$60,576 more needed in 29 days to make the May 1 2015 payment for Canadian FATCA IGA lawsuit/ Il nous reste 60,576 $ à ramasser pour notre poursuite judiciaire


UPDATE April 1 2015: 29 DAYS to make May 1 payment: see also LITIGATION UPDATES— in particular, PLEASE REVIEW events and milestones from February 10 to the present.


— Please DONATE to www.adcs-adsc.ca (ADSC en français).

As already mentioned in “Litigation Updates” and in our ADCS blog — our litigator Joe Arvay is still preparing a new application for an additional trial that gets around a delay imposed by Government. On April 16 attorneys on both sides will have a meeting to address Government delay (caused by review of 100,000 plus documents) and its inability to keep to the normal timelines. Our activity now is primarily focused on the new trial and strengthening selected arguments that do not depend on review of Government documents. We cannot release any information on this application until it is filed in court and are moving as quickly as possible.

We have also acknowledged, from the beginning of our lawsuit, that litigation will be very expensive and will take time, but understand that many of you want immediate action and will find any delay unacceptable. As we have said (from our ADCS blog): “It’s important that you realize that our FATCA lawsuit is going to be a marathon and not a sprint. The Government of Canada will spare no expense (using your money) to defend it’s “right” to implement U.S. law on Canadian soil. But, do NOT get discouraged.”

[Thanks to today's many-time repeat donor from Western Canada]

Please DONATE to www.adcs-adsc.ca (ADSC en français).


— Please support GINNY AND GWEN’S LAWSUIT, and help return SOVEREIGNTY to all countries that have given into the FATCA law, and SEND DONATIONS by cheque, cash (no return address if you are afraid), PayPal, and transfers. Vos dons de $ 25 sont utiles.

On August 11, 2014, Litigator Joseph Arvay filed a FATCA IGA lawsuit in Canada Federal Court on behalf of Plaintiffs Ginny  and Gwen, the Alliance for the Defence of Canadian Sovereignty (en français), and all peoples. See Alliance’s Claims, Government response, our Alliance blog, and litigation updates.

Forbes acknowledges our lawsuit: “Global transparency is admirable, but in many cases America is perceived as a bully, one treading on the sovereignty of other nations. Canadians recently filed suit to block FATCA and prohibit handover of U.S. names to IRS. The legal claim challenges the Inter-Governmental Agreement under which Canada can turn over private bank account information.”

Your support is requested by Plaintiffs Ginny and Gwen of Ontario, Canada, who accept personal risk including possibility of personally paying portion of Government legal costs if we lose lawsuit.

Please DONATE to www.adcs-adsc.ca (ADSC en français).

— Ne laissons pas notre adversaire gagner.

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Renouncing US citizenship? How the S. 877A “Exit Tax” may apply to your Canadian assets – 9 Parts

reposted from: Citizenshipsolutions blog

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There is much discussion of the U.S. rules which operate to impose taxation on the residents of other countries and income earned in those other countries. You will hear references to “citizenship taxation”, “FATCA Canada“, PFIC, etc. It is becoming more common for people to wish to relinquish their U.S. citizenship. The most common form of “relinquishment is renunciation”. The U.S. tax rules, found in the Internal Revenue Code, impose taxes on everything. There is even a tax on “renouncing U.S. citizenship”. I don’t mean the $2350 USD administrative fee which everybody has to pay. (Isn’t that really a tax?). I mean a tax on your assets. To be clear:
You must pay a price to NOT be a U.S. citizen.
This tax is found in S. 877A of the U.S. Internal Revenue Code.
It’s defined as the:
“Tax responsibilities of expatriation”

Few people are aware of this tax. Fewer still understand how it works. As FATCA operates to enforce U.S. taxation on many Canadian citizens, and increasing numbers wish to NOT be U.S. citizens, the importance of understanding the U.S. “Exit Tax” increases.

It is particularly important to understand what triggers the “Exit Tax”. You will be subject to the “Exit Tax” if you are a “covered expatriate”. You must know what that means and why, sooner or later, everybody will become a “covered expatriate”.
The “Exit Tax” is not a simple “token tax”. For Canadians, the tax can be a significant percentage of their net worth. Furthermore, the tax is payable NOT on actual gains, but on “pretend gains”. (Where would the money come from to pay the tax?)
Hang on to your seats. You will shocked, amazed and horrified by this.
Since the advent of FATCA in Canada, this issue is increasingly important.*
To be forewarned is to be forearmed!
This is a 9 part series which is designed to provide you with some basic education on:

How the U.S. S. 877A Exit Tax rules work; and
How they particularly affect Canadians with a U.S. birthplace, who lived most of their lives in Canada.
This will be covered over a 9 day period in a “9 part” series.
Although this series is beginning on “April Fools Day”, I assure that this is NOT a joke.

