EDMONTON: SUNDAY, APRIL 20

TIME: 9:30am-12:30pm

VENUE: Don Wheaton Family YMCA at 10211 102 Ave., Edmonton, AB T5J 0A5
(underground parking available at facility)

Don Wheaton Family YMCA (Central)

I will be flying out to Edmonton to attend, and to assist John with this meeting. I look forward to meeting my fellow Edmontonians who have been accused of being American. Come listen, get the pertinent information about these issues, and then make your decisions proactively rather than reactively.

~ GwEvil ~

By Blaze
Finally, I’m posting a synopsis of Solving the Problem of US Citizenship information session presented by John Richardson of citizenshipsolutions.ca that was held in London, Ontario on February 8, 2014.

I apologize for the delay. Other FATCA projects have consumed my life.

You can read the synopsis in the link, but here are a few highlights:

CITIZENSHIP:

John first gave an overview of US citizenship laws, tax laws, renunciation and relinquishment and many changes that have taken place over decades.

People have many differing circumstances and each one is unique. Because of the complexities, John stressed:

“The bottom line is you have to check the law at the time the act took place.”

Continue reading →

Here is a scenario, not unrealistic, which should explain to reigning Canadian government how they have failed in their duty to stand on guard for Canada by betraying Canadian citizens to the IRS.

Jake is a businessman in Canada who employs 50 people at his workshop in the Toronto area. He is nearing retirement age. He has made a decent living but has put so much of his company’s profits back into his business that he has basically lived a frugal, middle class lifestyle. He paid for his kids’ educations, but they went to Canadian universities not elite US Ivy League schools. His wife died a couple years ago, and he inherited her half of the house and her RRSP.  Continue reading →

http://www.jamesrajottemp.ca/issues/finance-and-taxation/offshore-voluntary-disclosure-initiative

Some constituents have expressed concern regarding the U.S. Internal Revenue Service’s Offshore Voluntary Disclosure Initiative. This is exclusively a U.S. program, with the federal Canadian Government playing no part in its creation or execution.

I appreciate that many individuals are frustrated to learn that they can face penalties for previously undisclosed foreign accounts and assets. The U.S. government requires its citizens, even those living abroad, to file income tax returns and associated tax forms – even if those U.S. citizens do not have to pay any U.S. income tax because they already pay Canadian income tax, and even if they have dual citizenship with Canada. This requirement has been in place since 1913.

It is unfortunate that the U.S. maintains this requirement as most other industrialized nations have moved away from this specific measure. However, it is entirely within the purview of the U.S. government to impose such a requirement.

While it is within the U.S. government’s authority to do this, it is not good policy in my view. That is why I have directly raised the concerns of many constituents of Edmonton-Leduc like you regarding the Offshore Voluntary Disclosure Initiative with the Honourable Jim Flaherty, Minister of Finance.

Minister Flaherty has been in constant contact with his U.S. counterparts, pressuring them to understand fully their actions against Canadian residents. Below is a letter from Minister Flaherty submitted to several American papers expressing concerns on FATCA/FBAR.

– See more at: http://www.jamesrajottemp.ca/issues/finance-and-taxation/offshore-voluntary-disclosure-initiative#sthash.saRd7CJc.dpuf

Something I think we need to better understand (or at least I do),

Roy Berg, director of U.S. Tax Law at Moodys Gartner Tax Law LLP, discusses concerns that Canada’s approach to FATCA may spark a dispute with the U.S. over personal trusts:

Advisor.ca, Dean DiSpalatro, March 31, 2014: “Feds bury FATCA law in Budget bill”

On Friday the Conservative government tabled legislation to implement key elements of this year’s Budget. But it contains more than tax credits.

Buried within is a revised version of draft legislation implementing the Intergovernmental Agreement (IGA) with the U.S. on FATCA. A Department of Finance press release makes no mention of this part of the bill.

…

If the trust has a Global Intermediary Identification Number (GIIN), the firm will consider it a fully compliant Foreign Financial Institution (FFI). As a result, the trust will receive the dividends in full.

If the trust doesn’t have a GIIN, the U.S. firm withholds 30% and passes it to the IRS. Berg says the same will happen with securities accounts based in the U.K., Ireland and other countries that have IGAs with the U.S. Their IGAs and guidance notes label trusts as FFIs.

How did our lives become so complicated?

“Bank of Hawaii is closing the accounts of Iranian nationals living in the state, a move that is angering Iranian activists and civil rights supporters.”

“It’s “outrageous” for the bank to take such action.”

“This is an extreme case, because even in the letter they say it’s not based on transactions,” Pourjalali said. “The accounts are closing based on citizenship.”

“We strongly urge for Bank of Hawaii to reverse this discriminatory action and to ensure its policies do not violate constitutional and legal protections for U.S. persons”

Source

FATCA is a US federal crime which violates the American constitution since it has caused Americans living abroad to be denied banking services due to their citizenship.

UPDATE:

Russian Finance Minister wants to discuss FATCA agreement with US during visit to Washington

Innocente has provided a Google translation of a new Russian article from Vedomosti which is worthy of its own post.  It has also been added as a comment to this previous related post:  Why Russia’s oligarchy supports FATCA.

