http://www.thatchannel.com 
Can't make "Live Toronto Event" to discuss end of @citizenshiptax https://t.co/pk6PVMNAKc? @Expatriationlaw interviews @SolomonYue LIVE: Friday Aug. 17 – 11:00 a.m. EST (Toronto) – VIEW it @thatchannel anywhere in the world! Tweet questions to @expatriationlaw in advance and RT! pic.twitter.com/bWFBBPv2Zz
— John Richardson – Counsellor for US persons abroad (@ExpatriationLaw) August 14, 2018
Posted in Accidental Americans, Canadian Government, Issues regarding US persons abroad, Tax Treaties, Transition Tax
14 Comments
Canada has raised the issue of the impact of the repatriation tax on Canadian residents with the U.S. government, says Finance Minister Bill Morneau https://t.co/1s3puNhyyI #cdnpoli #tax #repatriationtax #taxreform #politics
— Elizabeth Thompson (@LizT1) August 14, 2018
Following up from yesterday’s CBC article by Elizabeth Thompson, CBC has today published a shorter article describing Mr. Morneau’s response or non-response (whatever the case may be) to the “transition tax”. Her article begins:
The Canadian government is talking to the U.S. government about the impact a retroactive tax signed into law by U.S. President Donald Trump is having north of the border, Finance Minister Bill Morneau revealed Monday.
Speaking to reporters in Windsor, Ontario, Morneau said he is aware that some of the U.S. government’s tax changes affect Canadian residents with U.S. or dual citizenship.
It is, at the end of the day, going to be up to them to manage their own tax code.
– Finance Minister Bill Morneau
“We’re continuing to consult with Americans to make sure that we fully represent the challenges that these changes have made for Americans or dual citizens living in Canada,” Morneau said. “That’s an ongoing process. We certainly hope that we can make progress.”
Here is Mr. Morneau in the Q and A:
Finance Minister Morneau responds to questions about the effect of the @USTransitionTax on Canadian residents – he does acknowledge that this impacts those with @dualcitizenship https://t.co/QSETrawVqr
— U.S. Citizen Abroad (@USCitizenAbroad) August 14, 2018
The comments (at least so far) reflect the difficulty of understanding the issue.
Nevertheless, this is significant because it is now clear that the Trudeau Government is well aware of the “transition/repatriation tax” and its effect on Canadians. This is good news.
And across the ocean and and the question of legislative change …
The following message appeared from Lawyer Monte Silver:
Americans Abroad with small businesses subject to Repatriation/GILTI taxes:
To get an exemption for American small businesses abroad from the Repatriation tax, last month we focused on Senator Cassidy of Louisiana who volunteered to assist. It worked and we have a draft bill in hand.
Now we focus on Ohio Senator Portman for a bill exempting us from GILTI. Portman responded and wants to speak to Americans abroad impacted by GILTI. If you or someone you know owns a small business abroad and is impacted by GILTI – or the Repatriation tax, IT IS URGENT THAT YOU CONTACT ME BY PRIVATE MESSAGE OR AT MS@SILVERCOLAW.COM
Posted in Issues regarding US persons abroad, Non Resident Taxation, Tax Treaties, Transition Tax, TTFI
28 Comments
Canadian residents hit by Trump repatriation tax dealt a new blow https://t.co/67uLAfhGkh #cdnpoli #tax #TaxReform
— Elizabeth Thompson (@LizT1) August 13, 2018
Another good article by the Elizabeth Thompson. It would appear that compliance with the “transition tax” is getting more and more difficult. The article begins with:
Thousands of Canadian residents hit hard by a retroactive tax signed into law by U.S. President Donald Trump have been dealt another blow, CBC News has learned.
Newly proposed regulations issued by the U.S. Treasury Department and the Internal Revenue Service threaten to increase their tax hit.
“You have to almost empty out your company and pay a lot of Canadian tax to avoid the U.S. tax,” said Kevyn Nightingale, a partner with the accounting firm MNP.
Interestingly, Ms. Thompson does reference the Solomon Yue American Chamber of Commerce meeting this Thursday August 16 in Toronto.
The comments seem less vicious today (at least so far).
