Monthly Archives: March 2014

@Mopsicktaxlaw talks The #FATCA of the matter, but note “Final FATCA Fact”

As always, interesting commentary from Mr. Mopsick of Mopsick tax law.

Note his concluding paragraph:

FINAL FATCA FACT: With Americans abroad facing signs that read “NO AMERICAN CUSTOMERS PLEASE!” on an increasing basis, practitioners who care about this issue will continue to fight for tax justice for Americans abroad on whatever front is necessary and available. Sadly, we are seeing nothing whatsoever from the IRS that they “get it” and plan to issue even the simplest directives which show that they have no intention of surrounding Canadian nursing homes with armed special agents or more importantly that the Streamlined Program will be expanded so that it actually applies to someone, or that front line OVDP troops are permitted to actually exercise some discretion in excluding certain assets from the confiscatory FBAR penalty base.

What is clear is that FATCA has already spawned multiple years of litigation between innocent taxpayers and the IRS which will start to reach the courts in a year or two.  It is not easy to pick a fight with the federal government, but given the seemingly chaotic roll of events during the last four years since FATCA was enacted, those of us who are ready to roll up our sleeves are all saying “bring it on!”

I am sure that all Americans abroad would agree with Mr. Mopsick on this. Thanks to Mr. Mopsick for taking a clear position on this!

 

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Cook v. Tait 14: It’s NOT “citizenship-based taxation”, It’s “extraterritorial taxation”

The Cook v. Tait Series of Posts

boldlygo

In January of 2013 I began a series of posts to explore the rationale (if there is one) for  “citizenship-based taxation”. I simply cannot understand how the United States of America, a country that once was a leader in human rights, can treat it’s citizens (not to mention Green Card holders) so badly. I assume that Congress has simply not YET considered this issue.

This series of posts (including the Prologue are):

 

Cook v. Tait Prologue: Citizenship renunciations soaring under Obama – Renunciation as an Act of Self Defense

Cook v. Tait 1: Does Cook v. Tait really mean that citizenship-based taxation is constitutional in all cases?

Cook v. Tait 2: The presumption of government benefit

Cook v. Tait 3: Legal Scholar agrees justification in Cook v. Tait, but offers new justification for citizenship-based taxation

Cook v. Tait 4: Taxation of #Americansabroad based on US culture 150 years ago! Time warp or what!

Cook v. Tait 5: Citizenship-based taxation was never justified – League of Nations reports!

Cook v. Tait 6: Taxation of Green Card holders who reside outside the U.S.

Cook v. Tait 7: Equality: Law prohibits both rich and poor from sleeping on the park bench

Cook v. Tait 8: Does citizenship-based taxation cross the boundaries of tax justice?

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

Cook v. Tait 10: Those born outside the U.S. to U.S. citizens, may not be U.S. citizens

Cook v. Tait 11: Who should #Americansabroad be compared to for tax purposes? Even U.S. citizens are entitle to “equal protection” under the 14th amendment

Cook v. Tait 12: Afroyim v. Rusk, The 14th amendment and the forcible destruction of citizenship

Cook v. Taint 13: The U.S. can no longer be permitted to levy taxes on the residents of other countries in general and border babies in particular

Cook v. Tait 14 – Boldly Go where no taxing authority has gone before

Cook v. Tait 15 – Why did the Soviet Union, Bulgaria, Vietnam and Myanmar adopt CBT? To maintain control.

Cook v. Tait 16 (Reblog of Tax-Expatriation.com post) Supreme Court’s Decision in Cook vs. Tait and Notification Requirement of Section 7701(a)(50)

 

The above tweet references the following comment to the Cook v. Tait 1 post.

 

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Vern Krishna: U.S. steps up tax enforcement beyond its borders

Vern Krishna is tax counsel with Borden Ladner Gervais LLP and executive director of the Tax Research Centre at the University of Ottawa (Common Law).

Financial Post | Business

As of July 1, the United States will tighten the tax noose around the necks of Canadian citizens living in Canada and anyone else whom it considers to be “U.S. persons” for tax purposes. The Canada Revenue Agency will assist the U.S. by kicking away the stool on which they stand. All of this intrusion into our sovereignty is in the name of curtailing so-called “aggressive tax avoidance.”

