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Archive for the ‘Legal’ Category

2013 Apr 22 – Reed

Max Reed
The ticking time bomb of tax liability for Americans in Canada
Canadian Lawyer (22 Apr 2013)


Eventually FATCA will affect most of the one million or so noncompliant US persons resident in Canada, who remain ” blissfully unaware of the ticking time bomb of U.S. tax liability.” Reed is co-author with Dick Pound of Tax Guide for American Citizens in Canada.

Written by usxcanada

22 April 2013 at 6:00 am

2013 Apr 4 – New

New US tax law may negatively affect Canadian retirement plans
Moodys Tax Advisors (4 Apr 2013)


Unless proposed regulations are changed a new 3.8% US taxation will likely apply to RRSPs, CPP, and other pension income — with no opportunity for tax credit offset.

Written by usxcanada

4 April 2013 at 6:00 am

Posted in Canada, Legal, Uncategorized

2013 Mar 19 – Marino

Alexander Marino
Renouncing your U.S. citizenship: Is divorcing Uncle Sam right for you?
Moodys Tax Advisors (19 Mar 2013)


[40 footnotes] This summary of renunciation considerations pulls together a variety of aspects and is worth a read. Bear in mind that the writer and his outfit want to generate revenue from “assisting” you. Once the tax aspects are understood, the process of obtaining severance from the United States usually should not require “professional” services. Cast a cautious and jaundiced eye on the listing of US citizenship “benefits” in Section B. The only one of substance seems to be (d), the dubious “freedom” to seek employment in the United States.

Written by usxcanada

19 March 2013 at 6:00 am

Posted in Legal, Uncategorized

2013 Jan 20 – Christians

Allison Christians
Why FATCA is a tax treaty override
Tax, Society & Culture (20 Jan 2013)


“FATCA overrides the existing [Canada-U.S.] tax treaty by significantly limiting a material benefit thereunder, and the only valid way to fix that override is to change the treaty itself, by entering into a new protocol.”

Written by usxcanada

20 January 2013 at 6:00 am

Posted in Legal, Uncategorized

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

2012 Oct 7 – Berg

Roy A. Berg
Do not get out of IRS’s tax amnesty programs without knowing the facts
Moodys Tax Advisors (7 Oct 2012)


The relationship of existing voluntary disclosure programs to “the new streamlined procedure” is explored at length.

Written by usxcanada

7 October 2012 at 6:00 am

Posted in Legal, Uncategorized

2012 Oct 1 – Schneider

Bernard Schneider
The end of taxation without end: a new tax regime for U.S. expatriates
Virginia Tax Review 32:1 (1 Oct 2012) 1-76


Among other things, this comprehensive article with 392 footnotes will serve as a bibliography to previous literature on the topic. Schneider concludes that the obvious resolution, cessation of extraterritorial taxation of U.S. person, is not “politically viable,” and then moves to propose an exit tax. Review of the existing situation covers (1) history of citizenship-based taxation (2) numbers of persons affected and tax involved (3) types of expatriates (4) current tax treatment of nonresidents (5) increasing compliance cost of being a U.S. taxpayer abroad (6) arguments for and against worldwide taxation of expatriates (7) compliance and enforcement (8) current exit tax regime.

Written by usxcanada

1 October 2012 at 6:00 am