A LIGHT AT THE END OF THE TUNNEL OR ANOTHER ONCOMING TRAIN: THE POSSIBLE END OF U.S. CITIZENSHIP-BASED TAXATION
Solomon Yue, CEO of Republicans Overseas will present publicly shareable information about the TTFI bill, and discuss its progress as it journeys through the legislative process. He will be encouraging AmCham Canada to lend its support in the global effort to encourage Congress to move forward with this legislation. Joined by John Richardson and Elena Hanson
When: Thursday, Aug 16, 2018 – 18:15 to 21:00
Where: St. Michael’s College, Alumni Hall, Room 400; 121 St. Joseph Street,Toronto Ontario M5C 3C2, paid parking near building; nearest subway station is Museum)
Cost: $20 +tax. Pre-registration is required. Registrations due August 13.
If you have any questions about the event, please contact carmina@gathersome-events.com
AmCham Toronto TTFI Event
Continue reading
An excerpt from “Identity theft in a #FATCA and #CRS World: The Role Of the U.S. Social Security Number” cross-posted from citizenshipsolutions.ca
This morning I received a fascinating message from a third party who writes:
IDENTITY THEFT, SSN & CRS
With the creation of Social Security in the US after World War II, Americans were issued individual social security numbers for retirement contribution tracking and disbursement purposes. Over time, by convenience and not by design, these social security numbers morphed into national tax ID numbers and the only identification number used in all aspects of Americans’ lives — from getting a driver’s license, buying a car, enrolling in university, opening a bank account, buying health insurance and soon. The list is endless.
The IRS and the Social Security Administration regularly entreat Americans to be careful about to whom, why, and how they reveal their precious SSN. Indeed, identity theft is the fastest growing industry in the US and rarely a day goes by without yet another data breach making headline news (need a list??) or a warning of fake IRS forms (such as the W8-Ben) enticing people to provide private data never asked on those forms.
Europe, on the other hand, provides its nationals with distinct tax ID numbers. No single identifying number can provide access to and take control of all aspects of an individual’s life.
In comes FATCA and CRS.
And what does the IRS and USG compel us to do? Fork over our SSN to FFIs and foreign governments — and their myriad service providers, data bases and servers.
Aside from this requirement’s dubious legality under GDPR, having to fork over one’s SSN is akin to leaving your front door open with a big “Welcome” sign while you go off on holiday.
Americans get to choose between the risk of privacy violations and identity theft and the ability to bank. If they can find a bank that accepts them that is — not one online European bank will accept a client with the slightest whiff of “American-ness”, even if said client is a dual national. Discrimination anyone?
It’s not as if there were no other options and the USG had no CHOICE but to put its citizens at risk. The IRS could issue TIN numbers separate from SSN. Americans abroad could prove their identity with a passport number and show their compliance with redacted FBARs and 8938s. Most FFIs in Europe are not even aware that our SSN is the unique number that controls our lives and understand the Solomon’s dilemma once it is explained to them. Yet they cannot do anything about it, they too are victims of the IRS’ extra-territorial reach.
While we wait for various efforts to reform or repeal FATCA to bear fruit, solving this dangerous conundrum should be simple and SSN numbers must no longer be used.
Conclusion
The U.S. tax compliance industry regards FATCA as “The Gift That Keeps On Giving!”
For Americans Abroad, FATCA is “The Nightmare That Just Keeps Happening!
cross-posted from citizenshipsolutions.ca
Part F – A “U.S. citizen” cannot use a “tax treaty tie breaker” to break U.S. “tax residence”. How then does a “U.S. citizen” cease to be a “U.S. tax resident”?
Q. I am a U.S. citizen. I do not live in the United States. I live in Canada. I am a Canadian citizen. How do I stop being subject to the all of the FBAR and other reporting rules, tax rules (including PFIC), life restrictions and inability to effectively invest and plan for retirement imposed by the Internal Revenue Code?
A. You relinquish U.S. citizenship. Please note that a “renunciation” is one form of “relinquishment”. In general, the date of relinquishment of U.S. citizenship is more important than the form of relinquishment of U.S. citizenship. A Certificate of Loss of Nationality (“CLN”) may or may not (depending on the date of relinquishment) be necessary to cease to be subject to U.S. taxation.
Q. In simple terms, where do I get information about the process of renouncing U.S. citizenship?
Continue reading
cross-posted from citizenshipsolutions.ca
Part D – Different definitions of “tax residence” – Not all countries define “tax residence” in the same way
Q. What is the criteria that different countries use to define who is a “tax resident” of the country?
A. The circumstances that constitute “tax residence” will differ from country to country. Generally speaking “tax residence” is based on definitions of (1) “residency” (deemed and actual), (2) “domicile” and (3) (in the case of the United States and Eritrea) “citizenship”. Note that different countries may define “tax residency” differently.
