U.S. Dept. of Justice (DoJ) loves plea deals, hates juries:

Since September 2011, federal prosecutors have taken only four FCPA [Foreign Corrupt Practices Act] cases to trial. All of them ended in “debacles for the government.”

But since DoJ knows that bully swagger almost always gets the desired results, it remains committed to cloaking its thuggery in due process:

FCPA cases, by their very nature, often require proof of criminal acts carried out in foreign countries. While obtaining foreign evidence—documents and witnesses—poses particular challenges in FCPA cases, the department remains committed to working with its domestic and foreign law enforcement partners to continue to bring successful prosecutions against the individuals who bribe foreign officials and the companies they work for.

Four in-court fails in four years means keep on with “successful prosecutions”? Shouldn’t the phrase be “successful intimidations”?

http://www.bloomberg.com/news/articles/2015-07-23/u-s-prosecutors-keep-losing-trials-in-overseas-corruption-cases
 

Reposted from ADCS-ADSC blog

The end of the beginning …

Time flies. It seems like just yesterday that your FATCA lawsuit was filed. Well, it’ been a year. It’s been a busy year. A “busy year” always seems like “just yesterday”. I am spending next week in Vancouver. The obvious reason is that I want to watch the opening round of your lawsuit. Win, lose or draw, please understand that this is going to be a long process.

Tis the season …

It’s election season. It’s widely believed that Prime Minister Harper will “call the election” this weekend. An election affords an excellent opportunity to discuss “all things Harper”. Of course to discuss “all things Harper” might include discussing “all things FATCA”.

Democracy is NOT a spectator sport – I have a suggestion for you …

Consider running as a candidate in the upcoming election. You can run as an “Independent Candidate” (a concept that has always been dear to my heart). You could also run as a “small party candidate”. Both the Green Party and the Progressive Canadian parties have voiced opposition to FATCA. If you are interested in running (I am quite serious) shoot me an email, I will explain how to do this. It’s very simple. You will have fun. You can make “FATCA” part of the overall debate about the Harper Government.

FATCA lawsuit – round 1 …

The summary trial on August 4, 5 will be based on “affidavit evidence”. What this means is that the evidence is presented to the presiding judge in the “form” (no pun intended) of written statements. If the evidence were offered  through a “live witness” the witness would/could be “cross examined”. The same thing is true for “affidavit evidence”. I found it quite interesting to read the Government’s “cross examination” of your witnesses (Professor Christians and Mr. Wood). The cross examinations reveal both good news and bad news:

First the Good News …

I have the distinct impression that the Government lawyers do NOT understand what FATCA, the IGA, CBT, etc. are about.

Second the Bad News …

I have the distinct impression that the Government lawyers do NOT understand what FATCA, the IGA, CBT, etc. are about.

When the good news and the bad news are the same …

Yes, the “Good News” and the “Bad News” are exactly the same. It’s hard to understand and explain the technicalities of these issues. What is a “poor lone judge” to do? I am completely confident that our lawyers are vastly superior to the Government lawyers. Yet, the question is whether the judge will understand the issue(s). We will see …

Remember that win or lose this is going to be appealed. The “FATCA Chronicles” are heading to the Supreme Court of Canada where the issue will be decided by nine judges.

Continue reading →

This just in from Democrats Abroad, whose front office remains so stunningly oblivious to the number one issue and existential threat to its constituency that it completely ignored it in today’s missive:

Dear [random person on our mailing list],

I hope you agree with me that there has been a lot to celebrate over the last few weeks. The Supreme Court upheld Obamacare and preserved health insurance for millions of Americans. Thanks to the Supreme Court again, this year we were able to celebrate the first Fourth of July in which all Americans truly were equal and free to marry the person of their choice. And we can now celebrate the possibility of an Iran without nuclear weapons.

While there are many things that we cannot yet celebrate, let’s take a moment to celebrate the 54th birthday (on Tuesday) of the man who has made many of our celebrations possible: President Obama. He has worked tirelessly to make America a better country and the world a safer place. He fought for the right of every American to have affordable health care. He appointed two superb Supreme Court Justices who have upheld the fundamental rights of all Americans. And he has worked for peace, not war, around the world.

Let’s send him a gift that he – and we – will appreciate – victory in the 2016 elections. A 2016 election victory that will keep a Democrat in the White House and take back Congress – that will preserve and extend President Obama’s legacy – and keep the Supreme Court from moving further to the right.

