U.S. Citizens in Canada InfoShop

Archive for January 2013

2013 Jan 7 – Gifford

James Gifford
2013 — The fiscal cliff, Obamacare, and maybe even US tax reform
Moodys Tax Advisors (7 Jan 2013)


Tax lawyer James Gifford says: “Foreign taxes most likely will not be creditable against the 3.8% Obamacare tax on net investment income. … At this time it is unclear whether the Income Tax Treaty between the US and Canada, which strives to eliminate the double taxation of income, will apply.” Threshold is “based on adjusted gross income plus the amount of any foreign earned income exclusion” [emphasis added]. The lowest threshold is $125,000 for married filing separately. In the broader picture, “dramatic changes in the US tax landscape that have occurred since 2008 are finally crystalizing into … a policy framework for ordinary Americans living abroad to get and stay compliant, with the FATCA rules making foreign governments and banks assist the IRS.”

Written by usxcanada

7 January 2013 at 9:00 am

2013 Jan 7 – Land

The land of the free? The US FATCA law will likely affect both Americans in Thailand and financial institutions that deal with any Americans
Bangkok Post (7 Jan 2013)


This longer article covers a lot of standard facets of the topic from a Thailand perspective. Jonathan Blaine of KPMG Thailand says: “”KPMG expects most banks in Thailand will comply with FATCA, but that doesn’t mean they won’t throw their American clients out.”

Written by usxcanada

7 January 2013 at 8:00 am

2013 Jan 7 – Nightingale

Kevyn Nightingale
New US investment income tax
mnptax.ca (7 Jan 2013)


A Toronto CPA specializing in expatriate taxation warns that U.S. citizens in Canada may, as of 2013, be subject to a new 3.8% taxation of investment income (interest, dividends, capital gains, annuities, and rents), tax that cannot be offset by Canadian income taxes paid. The lowest tripwire for such taxation seems to be at the level of total annual income of $125,000 for married filing separately.

Written by usxcanada

7 January 2013 at 7:00 am

2013 Jan 7 – Whiteley

Don Whiteley
IRS wants Canada to nab U.S. tax cheats: Why we should care
Globe and Mail (7 Jan 2013)


Whitely calls attention to current behind-the-scenes negotiations about how Canada will bow to the U.S. FATCA imperative. FATCA itself is characterized as “the most egregious example of extra-territorial reach the U.S. has ever attempted.” Whitely asserts of the Harper government: “The plan is not to bring the details of such an agreement before Parliament.” The article ends by dangling the question of how the Canadian government can reach a deal that satisfies the United States without violating the Canadian Charter of Rights and Freedoms.

Written by usxcanada

7 January 2013 at 6:00 am

2013 Jan 4 – Francis

Diane Francis
Canada take note: America’s tax system is messy but good
HuffPost (4 Jan 2013)


Dual citizen Francis uses her “expensive perch” to claim a “unique perspective” that the U.S. system of “checks and balances” has just now become operational — despite “a big fiscal mess, due to panic over 9/11, the 2008 debacle and unjustifiable tax cuts and wars paid for with a national credit card.” Meanwhile, Canadians are judged to “pay higher taxes because there are no checks and balances.” Comment: It is a pleasure to think that a person with this narrow tax-focused mindset will continue to be subjected to the highest taxation going in either of the two systems, together with the costs and uncertainties and risks of compliance with U.S. filing requirements.

Written by usxcanada

4 January 2013 at 6:00 am

2013 Jan 2 – Smith

Ralph Smith
Taxes and American citizenship
FedSmith.com (2 Jan 2013)


A former U.S. federal civil servant bluntly assesses expatriation and the U.S. exit tax at some length with multiple links to other accounts.

Written by usxcanada

2 January 2013 at 6:00 am

2013 Jan 1 – Thomas

Cal Thomas
How much is it worth to be a U.S. citizen? Tax laws make it hard for expatriates to justify keeping an American passport
Baltimore Sun (1 Jan 2013)


Thomas tells the story of anonymized Sam, a Hong Kong resident who felt financially forced to abandon US citizenship. Details of the burden of asymmetry include confiscatory taxation of 14 years of pension savings. Sam says: “I had paid over $1 million in U.S. taxes but didn’t receive any benefits, nor did my wife and kids.”

Written by usxcanada

1 January 2013 at 6:00 am