This is a very interesting blog post about FATCA from New Zealand. I highly recommend it.
The usually staid law firm of Minter Ellison describes this Act as “a striking example of what could be called American fiscal imperialism.” In short, it is attempting to turn all foreign financial institutions into tax collectors and snoops for the US Government by forcing them to hand over information about anyone considered to be a “US taxpayer.” This is not, as you might think, just people who live and work in the United States. The US is one of only two countries (the other is that bastion of liberty and human rights, Ivory Coast) that think it is their sovereign right to extract tax not only from those who live and work in the country but anyone who lives outside the country who they might deem to be a US citizen. Let me give you an example of who the US considers to be US citizen.
My friend, a New Zealander born and bred, married a US woman and together they have a newborn baby who was born in New Zealand. Unsurprisingly, the wife, who holds both NZ and US citizenship, is considered by the US Internal Revenue Service to be a valid target for the FATCA regime. She not only has to pay tax in New Zealand, where she now lives, she has to file a US tax return and pay taxes there as well (although she gets to deduct some, but not all, of the taxes she pays on her NZ income). But here’s the kicker – the IRS also considers the baby to be a US taxpayer, irrespective of whether the baby ever sets foot in the United States. My friend’s child will be subject to intrusive surveillance by the IRS for the rest of her life and her bankers will be forced to hand over information to the IRS about her, against her will and contrary to her rights under other NZ laws, and all this will be abetted by the New Zealand Government that, as the writer of this blog points out, considers her to be a “US taxpayer habitually resident in New Zealand.”
- Robert Wood perspective on #FATCA and countries siging IGAs (renounceuscitizenship.wordpress.com)
- #FATCA and human freedom – 2011 and 2013 perspectives from @WendyMcElroy1 (renounceuscitizenship.wordpress.com)
- #FATCA update from Germany from todundsteuer (renounceuscitizenship.wordpress.com)
- #FATCA – Because the world should support Homelanders (renounceuscitizenship.wordpress.com)
- The #FATCA IGA aka #OVDP for countries (renounceuscitizenship.wordpress.com)
- The tax man cometh: Are you ready for FATCA? (virginiabusiness.com)