You can send that gift by contributing $54 – or whatever you can to Democrats Abroad and help us turn out overseas voters in the 2016 elections. There are now an estimated 8 million Americans living abroad – more than ever before. We have made the difference in the past between defeat and victory – and we will do so again in the crucial upcoming 2016 elections.

But we need your help – so please donate today and click the dropdown menu for “President Obama’s 54th”. That way we can both keep on celebrating.

Democratically yours,

Katie Solon
International Chair
Democrats Abroad

This message is paid for by the Democratic Party Committee Abroad
Democrats Abroad

PO Box 15130
Washington, DC 20003
United States
Telephone: +1-202-621-2085 +1-202-621-2085

After being so thoroughly and regularly betrayed and insulted by your own overseas organization’s breathtakingly tone-deaf leadership, I have two completely genuine suggestions for Democrats Abroad members who still truly respect democracy and who actually want to remain abroad:

1. Take that $54 you were going to send to DA and instead donate it to the American-based FATCA Legal Action Fund. By contributing directly to legal challenges demonstrating FATCA’s unconstitutionality, you will be making a far better investment in your own future, and that of your children and grandchildren, than by celebrating the birthday of a President and supporting a party whose FATCA campaign against you and your family has turned your lives into a living hell.

2. While you’re at it, why not demonstrate some more of that old-time Democratic compassion and progressive support for civil and human rights everywhere by also donating to the Canadian-based ADCS FATCA legal challenge, which seeks redress under Canada’s Charter of Rights and Freedoms from the Canadian federal government’s capitulation to those same FATCA laws you already know and loathe so well. Since $54 USD is now equivalent to 70-something Canadian dollars, and since our just-announced Canadian federal election is expected to last a record-breaking 78 days, I would suggest that $78 CDN would be an entirely appropriate amount to start with to help support your Canadian brothers and sisters, especially if you’re a member of one of DA’s Canadian chapters.

So, instead of pointlessly counting birthday candles today, why not count human lives affected by FATCA, and do something positive about it? Your soul might just thank you – and don’t forget about those kids either.

Reposted with permission of the author
Originally posted on Tax Connections Blog

Fighting FATCA “Tyranny” in U.S. Court
 
Born and raised in Communist China, naturalized American citizen Solomon Yue says he understands why people leave a country because of tyranny.

That’s exactly why Yue “can’t watch people abandoning (U.S.) citizenship because of FATCA tyranny.”

So, the Vice Chairman and CEO of Republicans Overseas Action spearheaded a constitutional challenge to Foreign Account Tax Compliance Act (FATCA), Intergovernmental Agreements (IGAs) and Foreign Bank Account Reports (FBARs).

Although Yue lives in Oregon, he was alarmed and troubled by soaring number of Americans living outside the United States relinquishing or renouncing American citizenship to maintain banking and financial accounts where they live, work and are often citizens.

Yue says FATCA, IGAs and FBARs strip 8.7 million Americans around the globe of their constitutional rights. “Stop making overseas Americans second class citizens by taking away their constitutional rights,” asserts Yue.

“This lawsuit’s aim is to restore those overseas Americans’ and “Green Card” holders’ full citizenship through legal action on constitutional grounds all the way to the U.S. Supreme Court,” Yue says.

“Financial Surveillance of Unprecedented Scope”

On July 14, Republican Overseas Action filed a lawsuit in U.S. District Court on behalf of seven plaintiffs from Albania, Canada, Czech Republic, Israel, Switzerland, and United States claiming eight counts of constitutional violations, including violations of Fourth, Fifth and Eighth Amendments.

The lawsuit says “FATCA was intended to address tax evasion by U.S. taxpayers who fail to report foreign assets located outside of the United States. But in practice it is a sweeping financial surveillance program of unprecedented scope that allows the Internal Revenue Service (“IRS”) to peer into the financial affairs of any U.S. citizen with a foreign bank account. At its core, FATCA is a bulk data collection program requiring foreign financial institutions to report to the IRS detailed information about the accounts of U.S. citizens living abroad, including their account balances and account transactions.”

The lawsuit also highlights some of the real challenges of FATCA for Americans living abroad. “On the most fundamental level, FATCA deprives individuals of the right to the privacy of their financial affairs. FATCA authorizes the IRS to collect information on the financial assets of U.S. citizens living abroad that it cannot collect on U.S. citizens domestically. On a practical level, FATCA is severely impinging on the ability of U.S. citizens to live and work abroad. It is affecting all facets of individuals’ lives from day-to-day finances and employment to family relations and citizenship.”

Fighting Back

“I once got trapped in an enemy minefield with no good choices — getting hit with FATCA felt a bit like that,” U.S. military veteran Major Roger Johnson told the Washington Times. So, after fighting for the U.S., Johnson is now battling the American government for his own liberties and rights.