A week or two ago, it appeared that a FATCA agreement between the U.S. and Russia was close to being signed, despite the events in the Ukraine and Crimea.  Now there are fears that the U.S. may delay the agreement as a sanction for Russia’s annexation of the Crimean peninsula.

There appears to be much more at play here than meets the eye.  Russia has been demanding true reciprocity from the U.S. for any FATCA or FATCA-like deal.  The Crimean crisis may be just the excuse the U.S. needs to back away from a promise it has no Congressional authority to keep.  Empty promises haven’t kept dozens of other countries from signing IGA’s, but Russia has been steadfastly calling America’s bluff.  Now, FATCA may move to the very centre of the growing political, economic and military showdown between these two old Cold Warriors, especially once withholding penalties on pass-through payments begin to hit European and American banks.

Translated below is the Vedomosti.ru article dated March 31, 2014 entitled: “США могут отказаться подписывать с Россией соглашение о FATCA” :

U.S. may refuse to sign an agreement with Russia on FATCA
Russia is ready to join the U.S. law on the exchange of tax information. But the U.S. may refuse as a punishment for Crimea.
Margarita Papchenkova
Vedomosti.ru
31.03.2014

Last week, the Finance Ministry sent the government a draft directive on signing the agreement with the U.S. on the exchange of information, said two federal officials. Such an order was given to the Ministry of Finance at a meeting with First Deputy Prime Minister Igor Shuvalov said his representative, after the approval of the government will give directives to the Ministry sanctioned the negotiations with the U.S. . There are only technical obstacles, such as transfer agreements, says official familiar with the position of the Ministry of Finance. A ministry spokesman declined to comment.

In fact, we are talking about Russia’s accession to U.S. law FATCA (Foreign Account Tax Compliance Act). Requiring banks and financial institutions of all countries by March 31, 2015 to supply the U.S. Internal Revenue Service (IRS) information on operations of U.S. customers. If the bank does not attach to the system before July 1 this year, it faces sanctions: a payment to its address of any passive income from U.S. assets will be deducted 30 % tax (currently tax at source in the U.S. – 10% on dividends and 0% for percent). And in 2017 – with the proceeds from the sale of shares or bonds of U.S. companies, as well as ” transit fees “.

But the foreign bank can transmit information not directly but through the local tax authorities. To do this, the government should sign an agreement with the United States. This option was chosen, for example, by the UK and Germany.

Russia was going to conclude an agreement last summer but negotiations dragged on. It was decided not to sign an agreement on FATCA but a mutual exchange of information ( i.e., the United States is committed to providing information on Russian taxpayers). Draft agreement reproduces almost U.S. law, although FATCA it is not explicitly mentioned.

But now there may be a new unknown obstacle, which will determine whether the United States to sign an agreement, says an official involved in the discussion of the project: “As long as the signals from the United States have been reported, neither good nor bad .” Washington could delay the signing, the Ministry of Finance officials previously feared: it can become an informal sanction for the Crimea annexation.

Damage to the financial system can be overwhelming. 30% tax on payments to Russian banks and financial companies should hold not only American, but also any banks that joined the FATCA, including European. Also there is a danger that banks will close correspondent accounts of those who have not joined the FATCA, then may lock dollar payments feared Russian banker.

U.S. Treasury refused to comment on the talks. Last week, Finance Minister Anton Siluanov reassured: the worsening of relations does not lead to the transfer agreement not being signed – but officials will do everything so that banks can provide information to IRS.

The government is preparing a fallback really tells White House staffer – to allow banks to transfer information IRS directly. But you have to change Russian law.

By July 1, banks may have to choose: to fulfill the Russian law and incur losses or American, breaking  Russian law, laments the director ‘s compliance PSB Svetlana Yermolayeva. Legal risks arise due to retention and a 30% tax on income customers who have been recognized by the Americans, explains Yermolayeva, Russian law does not provide for retention of direct customer funds on the grounds set forth in FATCA.

Possible to meet the requirement of bank secrecy, even if not governed by law, according to the manager of another bank : finding American client to get his written consent, but better is directive for the transfer of information to the IRS. Technically it is possible, it is reassuring: system identification and interaction with clients been established in many banks.

In the performance of FATCA banks will face many other problems, warns the head of the group in the field of Compliance KPMG Dmitry Chistov. U.S. demand to disclose the accounts not only U.S. customers, but also the companies of which they are beneficiaries. At the same time under Russian law the beneficiary – the owner of not less than 25 % stake, and on FATCA – 0 or 10 % depending on the type of company, explains Chistov.

To start an independent exchange with the United States on July 1, banks should have until April 25 to register online IRS, obtain an identification code and enter into a contract with the IRS, reminds Chistov. Many from last year started to be registered at your own risk, employee knows Russian bank. “Given the political situation, it is possible that the agreement is not signed, and we can not wait that long – it is necessary to prepare for the execution of FATCA», – says the banker.”

http://www.vedomosti.ru/finance/news/24672711/nakazanie-dlya-bankov?full#cut

 

I thought for old times sake we were overdue for a repost of US President Obama’s official announcement of support for FATCA in 2009. I know many newcomers have not yet seen this video so I thought this might be a good time to re-post

It starts at around just the 16:00 minute mark. I am currently working on trying to get a video clip of just Obama notwithstanding the earlier part of the video with John Richardson’s great presentation.

https://www.youtube.com/watch?v=xZhcsiuyDuc