The October 12 print edition of the prestigious international and widely-read weekly UK journal, The Economist, has this article about FATCA, also on this web link
Good and balanced article. So much for the Treasury’s Stack of Lies. It will be impossible for the US to ignore this one.
Happy (Canadian) Thanksgiving, everyone! (Not you, Stack and Obama …)
I don’t see anything yet posted here on Lynne and Victoria’s latest published works so I’ll take the opportunity to pass it along so it can be quoted elsewhere, From Tax-News, Global Tax News: Lynne Swanson and Victoria Ferauge and their “FATCA Reality Check”.
Thanks once again, Victoria and Lynne.
I sent this to Contact Tax-News.com ( enquiries@tax-news.com ):
I cannot find any way to add comments, but I can’t let go by my responsibility to thank you for publishing: FATCA Reality Check, contributed by Lynne Swanson and Victoria Ferauge, October 09, 2013.
This is such an important issue. There needs to be a voice for the approximately 7 million US Persons Abroad as they do not have the numbers, the organization or the money behind them that the FATCA compliance industry does, ramped up to help steamroll people who are absolutely not criminals in its quest to find US tax evaders.
None of us (most of whom are regular middle-class residents and citizens of other countries and who pay our full taxes to the countries that give us our benefits – with Residence-Based Taxation) are against the purpose of FATCA. We are appalled that the US hangs onto Citizenship-Based Taxation, their cash cow reaping reward with outrageous penalties, not actual taxes owed to the US. That the US will not change to Residence-Based Taxation as that of the rest of the world (save Eritrea and the US) tells the US immoral story of FATCA. The tax evaders the US is looking for actually reside within the borders of the US and send their untaxed funds offshore. It is not rocket science to understand this.
Thank you for publishing “FATCA Reality Check” by Lynne Swanson and Victoria Ferauge and providing their voice for US Persons Abroad, many of whom do not yet know how they will be affected; i.e. “It can’t possibly affect me; I am not a tax evader.” Education and advocacy for these people is so needed. Thank you for doing your part.
Regards,
“calgary411″
Calgary, Alberta, Canada
New Corporate Tax Shelter: Merger Abroad http://t.co/0Xx3CcWfZ9 – Corporate renunciation of US citizenship – Remove #IRS value discount
— U.S. Citizen Abroad (@USCitizenAbroad) October 10, 2013
If you haven’t seen the article referenced in the above tweet, you should read it and perhaps comment. There is clearly an “IRS Discount” associated with any U.S. person or entity. They just aren’t worth as much as other people. Sad but true.
The Readers Digest version is:
Corporations are simply merging with non-U.S. companies to end “US person” status. Too bad individuals can’t marry non-U.S. citizens and end their status of U.S. citizenship. This is a fascinating article.
The Holy Grail objective is described as follows:
Recently completed FBAR cases should cause a chill dread upon all who cherish freedom. Here is why: The United States has a Bill of Rights the intent of which is to limit the threat of the United States Federal government. However, the Bill of Rights has become a dead letter as result of the practice of plea bargaining which essentially wipes out the rights of the individual. Three recent FBAR cases illustrate this nicely:
This post appeared on the RenounceUScitizenship blog.
Uncle Sam & #FATCA! http://t.co/viiXssNtod – Everybody and everything is now subject to US tax – Make the world pay for "Homelanders"
— U.S. Citizen Abroad (@USCitizenAbroad) October 8, 2013
Cat is coming out of bag, the can of worms is open, and all sorts of people are waking up when they get FATCAed. http://t.co/1TyYrsdtfS
— U.S. Citizen Abroad (@USCitizenAbroad) October 9, 2013
I came across the article referenced in the above tweet. It is a truly incredible story. You are strongly encouraged to read this article. This guy is just trying to “mind his own business” (no pun intended). All of a sudden he learns that he might somehow be subject to U.S. jurisdiction. He has no idea why or how and he can’t get good answers. It’s obvious that his only solution is to sever every possible tie to the U.S. and to any U.S. person.
It’s been months since I’ve seen any availability for Vancouver appointments. Thanks to Cyal8rUS, who posted the following comment on the “About the Isaac Brock Society” page.
