Archive for November 2012
Banks bracing for U.S. law requiring they inform on dual citizen accounts
Macleans (28 Nov 2012)
Canadian Finance Minister Jim Flaherty is quoted as saying: “An agreement with the U.S. to share information on a government to government basis, within prescribed limits, will bring certainty to the application of the FATCA regime to Canadians, and will also facilitate compliance by our financial institutions.” Peculiar reference is made to a “previous deal with Washington involving dual citizens” for noncollection of US tax and penalties. The supposed deal results from nothing more than careful Canadian reading of the existing tax treaty.
Those fleeing Obama’s America: prepare to be taxed
Canada Free Press (28 Nov 2012)
Rushton backgrounds on 2007 U.S. legislation designed to impose an exit tax. He anticipates the possibility of a 30% exit tax on all assets in excess of $600,000 for U.S. emigrants and renunciants.
IRS pursues Americans living abroad
The StarPhoenix (26 Nov 2012)
McBride provides a concise summary covering FBAR, voluntary disclosure, new streamlined procedure, and renunciation of US citizenship
Fatca bringt Ehekrisen
Handelszeitung (25 Nov 2012)
U.S. persons in binational marriages suffer stress and divorce because of U.S. filing requirements. “Binationale Ehen seien zunehmend Stresssituationen ausgesetzt, sagt Karr. ‘Bei den Treffen brachen einige Frauen in Tränen aus, da ihre Ehepartner kein gemeinsames Konto haben beziehungsweise ihre Kontoinformationen nicht mit der US-Regierung teilen wollen.’ Deswegen sei es auch schon zu Scheidungen gekommen.”
Land of the flee: why, despite Obama’s re-election, Americans are renouncing citizenship in droves
The Independent (19 Nov 2012)
Rich points to the trend of increasing renunciation, and enumerates these aspects: (1) paying taxes and receiving virtually no benefits (2) invasive reporting edicts such as FBAR (3) time and cost of compliance. “A toxic combination of frustration, financial burden and fear of further regulations has created a new anti-American movement among our own people. For those defectors, bitterness has replaced any shred of nostalgia for the United States.”
Twenty ways the IRS will find your Yankee clients
International Adviser (12 Nov 2012)
An experienced tax advisor in London lists 20 ways that the IRS can/will discover non-filing extraterritorials. Treitel cites “very great risk of being charged potentially ruinous penalties.” The list is grouped into (a) acts that reestablish US ties [1-6] (b) marriage, divorce, death [7-10] (c) being named in governmental and tax authority information exchange [11-18] (d) online activities [19-20].
U.S. engaging with more than 50 jurisdictions to curtail offshore tax evasion
U.S. Dept. of the Treasury (8 Nov 2012)
Countries listed fall into four categories: (1) “already concluded” [only United Kingdom] (2) “in the process of finalizing an intergovernmental agreement” [includes Canada] (3) “actively engaged in a dialogue towards concluding an intergovernmental agreement” (4) “working to explore options for intergovernmental engagement.”