This article is good news and bad news.
Good news – It advertises the fact that an “Exit Tax” exists.
Bad news – It doesn’t even begin to describe how punitive and confiscatory the exit tax is.
One million American citizens in Canada face double tax troubles. Max Reed explores these challenges in a spring series
Many U.S. citizens in Canada have been lining up at the consulate to shed their citizenship because of their American tax plight. You might be staring at the tax paperwork for two countries and the expense involved and thinking, “me too.” Let’s see what’s involved.
In this example, John is a Canadian citizen who lives in Ottawa. Both his parents were American so John is a U.S. citizen too. He keeps reading in the paper that as a dual citizen he’s subject to U.S. tax rules. Having lived in Canada all of his life, he’s annoyed that he has to file extra tax returns. So he marches down to the American Embassy, pays the current fee of $2,350 and takes the solemn Oath of Renunciation.
Before deciding to wave goodbye to the…
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