Tax avoidance is as old as taxes. Our courts tell us that tax minimization is quite legitimate, but governments say that “aggressive” tax avoidance is not, and they are stepping up efforts to collect information from international sources, financial institutions, whistle blowers, and even criminals who have stolen information. Canada now has in force 18 Tax Information Exchange Agreements (TIEAs) with other jurisdictions. It has signed four other TIEAs that are not yet in force, and is negotiating a further eight with…

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Finally! An acknowledgement that #FATCA goes after Canadian citizens

Strange but true. Vern Krishna begins his article in the National Post with the following sentence:

As of July 1, the United States will tighten the tax noose around the necks of Canadian citizens living in Canada and anyone else whom it considers to be “U.S. persons” for tax purposes.

Mr, Krishna acknowledges that:

1. Canadian citizens are “U.S. persons”; and

2. There are “U.S. persons” who are NOT Canadian citizens.

Finally, a lawyer and legal academic who has  got it right (only kidding). You can read the complete article here. Mr. Krishna acknowledges that FATCA is quite “intrusive” for dual citizens by accident.

This article is interesting because an analysis by Mr. Krishna (he is/was a legal academic) is about the best one can hope for. That said, if he were my student, I would give him a grade of C for this article.

 

 

 

Slavery vs. Citizenship: What’s The Difference?

DumpDC

What Does It Mean to Be A Slave?

By Eric Peters

Debating the merits of a particular government policy or proposal with authoritarian-minded political opponents is pointless – if you’re hoping to persuade, at any rate. Far better to ask them a few apparently simple questions – and force them to confront the disquieting answers about the authoritarian nature of the political and social system they support.

For instance, you might ask what their view of slavery is. Is it morally wrong to own another human being? Probably, they will say it is wrong. Now ask: What does it mean to be a slave? Usually, they will tell you it means being the property of another. Now ask the killer follow-up: What does it mean to be the property of another?

Point out that it means having control over another person’s life – control of his actual person, his body…

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Cook v. Tait 13: The US can no longer be permitted to levy taxes on border babies living in Canada

Introduction – The Cook v. Tait Series of Posts

citizenship

In January of 2013 I began a series of posts to explore the rationale (if there is one) for  “citizenship-based taxation”. I simply cannot understand how the United States of America, a country that once was a leader in human rights, can treat it’s citizens (not to mention Green Card holders) so badly. I assume that Congress has simply not YET considered this issue.

This series of posts (including the Prologue are):

Cook v. Tait Prologue: Citizenship renunciations soaring under Obama – Renunciation as an Act of Self Defense

Cook v. Tait 1: Does Cook v. Tait really mean that citizenship-based taxation is constitutional in all cases?

Cook v. Tait 2: The presumption of government benefit

Cook v. Tait 3: Legal Scholar agrees justification in Cook v. Tait, but offers new justification for citizenship-based taxation

Cook v. Tait 4: Taxation of #Americansabroad based on US culture 150 years ago! Time warp or what!

Cook v. Tait 5: Citizenship-based taxation was never justified – League of Nations reports!

Cook v. Tait 6: Taxation of Green Card holders who reside outside the U.S.

Cook v. Tait 7: Equality: Law prohibits both rich and poor from sleeping on the park bench

Cook v. Tait 8: Does citizenship-based taxation cross the boundaries of tax justice?

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

Cook v. Tait 10: Those born outside the U.S. to U.S. citizens, may not be U.S. citizens

Cook v. Tait 11: Who should #Americansabroad be compared to for tax purposes? Even U.S. citizens are entitle to “equal protection” under the 14th amendment

Cook v. Tait 12: Afroyim v. Rusk, The 14th amendment and the forcible destruction of citizenship

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Cook v Tait 13: Citizenship-based taxation must come to an end

The above tweet references a calm, but desperate plea posted at the Isaac Brock Society. The plea includes:

 

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Conrad Black: Making Canada matter in the world

“No one can accuse Harper and Baird of being overly deferential to Washington, and Harper has commendably kept his distance from, and avoided even the usual self-abnegating pleasantries with, U.S. President Barack Obama and his predecessor, George W. Bush.”