Archive for March 2014
U.S. steps up tax enforcement beyond its borders
Financial Post (25 Mar 2014)
A brief account of increased US enforcement of its tax regime on extraterritorial US person.
Border shakeup could have tax consequences for snowbirds
Financial Post (11 Mar 2014)
After 30 June 2014, cross-border initiatives will track Canadian ingress and egress at the US border. “A snowbird who is in the U.S. too long also risks becoming a deemed U.S. resident subject to tax on worldwide income.”
Robert W. Wood
American tax hustle for U.S. citizens abroad
Forbes (11 Mar 2014)
Outline of three compliance options: streamlined, voluntary disclosure, quiet disclosure. Also a brief summary of four expatriation options.
Virginia La Torre Jeker
The tax non-compliant American abroad: what are your choices?
Angloinfo (10 Mar 2014)
“The typical client I assist owes little, or no tax after taking into account foreign tax credits and foreign earned income and housing exclusion amounts … [but] is potentially subject to huge penalties.” Options are outlined: voluntary disclosure, quiet disclosure, streamlined procedure. Specific comment also focuses on high/low risk classifications and what qualifies as “reasonable cause”
Canada’s draft legislation undermines FATCA agreement with U.S.
Financial Post (10 Mar 2014)
Tax lawyer Roy Berg of Calgary’s Moodys Gartner Tax Law warns that Canada’s intended implementation of FATCA legislation may prove invalid because of definition of “financial institutions.”
Americans abroad find citizenship too taxing to keep
USA Today (8 Mar 2014)
Two extraterritorial US persons in Switzerland tell their stories. One has already renounced, and the other is considering that action. US citizenship renunciation totaled 3000 in 2013, a 221% rise from the preceding year. Two tax professionals describe the difficulties and costs of filing. “A poll conducted by the de Vere Group, a financial consultancy, late last year revealed that 68% of American expatriates have considered giving up their U.S. citizenship as a result of FATCA.”
James George Jatras
Enforce Canadian law, not FATCA
Toronto Star (3 Mar 2014)
A Washington-based lobbyist sees Canada’s capitulation to FATCA’s “expensive, invasive and anti-sovereign demand” as unnecessary. He refutes Canada’s excuses under five points of failure: to lobby, to negotiate the best deal, to protect privacy, to avoid costs, to obtain reciprocity.