Tag Archives: FATCA Canada

#Americansabroad will be subject to “economic quarantine” in a #FATCA world

The above tweet references a comment at the Isaac Brock Society.

@Nervousinvestor

See Deckard’s comment here:

http://isaacbrocksociety.ca/2015/01/27/are-strata-corporations-the-next-target-of-canadian-banks-fatca-zeal/comment-page-1/#comment-5391660

and Badger’s comment here:

http://isaacbrocksociety.ca/2015/01/27/are-strata-corporations-the-next-target-of-canadian-banks-fatca-zeal/comment-page-1/#comment-5394406

It is quite obvious that “U.S.ness” is a form of contamination that has the potential to first infect and then effect every aspect of human society. In Deckard’s comment he notes the restrictions placed on the Jews during the Third Reich. The restrictions were completely unjustifiable. Notice how they proceeded one “law” at at time. (what could be more legitimate than that – Remember the “Battle Cry of the Condor” – FATCA is “U.S. law”.)

Restrictions on U.S. persons are completely justifiable.

In the case of FATCA, U.S. persons really ARE a threat to the societies where they live. The reason, as has been articulated time and time again is that:

U.S. citizens are being used by the U.S. as tools (via citizenship-based taxation) to extract capital from other countries and transfer that capital to the U.S. There are people who do not understand this. There are people who pretend to not understand this. But, at the end of the day U.S. citizens really are IN ACTUAL FACT a threat to any country where they may reside.

Eventually countries will be forced to protect themselves from what I would call the:

“U.S.ness Forced Extraction of Capital” and the compliance costs associated with having U.S. citizens as residents.

Who could have imagined even 5 years ago that the discussion on this thread was even taking place?Whether a real threat or not, this newly discovered “Condo Terror”, will make condo boards and developers want to avoid U.S. persons. Same for jobs, marriages, businesses, etc.

But, here is the most likely next step.

Special tax laws imposed on U.S. persons. These laws will be for the purpose of neutralizing the extraction of capital by U.S. tax laws. Simple example:

“No person who is taxable as a U.S. person can have a tax free capital gain on a principal residence.”

(the effect would be to produce a Canadian tax which can be used as a credit against a U.S. tax)

So, although U.S. citizens would still be allowed to own property, they will be subject to special tax rules. These rules are designed to protect the local tax base from the theft of capital by the U.S. Perfectly reasonable. Unfair to the U.S. person? Of course, but they can and should renounce.

On a positive side, I predict a whole new universe of financial products.

These will be designed to:

A. Provide products that give U.S. persons the opportunity to plan for retirement; and

B. Segregate U.S. persons from “free people” so that the “free people” cannot be harmed by the “U.S. contamination”

These new investment vehicles will be a welcome development.

Perhaps we will see Condominiums that are specifically for those who carry the disability of U.S. citizenship.

U.S. citizenship is now a disability and this opens up a whole new world of possible financial products for this group of disabled people.

We are witnessing the beginning. What’s important to note here is that by using FATCA and CBT to attack the tax base of other countries, the U.S. has created a situation where retaliation against U.S. persons is rational, necessary and completely justifiable.

If you don’t want to live in the USA you should renounce NOW. You won’t be able to have any kind of life as a U.S. citizen abroad!

The defensive measures taken to protect countries from “U.S. person contamination” will be incremental and significant. But, they will quickly add up to a world where “U.S. persons are subject to “economic quarantine”. I could also see them being barred from certain professions. For example, the legal profession. Do you really want a lawyer who is subject to FBAR on client trust accounts? Real Estate: Do you really want a broker who must report his trust accounts (with your money) to the IRS?

The implications are huge.

No doubt, some will view this prediction as extreme.

Consider this comment to be a “message in a bottle”. Read it again in 10 years.

And finally, (to echo some of the posters here):

If you want to stop this, then you support the people who are fighting on your behalf.

I am thinking of the stopfatca.ca legal challenge.

