Douglas Todd: Ameri-Canadians point fury at Uncle Sam

2014/09/08 Leave a comment

Good column by Douglas Todd on American Canadians and the impact of FATCA:

But, except for writing this column, I basically never think of myself as having American origins. If someone asks about my ethnic background, I tend to emphasize my roots in England, Ireland and Wales. As a result of all these cultural forces downplaying what The Canadian Encyclopedia calls “overt displays of American consciousness,” many don’t realize some of the most influential Canadians were born in the United States.

They include economist C.D. Howe, CP Rail tycoon William Van Horne, White Spot founder Nat Bailey, fiction writers William Gibson, Robert Munsch and Jane Rule, journalists Barbara Frum, Jack Todd and Jeffrey Simpson, politicians Diane Ablonczy, Jim Green, Stanley Knowles and Elizabeth May, political commentator Tom Flanagan, scholar Jane Jacobs, athletes Donald Brashear and Jarome Iginla and actors Lauren Holly, Robin Thicke, Matt Frewer and Colm Feore.

Now — with FATCA causing investigators to scour the globe to hunt down more than seven million broadly defined “U.S. persons” it claims should be paying taxes to Uncle Sam — even more people in Canada with U.S. connections are finding another reason to bury their American identities.

Instead of just trying to be sensitive to fellow Canadians’ “vague hostility” towards the U.S., many Ameri-Canadians are experiencing an increase in their fury toward Uncle Sam.

Douglas Todd: Ameri-Canadians point fury at Uncle Sam.

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The Franco-American Flophouse: US Citizenship Renunciation Fees to be Raised 422%

2014/09/02 Leave a comment

Victoria Ferauge on the increase in fees for citizenship renunciation (looks like a tax grab to me):

Well, its a complicated labor-intensive procedure:

“The CoSM demonstrated that documenting a U.S. citizen’s renunciation of citizenship is extremely costly, requiring American consular officers overseas to spend substantial amounts of time to accept, process, and adjudicate cases. For example, consular officers must confirm that the potential renunciant fully understands the consequences of renunciation, including losing the right to reside in the United States without documentation as an alien. Other steps include verifying that the renunciant is a U.S. citizen, conducting a minimum of two intensive interviews with the potential renunciant, and reviewing at least three consular systems before administering the oath of renunciation. The final approval of the loss of nationality must be done by law within the Directorate of Overseas Citizens Services in Washington, D.C., after which the case is returned to the consular officer overseas for final delivery of the Certificate of Loss of Nationality to the renunciant.”

And demand for this service is strong yep, they say that.  450 USD, they say, was already below cost and they are just raising the fee in order to not lose more money on the service.

Now I’m just an old lady and I don’t pretend to be the brightest crayon in the box but if the goal here is to “break even” then they are looking at this all wrong.  Read the outline of the procedure again. Does that sound efficient to you?  Just the assumption that any US citizen showing up to renounce his US citizenship doesn’t really understand what he/she is doing and has to have it explained ad nauseum intensive interviews? and then be sent off to a corner like a little kid to reflect on it before being allowed to come back and do the deed, is just ridiculous.  Right there Id say just treating people like adults and assuming that they do know their own mind would save a lot of time, money and hassle all around.

And the narrative that will come out of this fee raise is not likely to focus on “cost recovery” at US consulates around the world but on what is going to be perceived as a punitive act on the part of the US government.  It looks like they are so embarrassed by the renunciation numbers and the lines to renounce at the US consulates that they are looking for ways to reduce or slow down the demand.  Think about that.  Has the state of US citizenship in the world really come to the point where the US government thinks that Americans have to be actively discouraged from renouncing?

The Franco-American Flophouse: US Citizenship Renunciation Fees to be Raised 422%.

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Americans Line Up to Renounce US Citizenship in Toronto

2014/08/29 1 Comment

More on the US FATCA and impact on Canadians:

Canada finalized its IGA earlier this year. It requires Canadian banks send the account information of customers with U.S. citizenship to the Canada Revenue Agency CRA. The CRA then forwards that information on to the IRS, a tidy workaround to Canadian laws forbidding banks from sending that information directly to a foreign government.

