For the great enemy of truth is very often not the lie — deliberate, contrived and dishonest — but the myth — persistent, persuasive, and unrealistic.- John F. Kennedy, 1962. From NPR's The Best Commencement Speeches, Ever. https://t.co/lHJbiCXvrh

— U.S. Citizen Abroad (@USCitizenAbroad) March 11, 2020

The Myth(s)

Whether #offshore tax evasion was costing USA 200 billion, 100 billion or 36 billion, it's clear that Elise Bean's claim of 200 billion (which she committed to in the Meadows hearing) was fantasy, unsupportable and therefore an intentional false statement! https://t.co/S7hXwDHNWX pic.twitter.com/A6w8Oh8sps

— U.S. Citizen Abroad (@USCitizenAbroad) September 4, 2019

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Introduction

With Representative Mark Meadows having appointed Chief of Staff for the Trump White House, it’s interesting to remember some of the specifics of Representative Meadow’s FATCA hearing. The video star of the hearing was Donna Lane Nelson who was forced to renounce her U.S. citizenship because of issues related to U.S. taxation and FATCA. The second star of the hearing was Professor Elise Bean – the Democrat’s primary witness.

Interestingly, in September of 2019 Professor Bean was invited by “Global Witness” to speak in London where she was honoured for work in relation to FATCA. The Meadows hearing was attended by a diverse group of people including. Anthony Parent of IRS Medic captured some interesting video footage including the presentation of Professor Bean. His commentary is interesting. One must ask: how could such a damaging piece of legislation have been created with such a minimal understanding or callous disregard for the consequences?

Perspective 1 – Professor Elise Bean: Some people believe it when they see it. Others see it because they believe it.

In a thoughtful video @IRSMedic introduces Law Professor Elise Bean by analyzing her testimony at the 2017 Meadows hearing: "What #FATCA Architect Elise Bean doesn't understand about FATCA" – You will not believe what you will hear! https://t.co/ClAkAjF3W9

— U.S. Citizen Abroad (@USCitizenAbroad) September 3, 2019

Perspective 2 – Donna Lane Nelson – One of the small number of inconsequential people forced to renounce U.S. citizenship

Donna Lane Nelson – who always paid her US taxes – explains: "Because of #FATCA I am no longer a U.S. citizen …I realized that if I was going to continue living in Switzerland I would have to renounce my US citizenship." https://t.co/jk8VtA235M

— U.S. Citizen Abroad (@USCitizenAbroad) September 3, 2019

Perspective 3: A proponent of FATCA is somebody who thinks about FATCA. An opponent of FATCA is somebody who understands FATCA

We're here with Elise Bean and @OliverBullough to discuss what lessons the UK can learn from anti-money laundering efforts in the US.
If you couldn't make it this morning, keep an eye on our channels for an upcoming blog summarising the event.#GWBreakfast pic.twitter.com/1TSNxemvho

— Global Witness (@Global_Witness) September 3, 2019

Attention this post is NOT fake news! This post is NOT about tax compliance!

I am pleased to announce that Congressman Mark Meadows will become White House Chief of Staff. I have long known and worked with Mark, and the relationship is a very good one….

— Donald J. Trump (@realDonaldTrump) March 7, 2020

Readers of Brock may recall that Representative Meadows chaired the 2017 FATCA hearing in Washington, DC. This was reported on extensively at the Issac Brock Society in various posts including this transcript. The primary Government witness was Elise Bean (currently a professor at Wayne State Law School).

This could NOT be bad news for those who oppose FATCA. The White House does have the authority to direct U.S. Treasury to make many regulatory changes to alleviate the pain experienced by Americans abroad (with or without Congressional repeal of citizenship taxation).

More extensive coverage is found at American Expat Finance.

It’s interesting how things like the 2017 FATCA hearing can produce possible unexpected benefits …

Part 1: From the Renounce US Citizenship Blog – CIRCA 2013 – The Enduring Human Need To Live “Form Free” – A bit of Brock Nostalgia

Prologue: As we approach March 18, 2020, which is the 10th Anniversary of #FATCA, it's important to remember that what unites all people, of all kinds is: "The Need to Live “Form Free” https://t.co/KfdEr5s1VP via @ADCSovereignty

— U.S. Citizen Abroad (@USCitizenAbroad) March 5, 2020

“The United States is the only developed country in the world that subjects its nonresident citizens to complex, ongoing, multiple, and frequently meaningless financial forms and reportbacks.  Recent new enforcement initiatives threaten to exacerbate the already onerous burdens imposed by longstanding American exceptionalism. The resulting current situation is fraught with uncertainty, inconsistency, and anxiety.”

