Archive for May 2012
Taxes create cross-border issues
Calgary Herald (28 May 2012)
Cross-border tax specialist Roy A. Berg in Calgary offers multiple examples of “income that’s taxed more favourably in Canada versus the U.S. … contributions to RRSPs, capital dividends, stock options and flow-through shares, charitable deductions and the sale of a principal residence.” He claims “very few people” can provide the advice needed by the hundreds of thousands of deemed U.S. persons in Canada. “The penalty regime in the U.S. tends to be much harsher than in Canada and more onerous.”
The accidental Kenyan: What would happen if the African nation copied U.S. tax policy?
Vancouver Sun (28 May 2012)
The plight of some seven million extraterritorial US citizens, with around one million in Canada, is dramatized by imagining that similar measures are applied to Barack Obama because of “accidental” Kenyan citizenship stemming from his father. The conditions seem too preposterous to be true — but unfortunately they are.
New taxes for “renouncers”?
Wall Street Journal (25 May 2012)
Passage of the Schumer-Casey exit tax proposal is seen as much less likely than approval of a measure — already passed by the US Senate — to link passport revocation/denial to tax delinquency.
Snowbirds, Americans living in Canada read on …
Winnipeg Free Press (18 May 2012)
Republished from the Winnipeg Free Press print edition May 18, 2012 B12
Financial planner Christianson outlines the substantial presence test for snowbirds, and reports on recent changes in Canada regarding “import” of funds from 401K or IRA retirement plans.
U.S. taxman extending reach abroad
Halifax Chronicle-Herald (18 May 2012)
A columnist connects a recent Canadian delegation to Washington with FATCA, up to one million residents of Canada, and the potential concerns of Canada’s privacy commissioner.
Tax man makes it hard to be an American
MarketWatch (18 May 2012)
Lewis uses Canadian Peter Dunn as a case study in why extraterritorial US citizens are giving up that citizenship. Information from American Citizens Abroad supplements the account.
Should you renounce your U.S. citizenship?
Wall Street Journal (18 May 2012)
Saunders provides a substantial, tight, well-organized summary of the circumstances and issues and history associated with renunciation of US citizenship. A New York immigration lawyer reports “twice as many inquiries.” The new enforcement regime reflects “worries about capital flows and terrorism” in the wake of 9/11.