But attorney John Richardson calls the information-sharing deal a “mechanism for the United States to extract after-tax Canadian capital out of the country.”

“What the U.S. is really doing is claiming the right to levy taxes on people who don’t live in the United States on income that is in no way connected to the United States. It simply cannot be tolerated,” said Richardson.

Many Canadians don’t even realize that the U.S. considers them taxable citizens, nor do they want U.S. citizenship, he said. That’s because the U.S. considers those born to American parents outside the country American, or anyone born in the U.S. American, even if they live their whole life in another country, unaware they are accumulating a mountain of fees and taxes.

The IRS has changed its position slightly to wave the massive penalties for “accidental Americans” and those unaware they needed to file with the IRS. But they are still required to pay taxes.

Americans Line Up to Renounce US Citizenship in Toronto.

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The Franco-American Flophouse: FATCA Lawsuit Filed in the Federal Court of Canada

2014/08/26 Leave a comment

Victoria Ferauge, an American expatriate in Paris and active on the FATCA issue, commenting on the Canadian court case (see Virginia Hillis, Gwendolyn Deegan sue Ottawa over new FATCA tax rules):

And here we finally come to the Canadian lawsuit.  The plaintiffs claim that FATCA as it is being implemented in Canada violates the Canadian Charter of Rights and Freedoms which among other things, shields Canadian citizens from unreasonable search and seizures and assures equal protection/non-discrimination in the application of the law. Ginny and Gwen, two very courageous women, are “Accidental Americans”.   They were born in the US but have lived in Canada most of their lives and they not willing to be reduced to semi-citizenship in Canada.  They are Canadian, they live in Canada, and US status should make no difference whatsoever in what rights they have under Canadian law.  Period.

If you wish to argue otherwise, please think hard about the implications of that.  Could a law made in Mexico that violates the rights of Mexican-Americans under the US Constitution be nevertheless applied to them with the blessing nay, the full participation and enforcement of the US government?   And it is all the more troubling when one sees all the situations where individuals do contest the attribution of citizenship  without their consent by a country they dont live in and dont consider themselves to have duties and responsibilities to. All dual citizens everywhere in the world should pay close attention to how this shakes out.

If any of you out there are interested in supporting this cause there are a couple of ways you can help.  Ginny and Gwen have really gone out on a limb here by going public and they could use your moral support.  You can send them a note here.   Another, of course, is through a donation which you can make here.

The Franco-American Flophouse: FATCA Lawsuit Filed in the Federal Court of Canada.

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Virginia Hillis, Gwendolyn Deegan sue Ottawa over new FATCA tax rules

2014/08/16 1 Comment

For those who follow implementation of the US FATCA, this Canadian court case will be of interest. My understanding from those who follow FATCA closely, the deal Canada struck with the US is more protective of Canadian rights than that signed with other countries (see The Franco-American Flophouse for regular updates):

The women are American-born dual citizens of Canada and the U.S who left the states in childhood and have lived in Canada for decades. They argue the recently enacted Foreign Account Tax Compliance Act violates their rights as Canadians under the Charter Of Rights And Freedoms.

Windsor, Ont., resident Virginia Hillis, 68, and Torontonian Gwendolyn Louise Deegan, 52, stepped up as the figureheads of a fight that has hundreds of thousands of Canadian residents fuming.

Both women were born in the U.S. but have never worked south of the border, and as such have never paid or filed U.S. taxes. Indeed, neither has ever had or used a U.S. passport.

“Gwen … has travelled to the United States in the past and has been questioned by a border officer as to why she, a person with a United States birthplace, does not have a United States passport to travel into and out of the United States, to which she always replies: Because I am a Canadian,” the pairs statement of claim reads.

Nonetheless, under the agreement that Ottawa agreed to comply with in February, Canadian banks are now obliged to hand over names and account numbers to the IRS of any clients that Uncle Sam suspects are U.S citizens.

Virginia Hillis, Gwendolyn Deegan sue Ottawa over new FATCA tax rules – Business – CBC News.

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