Monthly Archives: April 2014

Canada’s U.S. tax capitulation

Every country has the right to craft and enforce its own laws within its borders. But when a nation insists that its laws must apply in other countries – as the United States does in this and other instances – that’s a problem.

Financial Post | Opinion

This agreement is about expanding America’s oversight of global commerce

As of this month, the Canada Revenue Agency works for the Internal Revenue Service. The subordination of Canada’s tax authority to its American counterpart came in the form of a euphemistically named “Intergovernmental Agreement” pursuant to the U.S. Foreign Accounts Tax Compliance Act (FATCA).

The result is that starting Canada Day (July 1), Canadian banks and other financial institutions will be required to comb through client accounts containing $50,000 or more to determine if they are “U.S. Reportable.” They must then inform CRA, which will pass the information along to the United States.

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Notwithstanding that Canada’s leaders have subjected their citizens to the most rapacious and malevolent tax department in the world in the form of the IRS, they have committed a craven surrender of national sovereignty.

FATCA, passed by the U.S. Congress in 2010, is an extension…

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The world according to @SenSchumer – It’s a small world after all!

 

 

 

What US tax compliance means for #Americansabroad who have lived their whole lives in Canada

The above tweet references the following comment at the Isaac Brock Society. It explains why (if the U.S. is really serious about encouraging Americans abroad to enter the U.S. tax system, it will have to offer a serious amnesty program. This commenter is brutally honest and explains the reality of the situation very well. (Note I have added various links to the comment.)

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The analysis of a #FATCA battle – US has no natural allies in this game of brute force

The above tweet references an interesting comment at the Isaac Brock Society. I reproduce it in full. It  reveals an aspect of FATCA games that has not been sufficiently considered.

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How to get rid of your U.S. citizenship

We talked to a series of Canadians with some form of U.S. citizenship – by birth or by parentage – who are wondering whether to get rid of it, or already have.

Most of the people we interviewed about their loss of U.S. citizenship, or plans to lose it, asked not to be identified by their full names. Their reasons were: not wanting to be flagged at the border; not wanting a Canadian bank to flag their accounts; abusive calls the last time they were quoted in the media; and “wanting to keep my real and normal life separate from my activity on this matter, so my family and I can move on from it.”

Global News

Is a second citizenship in the United States an asset? It depends.

Many Canadians have built careers in the U.S. that were simplified by the accident of their birthplace, or of a parent’s. If you want to work in the U.S., it’s useful to not have to worry about visas and green cards. (“Home is the place where, when you go there, they have to let you in,” wrote New England poet Robert Frost.)

But it became a potential liability in February when Canada made a deal with the U.S. on the Foreign Account Tax Compliance Act, or FATCA.

That obliges Canadian banks to look for “U.S. indicia,” such as a U.S. birthplace…

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