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Archive for January 2013

2013 Jan 17 – Foreign

 
Foreign financial institutions given reprieves in US, sort of …
Thailand: The Nation (17 Jan 2013)

http://www.nationmultimedia.com/business/Foreign-financial-institutions-given-reprieves-in–30198062.html

Interim IRS announcements “only alleviate the immediate panic based on the unrealistic mid-2013 deadlines. … The IRS has also only engaged with a limited number of countries, leaving FFIs in all other jurisdictions to fend for themselves in establishing a direct relationship with the US tax agency. … What was a mild sense of panic has now been reduced to a sense of futility mixed with the recognition that FFIs need immediately to initiate their Fatca programmes if they want to have the on-boarding processes in place and signed off in time to meet the new deadline of December 31, 2013.”
 

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Written by usxcanada

17 January 2013 at 7:00 am

2013 Jan 17 – Treasury

 
Treasury and IRS issue final regulations to combat offshore tax evasion
U.S. Dept. of the Treasury (17 Jan 2013)

http://www.treasury.gov/press-center/press-releases/Pages/tg1825.aspx

“The U.S. Department of the Treasury and the Internal Revenue Service (IRS) today issued comprehensive final regulations implementing the information reporting and withholding tax provisions commonly known as the Foreign Account Tax Compliance Act (FATCA).” A filing version 544 page pdf of the regulations (publication scheduled for 28 Jan 2013) can be found at https://www.federalregister.gov/articles/2013/01/28/2013-01025/information-reporting-by-foreign-financial-institutions-and-withholding-on-certain-payments-to.
 

Written by usxcanada

17 January 2013 at 6:00 am

2013 Jan 16 – Green

 
Nigel Green
Foreign banks rejoice: overreaching U.S. tax law in trouble
American Banker (16 Jan 2013)

<a href="http://www.americanbanker.com/bankthink/rejoice-fatca-overreaching-us-tax-law-in-trouble-1055877-1.html?zkPrintable=1&nopagination=1"http://www.americanbanker.com/bankthink/rejoice-fatca-overreaching-us-tax-law-in-trouble-1055877-1.html?zkPrintable=1&nopagination=1

Green cites “two clear reasons” for his belief that FATCA implementation could well fail: (1) Dept. of Treasury has failed to meet two of its own deadlines — September 2012 and end of 2012 (2) “only the U.K., Denmark, Ireland and Mexico, plus a handful of British crown dependencies, have signed FATCA’s required Intergovernmental Agreement.”
 

Written by usxcanada

16 January 2013 at 7:00 am

2013 Jan 16 – Jacoby

 
Erich Jacoby-Hawkins
American FATCA punishes law-abiding Canadians
Barrie Examiner (16 Jan 2013)

http://www.thebarrieexaminer.com/2013/01/16/american-fatca-punishes-law-abiding-canadians

An op-ed rattles a Canadian saber and mentions two bad-match-up tax situations for U.S. persons in Canada: capital gain on principal residence, and TFSA/RESP/RDSP.
 

Written by usxcanada

16 January 2013 at 6:00 am

2013 Jan 15 – McKenna

 
Barrie McKenna
U.S. expats in Canada face new Obamacare health care tax
Globe and Mail (15 Jan 2013)

http://www.theglobeandmail.com/report-on-business/international-business/us-business/us-expats-in-canada-face-new-obamacare-health-care-tax/article7372249/

The new 2013 tax on investment income of 3.8% for wealthier U.S. extraterritorials may vitiate the supposed relief (strangely described as an “amnesty”) provided in 2012 by a special “streamlined” IRS program for previous nonfilers. Higher U.S. income tax rates, intergovernmental tax information sharing, and steep penalties pose further legal and financial hazards. McKenna quotes four different tax law and accounting professionals who stand to profit from generating fears. Consequently, this poor excuse for journalism amounts to a single-source infomercial for this class of “professionals.” In Kevyn Nightingale’s estimation, “tens of thousands of Americans living in Canada could be affected.”
 

Written by usxcanada

15 January 2013 at 6:00 am

2013 Jan 14 – Rozeboom

 
Bill Rozeboom
Featured letter: Canadian tax shelters offer no refuge from Uncle Sam
Edmonton Journal (14 Jan 2013)

Original link:
http://www.edmontonjournal.com/business/Featured+letter+Canadian+shelters+offer+refuge+from+Uncle/7818820/story.html

Additional link:
http://www2.canada.com/edmontonjournal/news/letters/story.html?id=3f0c9835-a4bd-44b5-b128-8a166a2eed72

This substantial and well-written letter details the difficulties that TFSAs and RESPs pose for extraterritorial U.S. persons. Conclusion: “Canada is unlikely to influence the way the U.S. treats its citizens abroad, but the Canadian government should not be complicit in making life miserable for any of its law-abiding dual-citizen residents.”
 

Written by usxcanada

14 January 2013 at 6:00 am

2013 Jan 12 – Golombek

 
Jamie Golombek
Obamacare could cost some Canadians a lot of money
Financial Post (12 Jan 2013)

http://business.financialpost.com/2013/01/12/obamacare-could-cost-some-canadians-a-lot-of-money/

As of 2013, U.S. persons in Canada who exceed a defined income threshold will face “a 3.8% surtax on net investment income, including interest, dividends and capital gains” to support Obama’s new federal health coverage plan.
 

Written by usxcanada

12 January 2013 at 6:00 am