’ve got to fight on.
EVEN SMALL DONATIONS COUNT !
The Republican party has stated that repeal of CBT and FATCA are parts of their platform.
Let us hold them to their word— through lobbyists that are there to speak for us– and to remind those in DC what they have promised.
Keith Redmond has been active in France and online for the resolution of our issues in speaking to those affected as well as to French and European politicians in order to inform them about what matters to us. He is an active member on many FB groups related to our issues.
Jim Jatras has been present since the FATCA Forum (https://www.youtube.com/user/FATCAForum). He has created and authored the
http://repealfatca.com/ website since shortly after the FATCA Forum adjourned.
Both of these folks are ready and able to lobby Congress in DC. I am confident that they truly believe in our Cause. They have both contributed umpteen hours to our Cause and need our help to bankroll their expenses at this critical juncture. Please chip in! Even if it is a small amount !
I am counting on you!
We might regret it if we do not chip in our dues NOW !!!
in the name of FREEDOM !
FATCA journal article from Poland;
NAUKI O FINANSACH FINANCIAL SCIENCES
4(21) ● 2014
ISSN 2080-5993
Alicja Brodzka
Uniwersytet Ekonomiczny we Wrocławiu
e-mail: alicja.brodzka@ue.wroc.pl
‘THE DEADWEIGHT COST OF IMPLEMENTATION
OF THE FOREIGN ACCOUNT TAX COMPLIANCE ACT
(FATCA)’
“Summary: From 1 June 2013 FATCA – the new American law on the disclosure of financial
information about foreign accounts for tax purposes – came into force. The aim of the Foreign
Account Tax Compliance Act is to prevent the tax evasion of US citizens with offshore
accounts. The Act requires all foreign financial institutions to identify American people
in possession of the financial accounts (banking, brokerage, etc.), and then transmit that
information to the tax authorities of the United States. The penalty for failure to comply with
this requirement will be a 30% withholding tax on capital flows from the United States. The
article presents the main issues connected with FATCA and brings closer the arguments pro
and contra. As the Act results in new requirements which non-US financial institutions have
to fulfil, the paper looks both at the legislative and cost-related problems. It also analyses how
the new provisions will influence Polish financial institutions and their customers.”
http://wir.bg.ue.wroc.pl/docstore/download.seam;jsessionid=CACBFD9EC83A488C700ACC14DE525849?fileId=WUTae2287f5e48c46f3b90dee8433e3b173
From Ethiopia;
10 Jun, 2017
http://www.thereporterethiopia.com/content/ethiopian-banks-financial-institutions-will-be-challenged-us-law
‘Ethiopian banks, financial institutions will be challenged by a US law’
Gezu Ayele Mengstu
“….In any normal circumstances it is not possible to think of any enforceability of laws of a given state outside of its territory. For laws to be applicable over all jurisdictions there should either be a multilateral treaty agreement between states or the law should be an international agreement to this effect which binds signatory states. Sometimes there are universal human rights agreements which get the force of law and applicability across borders.
In a world were economic power plays and controls political and decision-making powers, your laws can influence and even force any state in the world to comply. Any state, which resists enforcing a law of a superpower, can make it at the cost of losing any economic and trading benefits. But in the existing world everything seems possible to the US. The US is a superpower that can influence every state and individual anywhere in the world……….”…………..
from Kuwait;
https://www.arabtimesonline.com/news/compliance-kuwait-fatca-100/