A comment at the Isaac Brock Society included the following:
On Oct. 18th, 2012 I applied at the Royal Bank to become a signature to my husbands direct investing account. The question of my birth place was on the application form and as always I advised I was born in the U.S. At the time I was unaware of FATCA.
During that meeting, via phone, I was advised by RBS Direct Investing that my RRSP account was frozen and I could no longer trade within that account. The individual I dealt with at RBC Direct Investing was a Senior Manager. My account would be frozen until such time as I completed a “w-9″ form which required a SSN which I have never had. I have made appts. twice at Toronto Consulate to apply for SSN but have cancelled as I am not sure it is the right move for me to make at this time.
I did write letters to the PM, Jim Flaherty and my MP….in fact, just mailed them yesterday regarding my situation and I did relay the issue with the Royal Bank.
My husband and I will be attending the meeting on June 15th ….bit of a distance for us but we will be there.
As I watch the IGA spectacle unfold, I have the feeling that other countries don’t understand citizenship-based taxation. They don’t understand that by employing citizenship-based taxation, they are really asking other countries to identify lawful residents of their countries, and help the U.S. collect tax from them. This tax collected as at the expense of the country where those US citizens reside. All penalties paid under the OVDP and OVDI penalty programs erode the tax base of the country where the U.S. citizen abroad resides. Because no other country (except Eritrea) imposes citizenship-based taxation, reciprocity (even if the U.S. could be trusted, which it clearly can’t) would not mean that the US would report on citizens of other countries. At best, the US would report on residents of other countries that have bank accounts in the US. The point is a simple one:
Confiscation of assets is a direct attack on the principle of saving!
If you haven’t heard by now, Cyprus has announced the direct confiscation of money in its citizens bank accounts. The announcement was made on a Saturday when the banks were closed. The banks remain closed for a bank “holiday” and the only issue is how and what percent of people’s “after tax” savings will be confiscated from them. As one commentator has suggested Cyprus appears to employing a (contextually) clever “divide and conquer” technique – turning citizens against each other. Those with fewer savings will have less stolen from them and those with more savings will have more stolen from them. What could be more just than that?