The 9 parts are:
Part 1 – April 1, 2015 – “Facts are stubborn things” – The results of the “Exit Tax”
Part 2 – April 2, 2015 – “How could this possibly happen? “Exit Taxes” in a system of residence based taxation vs. Exit Taxes in a system of “citizenship (place of birth) taxation”
Part 3 – April 3, 2015 – “The “Exit Tax” affects “covered expatriates” – what is a “covered expatriate”?”
Part 4 – April 4, 2015 – “You are a “covered expatriate” How the “Exit Tax” is actually calculated”
Part 5 – April 5, 2015 – “The “Exit Tax” in action – Five actual scenarios with 5 actual completed U.S. tax returns.”
Part 6 – April 6, 2015 – “Surely, expatriation is NOT worse than death! The two million asset test should be raised to the Estate Tax limitation – approximately five million dollars – It’s Time”
Part 7 – April 7, 2015 – “The two kinds of U.S. citizenship: Citizenship for immigration and citizenship for tax”
Part 8 – April 8, 2015 – “I relinquished U.S. citizenship many years ago. Could I still have U.S. tax citizenship?”
Part 9 – April 9, 2015 – “Leaving the U.S. tax system – renounce or relinquish U.S. citizenship, What’s the difference?”
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Around the World America’s Taxman Cometh with FATCA

A writer for Huffington Post nails it with an article Around the World America’s Taxman Cometh.

Wendy N. Powell writes:

Who can argue with a process to catch tax shelters in the proverbial Swiss bank account? Not many, but this includes a world-wide dragnet that snags innocents resulting in little known serious consequences for hard working Americans and their families living and working overseas.

She then quotes Mark Mazur, the Treasury Department’s assistant secretary for tax policy who said: said:

The government’s new enforcement was intended to help make sure all taxpayers pay what they owe “regardless of where they live.”

Rather than just accepting the tax cheat fair share rhetoric like so many journalists do, Ms. Powell tries to see some of the real issues:

But “What they owe”, how they can invest, and do their banking is the resounding question.

The U.S. is the only industrialized country that taxes its citizens on their world-wide income, no matter where they live And FATCA has been referred to as a range of: protection from tax shelters, a net to catch people who don’t want to report their income, all the way to pure fascism.

It is hard to fathom walking in the shoes of an American abroad experiencing the effects of the Foreign Account Tax Compliance Act (FATCA) Friends from social media have shared stories of serious difficulties handling their finances and investments and “divorce overseas style” with quite literal gut-wrenching effects.

There is bitter resentment of new U.S. tax laws but lasting affection for their homeland. This includes many American veterans that are renouncing their citizenship because they cannot conduct their financial business any longer; bank accounts, retirement accounts closing, mortgages rescinded and denied. And no American veteran should ever consider renouncing American citizenship due to invasive tax and reporting obligations.

Bitter resentment. Yeah, you might say that. I call it something else that I won`t post here. And I and many others do not have lasting affection for the U.S. It is not even the homeland for many caught up in this mess!

Residents of Stanstead Quebec Wake up to Their OMG Moment

This past Monday a radio interview (in English) on CBC Radio Quebec aired; seemingly an an introduction to FATCA for this little town right on the border with Vermont. One can clearly hear the fear and confusion in some of the residents interviewed, including the mayor.

While some of the information is not quite accurate, the situation they face is something we understand all too well. The CBC is interested in comments, which gives us a chance to reach out to fellow Canadians in Quebec who are afflicted with this problem.
Phone: 1 888 691 3476
Email: quebecam@cbc.ca

You can see some of the comments on their Facebook page:

John Richardson was interviewed as well and has offered some thoughts for them to consider:

We have had virtually no contact with anyone in Quebec other than a few via Info Sessions in Montreal/at McGill last year.Please consider commenting at Facebook, tweeting and doing whatever you can to reach out to get this message across. And please don’t forget to mention the ADCS-ADSC lawsuit! Thanks!

What FATCA Did to a U.S. Military Veteran

Here is the story of what FATCA did to US Military Veteran Daniel Kuttel (aka Swiss Pinoy). veteran_proud

Daniel wrote this to Jubilee Network which has been promoting the myth that FATCA is intended to end corruption and that we are all the cause of global poverty.

Dear Mr. Hanauer,

I risked my life serving in the US military to defend America. While on active duty, I served in an active deployment unit which was ready to be deployed anywhere in the world within 72 hours to defend America. Have you ever risked your life for America, for the American people or even for an American living abroad?