Johnson, who has lived in the Czech Republic with his Czech wife for 21 years, is one of seven American and former Americans who have not met each other who have united as plaintiffs in the lawsuit to fight back against the intrusion of the United States government into honest, law-abiding lives outside U.S. borders.

Other plaintiffs are a lawyer in Israel, a professor of psychiatry and pharmacology in Canada, an owner of a securities brokerage firm in Albania, an information technology worker and U.S. military veteran in Switzerland, an author in Switzerland and U.S. Senator Rand Paul. All except Senator Paul have experienced serious issues relating to normal banking and financial services in the countries where they live, work, earn incomes and pay taxes. They have lived for years or decades in their respective countries and most are citizens of those countries. The two Swiss plaintiffs took the extreme step of renouncing U.S. citizenship to be able to maintain normal banking and financial lives.

“This lawsuit will not only enable Republicans Overseas to defend all overseas Americans and stateside Green Card Holders right to privacy and other constitutional protections, but also provide them immediate injunctive relief by crippling the Treasury’s ability to enforce IGAs and IRS/FCEN FATCA enforcement capability,” says James Bopp, Jr., the lawsuit’s lead lawyer.

Americans around the world are watching.

SOLVING U.S. CITIZENSHIP PROBLEMS
INFORMATION SESSIONS
 
VANCOUVER Wednesday, August 5, 2015

6:00 – 8:00 pm – $20.00

1010 Richards Street (corner of Richards & Nelson)

Vancouver BC V6B 3E4 MAP

Please enter via the rear of the building.

What individuals are U.S. taxpayers? Who is a U.S. citizen?

I have never heard of these requirements! What determines the income that must be reported to the IRS?

I am only a snowbird! Why does this affect me?

What costs are involved in renouncing U.S. citizenship?

WHO: John Richardson, B.A., L.L.B., J.D., is a Toronto lawyer and a member of the Ontario Bar.
Citizenshipsolutions.ca

Hope to see you, your families and friends! Spread the word!

Information presented is NOT intended or offered as legal or accounting advice specific to your situation.
 

NEXT INFORMATION SESSION:
Toronto,
Sunday, August 30, 2015
1:00 – 3:00 p.m.

Goat Rodeo:
A chaotic situation, often one that involves several people [or organizations], each with a different agenda/vision/perception of what’s going on; a situation that is very difficult, despite energy and efforts, to instill any sense or order into.

I don’t think there’s a much more apt expression for what is happening right now in the larger FATCA / FBAR / CBT universe. The calm-before-the-storm waiting game of the last few years is now clearly giving way to frenzied activity and veritable verbal warfare across multiple organizations and web sites around the globe. The big-picture dots of this reality have not yet been fully connected into a single post and thread, so that’s why I’m starting this one.

In no particular order, here are some of the latest developments to consider:

1. The ADCS summary trial is poised to begin next Tuesday, August 4th. Even now, the Canadian Government is wheeling out their propaganda machine to fight our lawsuit in the court of public opinion as well as in the Federal Court in Vancouver. One of the first targets of their inevitable smear campaign is our legal counsel, Joe Arvay, via a Conservative Party soapbox piece published in today’s Globe and Mail. And, as I write this, news that the Canadian federal government, “…may seek an adjournment of the summary trial scheduled to be heard on August 4-5,” as reported in the ADCS thread.

2. Mirroring the Canadian Charter Challenge is last week’s filing of the James Bopp / Republicans Overseas Action FATCA lawsuit whose seven plaintiffs include Rand Paul and Stephen Kish.

3. Republicans Overseas reports on the US Federal government response to their motion to expedite a Preliminary Injunction:

On July 22, Republicans Overseas Action and the seven Plaintiffs asked the District Court to expedite the consideration of the request for a preliminary injunction to give the Court adequate time decide the matter before some of Plaintiffs’ sensitive account information is reported to the IRS at the end of September. The government’s response is to say that shortening its response time would be too burdensome and that it needs even more time to respond. Normally, they would have 21 days to respond, and we’ve only asked to have that time shortened by a week. The federal government instead has asked the Court to delay the suit and give them 60 days to respond to Plaintiffs’ request for a preliminary injunction—three times the amount of time to which it would normally be entitled! The truth is that the Plaintiffs are the ones playing catch up in this case. The government has had nearly five years to consider the constitutional underpinnings of FATCA. They should not be allowed to complain now that they need more time to understand it when American citizens’ constitutional rights are being pushed aside.