Q. How can I learn the definition of “tax resident” for the OECD countries?
A. In an earlier post about “OECD tax residency” I referenced the following chart which summarizes the definitions of “tax residency” in OECD countries. (I suggest that you use these definitions as a “start” to your research and not as the “last word”.)
Q. What is the significance of the “OECD” and why does “OECD tax residency” matter?
Continue reading
cross-posted from citizenshipsolutions.ca
Part B – The Combined FATCA/CRS Letter
This letter is particularly worrisome for Canadian residents (whether Canadian citizens or not) who were either born in the United States or are (otherwise) U.S. citizens or U.S. permanent residents (AKA Green Card Holders). Could this mean that they would be required to apply for a U.S. Social Security number?
What follows is a sample letter…
Dear Valued Customer:
We appreciate our relationship with you and we are committed to informing you about matters that affect you. We are writing today to inform you that changes have been made to the Canadian Income Tax Act (Part XVIII and Part XXIX), requiring TD to provide information about customers who have a tax residence in other countries to the Canada Revenue Agency (CRA). The CRA may then share information with other countries through existing provisions and safeguards under the Tax Convention.
To comply with this legislation, we have reviewed our records (eg. address) in order to identify customers who may be residents of other countries for tax purposes.”
Part C – “Tax Residency 101”: It’s about where you should be paying your taxes
In a #FATCA and #CRS world – the most interesting thing about a person is where has @taxresidency ESPECIALLY when he has > one. @Expatriationlaw interview with CPA @1040Abroad: ‘Episode 1 of: "A Tax Residency Primer"- Tax, Residency and #TaxResidency" https://t.co/6swfQmJO7i
— John Richardson – Counsellor for US persons abroad (@ExpatriationLaw) August 8, 2018
Some Question and Answer …
Continue reading
cross-posted from citizenshipsolutions.ca
So, you have received bank letter asking about your tax residence for CRS or FATCA – A @taxresidency primer
Introduction – So, what’s this “tax residence” stuff about? What does “tax residence” mean?
During the #InvestmentMigrationForum 2018, @ExpatriationLaw discussed multiple #Tax residencies, tax treaties and tax treaty tier breakers in #CRS and #FACTA world. pic.twitter.com/Y3hJ1PlJBz
— IMC (@IMCouncil) August 2, 2018
In 2014, as people started to receive “FATCA letters” I wrote a lengthy post describing “What to do if you receive a FATCA letter“. Information exchange under the Common Reporting Standard “CRS” has begun in 2018. As a result, I am writing this post which is to explain what the CRS is and how it relates to the FATCA letter. It is important to understand that the “CRS letter is actually a combined “CRS/FATCA” letter which is more likely to be received than the original FATCA letter. I urge that those who have received a letter of this type to read this post PRIOR to seeking professional advice!!!
The #OECD Common Reporting Standard combined with @FATCA is forcing people to reveal where they have @taxresidency: "Thousands of bank accounts closed due to foreign information sharing law" https://t.co/aOLhsYFzd0
— John Richardson – Counsellor for US persons abroad (@ExpatriationLaw) July 29, 2018
Back in June we were asked to do a post on the formation of several new Accidental American groups. There seemed to be some confusion as to whether these were “real” groups or just new attempts. Today, while doing something completely different, I came across the UK group and want to make sure this is posted so as many in the UK as possible, will become aware of the work they are doing there.
The FaceBook Page is here. Please check out the Page and “like” it as well as inviting other friends to do the same.
The FaceBook Group is here. This is a closed group. You must ask to join and answer two questions first.
Further, this article was posted on our Media and Blog Articles Open for Comment page but I only noticed one comment. I want to make sure it is seen on a larger scale. There were also some other similar articles:
“Accidental Americans” must be protected from draconian US tax system
Labour MEPs: Time to give accidental Americans their independence from US tax authorities
And last but not least, our colleague Fabien Lehagre has once again managed to get media and government attention on the plight of French Accidentals Macron Backs Accidental Americans . Truly outstanding effort and results – great stuff Fabien!
If anyone knows anything further concerning the new Accidental American groups in Ireland Italy or Poland could you please update us with a comment or ask one of our admins to do it for you? Thanks.