Brandeis: The right to be let alone, to have privacy, is the most comprehensive and valued right

An attack on privacy is an an attack on freedom itself.

I have previously posted on the theme of – “From Facebook To FATCA” . My theory has been that FATCA (which is an erosion of freedom) is possible only in a world that does NOT value privacy. The erosion of privacy NECESSARILY LEADS to the erosion of freedom.

An earlier post describing the relationship between FATCA and freedom included:

The argument over FATCA is NOT really about taxes. The argument is over whether individuals should be allowed to have freedom and privacy.

The U.S. government wants to abolish privacy and freedom.

Some countries and individuals want to preserve freedom (at least as long as possible.)

Question: How did the values of “freedom” and “privacy” disintegrate? Why are so many people unconcerned about the the loss of privacy? Makes no mistake about it, “privacy” and “freedom” are linked.

I speculate that the world of social media has paved the way for this. People now think nothing of having their life visible to all on Facebook, Twitter and the rest. If there is no personal privacy, and financial privacy is part of personal privacy, then …

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@PMHarper gives @BarackObama #FATCA – the “Gift that keeps on giving”

The article referenced in the above tweet includes:

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Canadian institutions scramble in race to comply with FATCA

Stephen Kish and the ADCS-ACSC.ca site and initiative mentioned in this Financial Post article. Note this specific comment left (by a commenter on this blog) to the article:

Bar none, the most idiotic financial blunder I ever made in my life was to have married a US citizen and then move “off the plantation.” Not only is the USA and many of it’s people not understanding of why one would do such a thing, they’re actually insulted by this…..hence this kind of extraterritorial regulation.

Sorry to the general public of my once strong Canada, but as I’m this late along in life, there’s a good chance I’ll end up being a parasite off the general taxpayer here in my old age, as all my previous diligent retirement planning will have all been for the government of our unwelcome neighbour. Even worse, low estimates say there are over 1 million of us in Canada.I have no reason to think the Gov’t of Canada won’t someday soon become a willing enforcer of the IRS.

If only the USA was like any other country of significance in this world and only stuck to worrying about those within it’s borders and left the rest of us alone who owe them nothing (except in their minds) I wouldn’t be saying this. My spouse would give up US citizenship in a heartbeat if it didn’t mean even more immediate financial ruin

Canada should, for it’s own good, place an immediate moratorium on any immigration of US citizens to prevent even further economic damage in the future. If these new immigrants do “comply” with their “master,” there are still huge downsides for Canada.

Financial Post | Business

The incorporation of the U.S. Foreign Tax Compliance Act into Canadian law is proving very costly for large Canadian financial institutions and an expensive administrative nightmare for smaller ones.

“Where an institution falls on the FATCA preparation spectrum varies with the size and sophistication of the enterprise,” says Adrienne Oliver in Norton Rose Fulbright Canada LLP’s Toronto office.

On June 19, Parliament passed the implementing legislation. Its main purpose is to track down Americans who are avoiding their obligations to pay U.S. tax on their worldwide income. The law requires most Canadian financial institutions to report the financial activities of their American clients to the Canada Revenue Agency, who will then provide it to the IRS pursuant to existing agreements with the U.S.

“Regardless of the method Canadian banks use to identify U.S. account holders, they will be undertaking a monumental project that is ongoing and not time-limited,” says Veronika…

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For Green Card Holders with #Offshore accounts relief may be on the way

And from the IRS Commissioner …

 

On June 3, 2014 IRS Commissioner Koshinken in prepared remarks commented on matters of interest to U.S. citizens abroad including:

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#FATCA post from @Mopsicktaxlaw highlights injustice for #Americansabroad

A new post from Mopsick Tax Law offers interesting insights into the “FATCA Safe Harbour” rules the IRS has offered FFIs during the first two years of FATCA. The post (if I am reading it correctly) strongly suggests that the purpose of the delay is to assist the “foreign banks” (you know, the Bank of Nova Scotia branch near your house) to “search and destroy” Canadians of U.S. origin.

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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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