4. Democrats Abroad has published a couple of trash-talk pieces here and here condemning the Bopp/RO suit. So far, every one of the 22 comments on the DA Switzerland piece has been uniformly opposed to DA’s positions on FATCA and Same Country Safe Harbor (SCSH), which has also been referred to as SCE (Same Country Exception).

5. Democrats Abroad has doubled-down on its SCSH campaign by re-igniting its FATCA Reform 1000 letters sign-on campaign, apparently completely ignoring the frustration of its dwindling constituency, as exemplified by one of the comments:

Most of us will not support this. Same country exemption is a diversion from the issue. It will enable you to try and tell people that you have done something. 90% of us see right through this and want nothing to do with this. Full repeal of FATCA and CBT is what needs to be done. Anything else is a distraction. Time for the democrats to join the rest of the world and use the world standard tax practice of residence based taxation (RBT). Why does the party of “progress” want to hold onto an outdated, civil war era tax policy that all other countries have abandoned?

6. Republicans Overseas is also pushing back on SCSH and the letter writing campaign:

By delaying the Motion for Preliminary Injunction, it gives DA time to push for the Same Country Safe Harbor (SCSH) exemption

DA is asking expats to write 1,000 letter to Congress to support SCSH by pressuring Treasury Secretary Lacob Lew and IRS Commissioner John Koskinen to selectively enforce FATCA based on expats’ accounts in one foreign country or more than one foreign country. DA knows better than that. This is lawlessness because neither Secretary Lew nor Commissioner Koskinen have the constitutional authority to amend or selectively enforce FATCA without a vote in Congress to amend the law.

7. Meanwhile, other organizations have apparently chosen to hitch their wagons to the increasingly-maligned Safe Harbor campaign, including FAWCO (Federation of American Women’s Clubs Overseas) and AARO (Association of Americans Resident Overseas), though the latter has posted a position paper calling for the replacement of CBT with RBT. American Citizens Abroad has remained rather low-key, focussing on its own, rather convoluted RBT proposal and partnering with the University of Nevada via its ACA Global Foundation on a research study about the effects of FATCA on American citizens living abroad. Other groups, such as American Expatriates, appear to be inundated by a confusing and often contradictory array of opinions from across the political spectrum, though the same thing can often be said of IBS.

8. The Trump factor. Will his brand of demagoguery help or hurt our cause? Here is a quote from his most recent advertorial for his own book:

America has become the world’s “dumping ground” for everyone else’s problems. A “whipping boy” for other countries as we sink further and further into the debt of no return.

Trump warns of so-called leaders willingly giving our jobs to foreign hands and further crippling the economy. Literally taking future opportunities from our children and grandchildren.

Meanwhile those same leaders feed America’s looming debt beast — an $18 trillion tab — with foreign aid and terrible negotiations.

And what then do we get for extending our wealth to help a legion of other countries? Lack of respect. We’re the “laughingstock” of the world.

These are just a few examples of how fragmented and confusing the landscape has become, and just how far away US Persons are from achieving any kind of consensus about how best to fight back against FATCA and CBT. The dominant “camps” now emerging are, predictably, identifiable largely along traditional party lines, but with some important exceptions. On one hand, “Safe Harbor” has crystallized into the Democrats singular take-it-or-leave-it proposition. On the other hand are the lawsuits in both the US and Canada, initiated by an increasingly diverse mix of Republicans, disaffected Democrats and untold numbers of other supporters who have no allegiance to any US party. In the case of Canada, our battle is dishearteningly with our own Canadian government, which has lowered itself to becoming a mere proxy for the US. Nevertheless, when it comes to the issues of FATCA, FBAR and CBT, it would appear that the most dominant fault line now starkly divides an increasingly out-of-touch and disingenuous Democratic Party with, literally, everyone else on the planet.

Same Country Exception. A letter writing campaign “exempting” one from FATCA reporting has now been kicked off. If one can show that one is tax compliant, one won’t be reported. In this case, one needs only to send a different piece of paper to the IRS that declares that one is same-country exempted. Sounds Good. Is it?

We’ll look at the details. But first, let’s look at something that came along, albeit at a much slower pace–the Social Security number. Since it’s not the prime point, I won’t claim to have researched its history fully, let’s just talk about it from my own memory. And, remember that the course of history need not be planned in advance. However, it can be expected to morph itself to a known end.

