Archive for November 2011
Q&A: Eritreans can have Canada’s protection from country’s ‘diaspora tax’: Jason Kenney
National Post (29 Nov 2011)
Canadian Minister of Citizenship and Immigration Jason Kenney says Canada has “concern about excessive foreign interference in diaspora populations.” Kenney goes on to encourage “Canadians to realize they have no obligation to a foreign government … and they have no reason to be afraid of the activities of a foreign government in Canada.”
Dual citizens urged to boycott U.S.
Telegraph-Journal (29 Nov 2011) A3
“American-born lawyer David Lutz of Hampton addressed a group of dual citizens in Fredericton on Monday night where he encouraged them to steer clear of the United States until the whole tax mess is settled.”
Peter W. Dunn
FATCA, a ticking time bomb for the economy
American Thinker (28 Nov 2011)
Foreign financial institutions “must either comply with the invasive regulations of FATCA or simply abandon the U.S. markets.” Costs and privacy concerns make compliance extremely difficult. US citizens abroad are responding by renouncing citizenship, eliminating all US investment, and avoiding travel to the United States. Capital flight could amount to an estimated $14 trillion.
Scratched by the FATCA: Congress creates a bureaucratic nightmare for fund managers
Economist (26 Nov 2011)
The difficulties of FATCA implementation are outlined in some detail.
N.B.’s dual U.S., Canadian citizens stiffening opposition to tax penalty
Telegraph-Journal (22 Nov 2011) A1
Marie Cashion and Robert Gerard plan a Nov 28 meeting at the University of New Brunswick “to inform and marshal the thousands of New Brunswick residents who could be affected” by U.S. provisions for expatriate taxation. Gerard awaits the results of a voluntary disclosure of noncompliance since 1975. Accounts of the September 16 Flaherty letter and the Oct 18 Jacobson speech are provided as context.
Getting results: Response from Minister Flaherty re United States taxation of Canadian citizens
Vancouver Kingsway Member of Parliament [Blog] (17 Nov 2011)
Davies reproduces the 28 August 2011 letter he sent to three relevant Ministers in his capacity as Official opposition Critic for Citizenship, Immigration and Multiculturalism. Appended as 3-page pdf file is the Oct 26 response from Minister of Finance Jim Flaherty. A two-page letter is followed by Fact Sheet — October 2011: U.S. Tax and “FBAR” Filing Requirements for U.S. Citizens in Canada, a document which includes this explanation as an endnote:
Penalties imposed under FBAR will not be collected by the Canada Revenue Agency (CRA):
The Canada-United States Income Tax Convention contains a provision which allows for the collection by a country of taxes imposed by the other country, including civil penalties. This provision does not apply to penalties imposed under laws, such as the U.S. Bank Secrecy Act, that impose only a reporting requirement (as opposed to those that impose taxation along with reporting requirements). Also, the CRA does not and will not collect the U.S. tax liability of a Canadian citizen if the individual was a Canadian citizen at the time the liability arose (whether or not the individual was also a U.S. citizen at that time).
Robert W. Wood
IRS FATCA Guidance, Round 3
Forbes (17 Nov 2011)
Tax lawyer Wood outlines “the third IRS missive providing preliminary guidance on FATCA” and provides links to much context.