The United States – AKA – “Form Nation” has imposed a tyranny of forms on its citizens. U.S. citizens abroad are required to file up to 45 information forms each year including FBAR and FATCA. The financial cost is crippling. As a result, U.S. citizenship has been priced out of the market.

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March 18, 2020 marks the tenth anniversary of FATCA? What are you doing to celebrate?

Coming off a successful article yesterday, CBC Reporter Elizabeth Thompson is keeping FATCA in the news. FATCA is real news and not fake news.

CRA should tell people when their banking records are shared with U.S., say critics | CBC News https://t.co/rXidz7Mww7

— U.S. Citizen Abroad (@USCitizenAbroad) March 4, 2020

(Look carefully at the above tweet. Notice that the text refers to the CRA. The picture is of the IRS building. Yes, it’s true that FATCA has turned the CRA into an extension of the IRS. Maybe, Canadians should just start filing their tax returns directly with the IRS.)

In Canada Elizabeth Thompson is the only journalist demonstrating an interest in this issue. Because of the number of articles she has written, she has “in effect” become a “One Reporter FATCA Wrecking Crew”. Opponents of FATCA should be grateful that she is keeping FATCA in the Canadian media. No other reporter in Canada is.

FATCA at ten …

In 2012, some in the compliance industry referred to FATCA as “The Gift That Just Keeps On Giving”. Careers have been and continue to be built around FATCA. In fact, I am reminded of the following @USCitizenAbroad tweet from March 19, 2013 which worshipped the compliance opportunities generated by FATCA:

@MopsickTaxLaw Great post on "FATCA Feast" think you salivating people mean "stakeholders" – not "steakholders" http://t.co/8CLv2U0Ija

— U.S. Citizen Abroad (@USCitizenAbroad) March 19, 2013

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Prologue – Today as reported by Elizabeth Thompson at CBC

Stakes getting higher for Canadian residents with U.S. citizenship and could include fines or bank accounts being closed. https://t.co/icLTbKUrjU #cdnpoli #FATCA #tax

— Elizabeth Thompson (@LizT1) March 3, 2020

Introduction – About the background to this

1. Article 2 of the Canada U.S. FATCA IGA includes an obligation to report the U.S. Social Security Number of the U.S. Person. Here is what Article 2 of the IGA says:

Article 2

Obligations to Obtain and Exchange Information with Respect to Reportable Accounts

1. Subject to the provisions of Article 3 of this Agreement, each Party shall obtain the information specified in paragraph 2 of this Article with respect to all Reportable Accounts and shall annually exchange this information with the other Party on an automatic basis pursuant to the provisions of Article XXVII of the Convention.

2. The information to be obtained and exchanged is:

a) In the case of Canada with respect to each U.S. Reportable Account of each Reporting Canadian Financial Institution:

(1) the name, address, and U.S. TIN of each Specified U.S. Person that is an Account Holder of such account and, in the case of a Non-U.S. Entity that, after application of the due diligence procedures set forth in Annex I, is identified as having one or more Controlling Persons that is a Specified U.S. Person, the name, address, and U.S. TIN (if any) of such Entity and each such Specified U.S. Person; …

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Do you believe that Treasury is accurately reporting the number of people renouncing U.S. citizenship? Given the long wait times in Canada, can the absurdly small number of renunciations reported by Treasury be accurate?