Social Security came about as a forced savings system for one’s retirement. The payments after retirement were well publicized, and the incoming payments were accepted by legislation in the houses. In order to keep track of the payments, identification was required for the first time in America. Lots of people complained, that identification was not part of the American ideal. It was a huge transition, for which we dismiss today as “conspiracy theories”. Many of us have a Social Security card which is overlayed with “not to be used for identification purposes”. This didn’t last very long. In fact, long before my first card was printed, the Social Security number was indeed used on tax forms and not just on Social Security.

During the early 80’s, judicial and legislation determined that no one could require you to supply your social security number to them (loans, credit cards, universities, whatever)–however, those institutions need not issue you their services if you don’t cough up your number. The Social Security number has morphed into most everything. In Europe, the government number is used everywhere. Anyone can require that you hand it over. In many countries, the birthdate is ingrained in the number. You have to cough it up for almost anything, including discount cards at the store.

Trying to keep it short, the Social Security number morphed from something with a real need into something used everywhere. Now, with FATCA, globally. Remember that something starts and with or without fore-planning, it morphs into mainstream.

Now, we are being offered Same Country Exemption. Safe Harbor (another Orwellian name which has a background in other areas). You have a safe harbor, if you prove to your bank (by attaching your 1040 IRS document) that you are US-tax compliant. (An individual residing in a foreign country could elect, but would not have to elect, to have an account treated as a “Same Country” Account by providing an election to the relevant FFI (such as, the individual’s bank) and attaching a copy to his or her regular Form 1040 or Form 1040NR. The FFI would then be relieved from the requirement to treat the account in question as a US account and to process and report information with respect to it.)When you do this, your bank will not FATCA report you. You will also then be allowed to not file your form 8938. It does not mention that you would still be required to file your FBAR.

Let’s begin with why this might be a benefit. If you’ve already crossed all your T’s and dotted your i’s, why would you care if you were being reported? If you are filing a paper with the statement that you are only same country, what is the difference between that and just sending in the firetrucking 8938?

Q: Does Same Country Exemption eliminate the FBAR? A: No. Q: Does it eliminate the penalties? A: No. So, now we’ve reached the point of “who cares” and Safe Harbor. But it gets worse.

If you want to take advantage of Same Country Exemption, you need to SEND YOUR PRIVATE AND PERSONAL TAX FORMS TO YOUR LOCAL BANK. Your bank will then make a determination of whether your IRS 1040 is good, bad, or needs to be whistleblown. This would be the first instance where a 1040 tax return might be reviewed by an external source. (Go back to the Social Security example).

Do you want this? But, Safe Harbor is voluntary. When you write to your Congressperson, you support that you can voluntarily submit your private and personal 1040 form to an institution. When your Congressperson reads your letter, he sees that you support voluntary submittal of your personal 1040 form to an institution. He reads thousands of letters of persons who support voluntary submittals of 1040 forms to their institutions.

What does your legislator learn from this? He learns that thousands of persons support the idea of submitting their private and personal 1040 forms to their institution. People will gladly show their private information to an institution. WELL, IF SO MANY THOUSANDS OF PERSONS WOULD VOLUNTARILY SUBMIT THEIR PRIVATE TAX FORMS TO A 3RD PARTY, THEN THOSE SAME PERSONS WOULD NEVER COMPLAIN THAT THEY WOULD BE FORCED TO SHOW THEIR PRIVATE TAX INFORMATION TO A THIRD PARTY. And if they don’t they wouldn’t mind being banned from using that institution.

Do you really want your bank to judge your 1040? Why not your grocer? Why not your gardener? Why not bring your 1040 to the singles bar and paste it to your forehead? Why not send a copy of your 1040 along with your passport application (oops, it looks like that already might be required according to the transportation bill).

So, hurry up and write a letter to your Congresscritter and tell them that you support Same Country Exemption. At the same time, ask them to inform all of the bank employees to close their eyes while they strip search you in the bank lobby.

Addition:

BE CAREFUL WHAT YOU ASK FOR. And be careful about what others are asking for– remember that a few hundred people will be supporting DA/ACA/AARO/FAWCO SCE as-is. That proposal could affect you.

By all means, write the letters. Be specific about what is needed. Be specific if something is not objectionable and what is definitely objectable. Make sure that you discuss your opinion about the specific issue of giving your bank your personal tax records, in both cases of mandatory or non mandatory.

Noted: (The “Same Country” Exemption, sometimes referred to as “Safe Harbor” Rule, is the product of collaborative work among several groups representing Americans abroad. A detailed description was prepared by ACA and draws upon ideas and work of the other groups – which ACA greatly acknowledges. ACA is solely responsible for its content. This paper (attached) was drafted by Charles M. Bruce, Legal Counsel, ACA….)