The United States is the only developed country in the world that subjects its nonresident citizens to complex, ongoing, multiple, and frequently meaningless financial reportbacks. Recent new enforcement initiatives threaten to exacerbate the already onerous burdens imposed by longstanding American exceptionalism. The resulting current situation is fraught with uncertainty, inconsistency, and anxiety. The listing below annotates material selected on the basis of interest, quality, and/or significance. The circumstances faced since 2011 by hundreds of thousands of beset residents and citizens of Canada inform the scope of this effort.
Arthur Cockfield / Allison Christians
How the U.S. pulled off the great Canadian privacy giveaway
Globe and Mail (10 Apr 2014)
Two Canadian law professors succinctly outline unprecedented FATCA giveaway of Canadian sovereignty to the United States. They propose: “Canada should only transfer data associated with U.S. persons who are not Canadian residents.”
How to get rid of your U.S. citizenship
Global News (4 Apr 2014)
A lengthy account of FATCA, bank reporting on US persons, and terminating US citizenship concludes with four personal Canadian stories.
Roy A. Berg / Kim G.C. Moody
Leaked guidance notes threaten to invalidate Canada’s FATCA
STEP Resources (1 Apr 2014)
“Canada’s legislation and leaked guidance notes threaten to invalidate the IGA and cast certain Canadian entities, including private trusts, out of the walled garden of the IGA and into the inky blackness of FATCA.”
U.S. steps up tax enforcement beyond its borders
Financial Post (25 Mar 2014)
A brief account of increased US enforcement of its tax regime on extraterritorial US person.
Border shakeup could have tax consequences for snowbirds
Financial Post (11 Mar 2014)
After 30 June 2014, cross-border initiatives will track Canadian ingress and egress at the US border. “A snowbird who is in the U.S. too long also risks becoming a deemed U.S. resident subject to tax on worldwide income.”
Robert W. Wood
American tax hustle for U.S. citizens abroad
Forbes (11 Mar 2014)
Outline of three compliance options: streamlined, voluntary disclosure, quiet disclosure. Also a brief summary of four expatriation options.
Virginia La Torre Jeker
The tax non-compliant American abroad: what are your choices?
Angloinfo (10 Mar 2014)
“The typical client I assist owes little, or no tax after taking into account foreign tax credits and foreign earned income and housing exclusion amounts … [but] is potentially subject to huge penalties.” Options are outlined: voluntary disclosure, quiet disclosure, streamlined procedure. Specific comment also focuses on high/low risk classifications and what qualifies as “reasonable cause”