Monthly Archives: May 2013

Asking the right questions about #FATCA

 

 

 

This is excellent! Thanks to Just Me for tweeting the conference!

 

#IRS abuse of Americans Abroad – The greater the effort! The greater the punishment!

serenity

 God, grant me the serenity to accept the things I cannot change,
The courage to change the things I can,
And wisdom to know the difference.

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More on #IRS abuse of #americansabroad

The following comes from a post at the Isaac Brock Society.

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A government of laws or a government of Levins? #Standwithrand

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Cook v. Tait 9: US may have to stop citizenship-based taxation to get #FATCA IGAs

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:

A FATCA IGA requires the non-U.S. country to attack it owns citizens, erode its tax base and pay tribute to the US.

A FATCA IGA does not require the US to erode its own tax base in any significant way.

Why is there this imbalance? The answer is simple. Only the US employs citizenship-based taxation. The US employs citizenship-based taxation as a weapon against not US citizens abroad, but against the countries where they reside.

Therefore, at the end of the day, if the US is going to get “FATCA Co-operation” from the rest of the world, it must stop citizenship-based taxation.

Interestingly this necessity seems to have been recognized in an academic paper –  FATCA: Toward a Multilateral Automatic Information Reporting Regime by Joanna Heiberg. I highly recommend this article.

She writes in part:

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US Ambassador to Canada Jacobson to join BMO

This is an incredible story. Ambassador Jacobson is best known for his amazing “70 year old Grandmas” speech in Ottawa on October 18, 2011.

“When I read all of this I was concerned. So last week I called the Commissioner of the United States Internal Revenue Service to see what we could do. I explained the problem to him.

The result is that both he and I are sympathetic to the concerns. We are going to work together to see if we can’t find a way to accommodate grandma — and others — here in Canada. But we have to figure out a way to do it without letting the person who is trying to evade taxes in the Cayman Islands off the hook.

My message on this one is to sit tight. We are not unreasonable. We are not unsympathetic. We are not irresponsible.”

David Jacobson – U.S. Ambassador to Canada – October 18, 2011

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