After serving in the US military, my car broke down in the Nevada desert while I was moving to California, so I sold it for a night in a hotel room since I didn’t have any money to repair it. I then put my belongings into boxes and took the greyhound bus, from which my bicycle was stolen. Later, I got a general discharge from the Army reserves because I didn’t have the money to buy a car to report for duty! It wasn’t until many years later that I was able to afford a salvaged Geo Metro with a motor hood that was fastened down with a loose bolt! Once while driving along the freeway, the bolt came lose and the hood banged upon the front windshield, blocking my view. I was lucky to be able to pull over without getting into an accident.

Then, I lost my job, car and home during the dot-com crisis. I might have been able to stay in America if the check to finance the visa for my wife to join me hadn’t bounced since my bank account had been cancelled. My retirement savings was also cashed and taxed without my approval. Being unable to find work in the glutted job market, I put some clothes into a backpack and went job-hunting in Europe. Eventually, I found work, repaid my debts in the US and saved to be able to get a mortgage. For many years, my wife and I did not have any children because I feared losing my job again and since we struggled financially.

Living in Switzerland, I continued to fight for America, debating for years the most controversial and heated conflict. Often, I was the only American voice speaking out diplomatically against anti-American hostility. I provided a lone American voice which challenged negative stereotypes about Americans. I donated thousands of hours of my time for America and was never given a single penny in return. I didn’t even get any thanks or recognition. My time spent for America was for free and for my own personal satisfaction with no gain of any kind.

In 2012, my mortgage was soon to expire, so I scanned the market for refinancing options and learned that most banks were rejecting clients with US citizenship due to FATCA. FATCA caused Americans to be seen as being a risk. So, I contacted HUD and the VA, but they replied that they do not help Americans overseas. I then contacted various US politicians, but they either didn’t respond or they stated that anything that they did for US expats would be used against them by the opposing party. Other people accused me of being a tax cheat or having a poor banking record.

Can you imagine how it feels to be discriminated against for being American because of the US government, after having spent decades fighting for America? Can you even attempt to begin to picture how angry I am?

Since I didn’t want to risk losing my home a second time, since nobody cared about me or was willing to help, I gathered the strength to renounce US citizenship. After doing so, my bank reported in the press that it had closed the bank accounts of all of its US clients that it was able to contact. By renouncing US citizenship, I had thus saved my mortgage. I didn’t lose it a second time. I also wasn’t thrown out of any banks again.

After renouncing, I spent many free hours of my time helping and supporting Americans living abroad. Yet, instead of challenging non-American hostility against Americans, I challenged American hostility against Americans. Again, I’m was never paid to do this, I gained nothing from it and never received any kind of recognition or thanks from the US government. Yet, I’m still fighting for America as a non-US citizen since I feel for the people who are suffering and since I know that this situation is not right.

If you were to put yourself into my shoes, could you even begin to imagine how this feels? There are no words to describe this. I am angry, very angry. Yet, I continue to do what I have always done, and that is to fight for what is right, against all the odds.

You know, there is one thing that my sister would really want, and that would be for me to live near her in Colorado. Yet, I cannot do so since I am no longer a US citizen, due to FATCA. My family is divided. My daughter is a US citizen but not my son.

I know that you want FATCA more than anything in the world, but is the pain and suffering caused from such really worth it? If your foundation protects the poor from predatory financial behavior, then where have you been? I’ve been seeking your help for many years now and now that I’ve finally found you, will you really be true to the efforts of the Jubilee Network? I’m hoping to hear from you again.

Best regards,

Daniel Kuettel

It’s Real -Amendment to Budget Resolution Sets Stage for Repeal of FATCA

[Congressional Record Volume 161, Number 50 (Wednesday, March 25, 2015)]
[Pages S1901-S1956]
From the Congressional Record Online |through the Government Printing Office [www.gpo.gov]


SA 621. Mr. WICKER submitted an amendment intended to be proposed by
him to the concurrent resolution S. Con. Res. 11, setting forth the
congressional budget for the United States Government for fiscal year
2016 and setting forth the appropriate budgetary levels for fiscal
years 2017 through 2025; which was ordered to lie on the table; as

At the appropriate place, insert the following:


The Chairman of the Committee on the Budget of the Senate
may revise the allocations of a committee or committees,
aggregates, and other appropriate levels in this resolution
for one or more bills, joint resolutions, amendments,
amendments between the Houses, motions, or conference reports
relating to fairness of United States taxpayers, which may
include the repeal of the provisions commonly known as the
Foreign Account Tax Compliance Act, by the amounts provided
in such legislation for that purpose, provided that such
legislation would not increase the deficit over either the
period of the total of fiscal years 2016 through 2020 or the
period of the total of fiscal years 2016 through 2025.

Hat Tip to Tim