Liberty and justice for all United States persons abroad

The Isaac Brock Society

US tax policies delay $2bn Chinese loan

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From the Financial Times

US tax policies delay $2bn Chinese loan

By Henny Sender in Hong Kong, April Dembosky in San Francisco and Anjli Raval in New York

A loan worth nearly $2bn from China Development Bank to help fund an ambitious San Francisco housing project is being delayed as a result of Chinese concerns about the effect of tax policies in the US, a person familiar with the situation said.

The measures include the controversial Foreign Accounts Tax Compliance Act (FATCA), which comes into effect in 2014 and could force foreign banks to pay a 30 per cent withholding tax on the interest income on any loans made to US entities or persons.

“They need to clarify the implications of these regulations before they approve the loan,” said the person.

European banks shut Americans out over U.S. FATCA tax rules

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@CanuckDoc found this story and suggests that it should be given a separate post, as it is a mainstream story about Banks shutting out Americans Abroad.

The story was originally posted at USA Today and then picked up at ABC News.  It will be interesting to watch today to see if it starts showing up elsewhere.  It it ever gets discussed on Brian Williams NBC nightly news, so my 86 year old mother sees it, you will know the story finally came back to the homeland!  I don’t expect to hear or see it there, however.

 

SwissRespect Obtains Letter from Federal Concil Authorizing Disclosure of Bank Employee Names

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It seems that the letter only mentions exception to Art 271, Swiss Penal Code when it is in the best interests of the country, and does not excuse the banks from bank secrecy violations or civil lawsuits under the employment code.

http://www.rts.ch/info/suisse/4306925-l-autorisation-aux-banques-de-transmettre-des-noms-rendue-publique.html

http://www.swissrespect.ch/fr/communiques-de-presse.html

http://worldradio.ch/wrs/news/switzerland/emergency-injunction-stops-handover-of-credit-suis.shtml?32642

Rand Paul responds on FATCA

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Shadow Raider made the following comment:

Rand Paul responded to my email! Clearly this was not an automatic response and he is aware of the issue. Here is his response (my emphasis in bold):

September 26, 2012

Dear Mr. —,

Thank you for taking the time to contact me regarding the Foreign Account Tax Compliance Act (FATCA). I appreciate hearing your thoughts on this issue.

During the 111th Congress, Congress passed and President Obama signed into law, the Hiring Incentives to Restore Employment (HIRE) Act of 2010 (P.L. 111-147). This legislation drastically expanded government involvement in the financial goings-on of Americans who live and work abroad. FATCA, the tax evasion provision in this bill, requires all foreign financial institutions (FFI) to provide a detailed report on American account holders to the Internal Revenue Service (IRS) beginning in 2013, or be subjected to a 30 percent withholding tax on income from U.S. assets. American account holders with more than $50,000 who fail to file a report with the IRS would also be subject to a 30 percent withholding tax. As a newly elected member of the 112th Congress, I did not participate in the debate of this law and would have voted against it if I had been.

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The Lives of Others – The true significance of Bradley Birkenfeld

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Cross posted from RenounceUScitizenship.

What is  the relationship between a bank and a customer?

Although Bradley Birkenfeld never became famous as a banker. He was a banker.

In most cases banks do NOT owe a fiduciary relationship to their customers.   The duty owed by a banker  to a customer now  depends on the nature of the relationship. Some people are mere  customers or creditors of banks. Those  who have “private banking relationships” may be entitled to a higher standard of care. There are clear cases where a bank does owe a fiduciary duty to a client.  A recent article  in the Ottawa Law  Review suggests  that the nature of the relationship will  now be determined  by the specific facts.  When a bank is giving investment advice, the easier  it is to establish a fiduciary relationship.

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Apple Co-Founder Steve Wozniak to become Australian

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Another article on famous entrepreneurs switching citizenship!

The Apple co-founder has resided for some time in Australia has recently stated that he is applying for citizenship and intends to remain there permanently:

http://au.ibtimes.com/articles/387219/20120924/apple-co-founder-steve-wozniak-guns-aussie.htm#.UGHEFkI_OlM

The author of this article seems to think that he become the next big tech person to renounce US citizenship, which I would imagine would result in a huge media storm in about a year’s time should his name appear on a quarterly registrar.  What do you think? Is he trying to get ready for FATCA?

Readers who live in Australia – How has FATCA been impacting your daily life or banking activities up to this point in time?

FATCA and FBAR Reporting by Individuals: Enforcement Considerations from a Canadian Perspective, by Andrew Bonham

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I came across this and am now reading.  I am posting the “Conclusions” of “FATCA and FBAR Reporting by Individuals: Enforcement Considerations from a Canadian Perspective” by Andrew Bonham in the link below in case others are interested and haven’t yet come across this.

Canadian Tax Journal, Vol. 60, no. 2, 2012

CONCLUSIONS
Despite the increasing trend toward judicial comity, the revenue rule and the penal/public-law rule are still the law of the land. With respect to the enforcement of FBAR fines and penalties, since the BSA is not a taxing statute, the revenue rule would not apply, and ultimately any application or action brought by the United States for FBAR enforcement in a Canadian court would be barred by operation of the penal rule. A similar action brought for enforcement of FATCA claims would be barred by both rules.

This leaves the matter of the impact of the assistance-in-collection provisions of the Canada-US tax treaty. Again, since the BSA is not a taxing statute, FBAR collection claims would not fall under the provisions of the treaty. The issue of FATCA individual reporting claims is more problematic. Continue reading →