Monthly Archives: November 2012

Is Resistance to ‘FATCA’ Starting to Build?

Posted on November 21, 2012 at the Isaac Brock Society

Of particular significance is the following excerpt:

Trouble in ‘the True North Strong and Free’

 

One of the priority countries identified by Treasury as a must-have signatory on an IGA is Canada.  It would be a sharp setback for FATCA if Canada were to refuse to agree to an IGA or to allow extraterritorial enforcement of FATCA against Canadian institutions.  At the same time, given the high degree of overlap between the U.S. and Canadian economies (including the financial systems of the two countries) and the large number of U.S. citizens resident in Canada (many of them dual nationals), FATCA’s enforcement against Canada – whether with an IGA or without one – promises to be particularly expensive and invasive.

 

While Canadian Finance Minister Jim Flaherty has been blunt in expressing his negative opinion of FATCA, his Department of Finance recently asked for public comments on a possible IGA amid reports from both Ottawa and Washington that a deal would be finalized soon.   This news prompted circulation of an Appeal against FATCA and a U.S.-Canada IGA by The Isaac Brock Society (IBS), in cooperation with Repeal FATCA.  (The full text of the IBS Appeal follows this commentary, below).

 

As is clear from the comments on one site posting the IBS appeal, Canadians who support FATCA or an IGA are few and far between.  When the silence about FATCA is broken, and people can assess what is being imposed on them, FATCA comes up short.

 

The question is, will enough Canadian patriots get the facts before it’s too late – and will the Canadian media stop ignoring this assault on their country’s sovereignty and prosperity? Continue reading

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Roger Conklin on the stupidity of US tax law

Roger Conklin is an incredibly articulate proponent of abolishing citizenship-based taxation. Time after time he has demonstrated the linkage between the US  trade deficit and its tax policies (including citizenship-based taxation).

Here are two of his best comments from the Isaac Brock Society:

http://isaacbrocksociety.ca/2012/11/20/coerced-foreign-tax-compliance-is-killing-american-jobs/comment-page-1/#comment-95229 Continue reading

STOP an Impending Massive Handover of Canadian Sovereignty to the United States!, says Isaac Brock Society

The Government: Canada Must Say NO to the United States on ‘FATCA’

Call or email Stephen HarperJim Flaherty, and Your MP Today!

OTTAWA, Ontario, Nov. 14, 2012 /CNW/ – The following is released by the Isaac Brock Society:

Recently the Department of Finance invited comments on what was characterized as “an agreement to improve cross-border tax compliance through . . . the provisions enacted by the United States commonly known as the Foreign Account Tax Compliance Act (FATCA).” This eleventh-hour invitation came as sources in both Ottawa and Washington announced that they were close to finalizing an intergovernmental agreement (IGA) that would, in effect,deputize the Canadian government to enforce this American law in Canada. Continue reading

Excellent article on tax planning for #Americansabroad

I share this with you:

 

Are the tax professionals or the IRS the greater threat?

Almost one year ago, I wrote a post acknowledging that we can’t trust the IRS, and questioning whether US citizens abroad can  trust the cross-border professionals. A month later, I followed up with another discussion describing the interaction between the taxpayer, IRS and the cross-border professionals. The IRS is “tightening the noose”  by forcing tax preparers to be licensed by the IRS. To be clear, this means that tax preparers now work at the pleasure of the IRS. A group to tax preparers has sued the IRS to prevent this licensing framework. This is adding to the cost of US tax preparers which is making the cost of retaining US citizenship to high.

US taxes are so complicated that over 90% of US taxpayers use a computer program or some kind of professional tax preparer. Those using a tax preparer have a choice of: lawyer, CPA, Enrolled Agent or just a tax preparer.

Coming into and staying in tax compliance is difficult for US citizens abroad. As I have suggested before, the IRS is making it very difficult for US citizens abroad to be tax compliant. From the perspective of a cross border professional, there are three considerations:

1. The Professional Future of the Cross-Border Professional – Their right to make a living depends on their getting along with the IRS.

2. The Economic “Well Being” of the Cross-Border Professional – Their ability to make a living depends on their being able to extract enough fees from clients (or is the IRS the real client?).

3. The facts specific to the client – What kind of job will/can they do for the client that is consistent with the interest of the cross-border professional? Code: There is only so much money the client can pay.

Check out the following description of a US citizen abroad trying to be tax compliant.

Those who are NOT Twitter literate will click here.