From @HelenBurggraf: Questions continue to be asked, as U.S. list of Q4 renunciants contains fewer than 300 names. Given wait times of up to one year to renounce in Canada this number cannot be believed and that's a #FATCA! https://t.co/8iVP3WOs9E

— U.S. Citizen Abroad (@USCitizenAbroad) February 29, 2020

Closing renunciation centres in Halifax and Quebec City will increase wait times and make it more difficult for dual citizens to renounce

Friday Feb 28, 2020 the State Department announced that Halifax and Quebec City no longer processing renunciations of U.S. citizenship. Dual citizens in Canada must attend: Toronto, Ottawa, Montreal, Vancouver or Calgary. Increased wait + more expense for those in Atlantic Canada

— U.S. Citizen Abroad (@USCitizenAbroad) February 29, 2020

Clearly "Not All #AccidentalAmericans Are The Same" – "U.S. Treasury remains silent as bank accounts of EU 'accidental Americans' still being frozen" https://t.co/oB2Gdmb88B

— U.S. Citizen Abroad (@USCitizenAbroad) February 17, 2020

The article referenced in the above tweet from Helen Burggraf from American Expat Financial begins with:

The U.S. Treasury is continuing to maintain its silence with respect to the issues European banks have been struggling with for months over their perceived need to report to the U.S. – under the tax evasion law known as FATCA – government tax information details on certain of their American account-holders that they don’t have, European banking sources, expat groups and others report.

This is in spite of the fact that so-called “accidental Americans” in Europe are continuing to have their non-U.S. bank accounts frozen in cases where their banks say they have failed to provide “Tax Information Numbers” (TINs, typically Social Security numbers) as the banks say FATCA requires them to have as of the end of last year, according to sources in the accidental American community.

In the same way that U.S. “citizenship-based taxation” impacts people differently in different countries, FATCA impacts people differently in different countries. Canada and Europe are home to large numbers of “Accidental Americans” (however they may be defined). Although Canada and most European countries have the same model 1 IGAs, it appears that the “FATCA Experience (How do you like your freedom now?) differs between FATCA and Europe. Specifically: more Europeans are experiencing: pressure to provide U.S. Social Security Numbers, bank account closures and the resulting pressure to enter the U.S. tax system.

Interestingly the latest catalyst for FATCA problems is the “panic” resulting from a supposed December 31, 2019 for Accidental Americans to supply U.S. TIN numbers (AKA Social Security Numbers) to the banks. At the risk of oversimplification, what happened was this:
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Update – February 15, 2020

See the following exchange in Parliament – this is riveting!

While the US continues to deny justice to Harry Dunn, will the Prime Minister commit today to seek an equal and balanced extradition relationship with the US? pic.twitter.com/uBcFgV5Fzu

— Jeremy Corbyn (@jeremycorbyn) February 13, 2020

Prologue

I have urged the Home Secretary to delay the extradition of Mike Lynch until his UK civil trial has finished. In the long term, we need to re-balance our extradition treaty with the US. We need to give British citizens the protection, certainty and the justice that they deserve. pic.twitter.com/fm1Mklq5f2

— David Davis MP (@DavidDavisMP) January 23, 2020

David Davis is a British MP – with an interesting career. The video referenced in the above captures him speaking to an almost empty (how can this be) House of Commons about:

1. The imbalance in the UK US Extradition Treaty**

2. The inappropriateness of the imbalance

3. The need to “rein in” the US extraterritorial tendencies.

If you go his Official Site, you will find a link an article written by him discussing the treaty in the context of UK Businessman Michael Lynch.* I highly recommend the article to: (1) Freedom loving individuals everywhere as an example how international agreements and treaties can restrict opportunities and freedom and (2) Individuals the world over who want to understand how international agreements (which appear to be for the purposes of preventing terrorism practised by individuals) can be used as (instruments to promote terrorism by governments).

About the Lynch case

The US-UK extradition treaty is a bad treaty. Last week's arrest of Dr Mike Lynch for his potential extradition to America is a vivid example of the problematic nature of our extradition arrangements with the United States. https://t.co/HSrSAIcdHB

— David Davis MP (@DavidDavisMP) February 10, 2020

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And so the @USTransitionTax came to be … https://t.co/oG4BRfxphI pic.twitter.com/qhplJeLhuE

— U.S. Citizen Abroad (@USCitizenAbroad) February 5, 2020

The article referenced in the above tweet (although long) is worth the read.

It helps explain why:

– individuals who live in other countries are subsidizing tax reform for U.S. corporations

– U.S. corporations are not likely to pay much U.S. tax anytime soon

and more.