“If someone with authorship privileges would be able to blog this: The Vancouver US Consulate FINALLY has new appointments available for “other” ACS services. If you have been trying to book a renunciation appointment, get there quickly. …”
The Vancouver website says; “If you would like to make an appointment to renounce or relinquish your U.S. citizenship, please email VancouverCLN@state.gov ” So, I e-mailed that address a few minutes ago and got an immediate automated reply (very comprehensive with detailed instructions). Of particular interest is this paragraph [emphasis added]:
“IMPORTANT NOTE REGARDING APPOINTMENTS
If you arrive fully prepared for your appointment, we will likely
process your loss of nationality in one interview. If you do not have
the forms filled out or if you do not have all required original
evidence, you will need to return for a second appointment.”
So: (1) only one visit is required, (2) you must book through Vancouver.CLN@state.gov (not through the online calendar).
Full text of the e-mail after the arrow.
http://www.compasscayman.com/caycompass/2013/10/08/FATCA-seminar-hears-of-stiff-penalties/
Acknowledging the welter of detail and difficulties in the law, part of 2010’s Hiring Incentives to Restore Employment Act, Mr. Cantor said the only people that like FATCA are lawyers and accountants.
“From the perspective of a U.S. international tax attorney, we love FATCA for four reasons: complexity; uncertainty, with all the changes since 2010; change, with all the amendments and reforms to the law; and fear-mongering,” Mr. Cantor said.
“One man told me it was the end of Western civilization as we know it,” Mr. Cantor said, explaining that “No, FATCA is aimed at foreign financial institutions and other financial intermediaries to prevent tax evasion by U.S. citizens and residents through use of offshore accounts.”
Audible despair gripped the hundreds of audience members when Mr. Cantor described eight IRS and Treasury Department forms required by the agency, followed by another five that might be needed.
Penalties are stiff for not filing, he said. For example, falsifying or failing to submit Treasury Department Form 90-22.1 could draw a $500,000 fine and up to 10 years for in prison. Tax evasion, he said, is liable to a $250,000 fine and up to five years. Failing to file a tax return attracted a $100,000 fine and up to one year imprisonment.
Following the presentation, Mr. Cantor, alongside Mr. McTaggart and KPMG partner and “head of tax” Doug Harrell, heard an hour of eager audience questions, most related to complex personal circumstances.
Mr. Cantor told one interlocutor that renouncing U.S. citizenship is unlikely to be effective: “First, you have to have another passport before you can do that. You cannot be stateless.”
An “exit tax” would also apply, he said, describing a law that “started when a certain resident here [Cayman] came from Belize.” Someone seeking to expatriate themselves, he said, could be forced to sell their assets, relinquish any trusts and pay state taxes.
“Until the State Department gives you a certificate [of expatriation], you cannot relinquish your passport, not until all your taxes are paid.”
A comment from Tim included:
I know some of you don’t want to hear it but I personally think we should back off the NDP for know. I am very confident at the end of the day they will be on our side as will the Greens. As difficult as it might seem lets take a breather on this front. Instead we should be turning our fire toward the Canadian Bankers Association and Maura Drew-Lytle and try to smoke out in the next month or two whether they have any pull to force Mulcair to switch stances on FATCA.
How the world has changed. This article will “rock your assumptions” of the flow of international adoptions.
Revising transnational #adoption tropes – US birth mothers seek to place babies overseas (remarkable story, via CNN) http://t.co/oUUqMZkECM
— Peter Spiro (@AfterTheState) October 7, 2013
Dear
You can see Tom Mulcair took the question asked at the forum and your letter seriously, and acted with dispatch. Murray Rankin, as Hoang Mai’s successor, was of course already working on this issue, so, as Tom’s letter notes, it made sense to reiterate the NDP’s deep concern in Murray Rankin’s September 25 letter in his role as National Revenue Critic. You may not be aware but Murray Rankin is a renowned and experienced constitutional litigator, and in an excellent position to be taking onboard the questions of applicability of the Charter of Rights along with our Justice Critic. I will remain available to assist Murray in his analysis, but I am confident one could not have a more qualified Official Opposition Revenue Critic to be in charge of this file.
All best,
Craig
