What if the US wants you returned to the Homeland? The conventional wisdom is that there is not much the US can do if you are not within their borders. This is a complicated question. There are at least two issues:
Assuming a violation of U.S. law, under what circumstances will an extradition treaty provide for extradition to the U.S.?
China will cut taxes on the profits that foreign companies take out of the country by up to 50 per cent after rules on withholding taxes were relaxed to encourage more overseas investment.
The move will also apply to dividends paid by Chinese listed companies to foreign shareholders through the Qualified Foreign Institutional Investor scheme . In both cases, the lower tax rates will apply only to companies and shareholders based in countries, such as the UK, that have double taxation agreements with China.
The changes could save companies billions of dollars worth of tax payments, which might initially lead them to repatriate more profits, but ultimately should provide incentives for more investments, according to experts at KPMG. US companies, however, cannot benefit as they are taxed on a global basis by US authorities. Continue reading →
That question has consumed created enormous “life altering anxiety” and a large number of LCUs life credit units). Readers of this blog will have seen a number of compliance options acknowledged and considered. These range from “compliance going forward” at one end of the spectrum to OVDP at the other. At a minimum it is important to consider the ramifications of all options. That said, there are a large number of lawyers who believe that entering OVDP is the “default option”. At least one lawyer as stated his view that compliance means OVDP. (The validity of this position was strongly questioned here. At least one other lawyer has stated that he has “always gone in under reasonable cause”.
In any event, I have come to see that the question is NOT:
Whatever this means was announced on June 26, 2012 under the title of New Filing Compliance Procedures for Non-Resident U.S. Taxpayers. Those interested in this topic should check back frequently for more specifics. The specifics should be available no later than September 1, 2012. I am certain that the “cross border professionals” will say that this is “nothing new”. After all the statute of limitations for FBARs is six years. This is a message from the IRS and therefore it needs to be read carefully. It also needs to be read in the context of:
Today is an important day in Canadian History. Exactly 200 years ago today, the United States under President Madison attacked what was then British North America. The outcome of the war depends on which country’s historians you listen to. But what is clear is that – after three years, the United States failed in its military invasion of it’s British neighbour to the North. In other words U.S. expansion stopped at the 49th parallel – making the existence of Canada possible. Continue reading →
In order for legislation to have “moral force”, it should at a minimum:
1. Be read by legislators prior to it becoming law; and
2. Not contain provisions that are unrelated to the main purpose of the legislation – i.e. NOT “hitch a ride”
“Hitching a ride”** is especially easy if the Congressmen don’t read the legislation. Nancy Pelosi commenting in relation to Obamacare, noted that it was important for Congress to pass the bill, so that the American people (and presumably Congress) could learn what was in it.
FATCA is unrelated to the purpose of the HIRE Act. It simply “hitched a ride” into the Hire Act. Who knows how many Congressmen read and understood the Hire Act prior to voting in favor of it? Provisions that “hitch a ride” into legislation are analagous to soldiers left inside a Trojan Horse*. Once the primary legislation takes effect, the “hitchhiker provisions” will be unleashed on an unsuspecting public.
FATCA has been referred to as the “neutron bomb” of international finance. It is the most dangerous act of American Imperialism ever. It will hasten the demise of the U.S. as a world power. Continue reading →
It’s no secret that U.S. Green Card holders and immigrants have been among the biggest victims of OVDP and OVDI. For countless immigrants, the “American Dream” has turned into the “American Nightmare”. Imagine coming to a country – let’s call it “Form Nation”. Imagine not being told about the tax and reporting laws of “Form Nation”. Imagine not knowing about Mr. FBAR and then being told that you were a criminal and that the only way out was to pay up. Imagine, being told that you were a criminal according to the laws of a country AND LIVING IN THAT COUNTRY. Imagine trying to seek help from the “cross border professionals” who told you that you must go into OVDI (and pay them lots of money for the privilege). U.S. tax compliance is very expensive. Understanding FBAR penalties is import in making the OVDI decision. As bad as the situation has been for U.S. citizens living abroad, I suspect that the situation is far worse for the immigrants. What are they do do? For the most part they want to be in the United States (although after hearing their story, I suspect fewer and fewer people will want to immigrate to the U.S.). Like U.S. citizens living abroad, the lives of Green Card holders are also being destroyed.
I thought the following part of a thread should be made into a separate post. It illustrates the nightmare facing Green Card Holders. But, it also demonstrates how the Isaac Brock Society has become a real help to people in distress. What follows is certainly “Chicken Soup for the Immigrant Soul”, but it also delivered as a very nice “Good Night” story, helping this person get the good night’s sleep that he or she so craves. This thread is proof that a “good night’s sleep” can be had without spending $10,000.