According to The Sun, IRS Targets Yanks In Canada.
I think this relates to the regs which were just released. Are these the ones Flaherty said he was “happy” with? I haven’t seen the regs yet, but I wanted to post this.
Despite the Sun headline, it is my understanding this does not just apply to Canada, but is, of course, worldwide.
Before anyone panics, remember, CRA will not collect any penalties for IRS for failure to file a report with IRS. CRA will not collect any tax liability on any Canadian citizen even if that person was also a US citizen at the same time.
Also remember what Steven Mopsick said. IRS is unlikely to pursue those of us who have been citizens elsewhere for years or decades. Michael J Miller said those of us who expatriated before 2004 were not required to advise DOS.
Calgary411 has posted a Moody’s Announcement at Brock. There is discussion going on there. Calgary’s conclusion is “Good luck roping more in.
For those of us who have been around, this is really nothing new. More scare tactics. It’s going to do exactly that for those who are first learning of it.
This is going to cause a stressful long weekend for a lot of people. If they find their way here, we need to reassure them. Don’t Wake The Sleeping Bear.
OK, as a farewell, or at least “au revoir,” post from me (now that my wife got her CLN today!!!)
This post is by repeated request from Blaze, and out of respect and honour to her, what’s she done for others, and what she’s gone through. It was one of my off-the-cuff throwaway remarks, but she liked it so I’m posting it here.
On another thread last week, Badger wondered what happened to the opinion piece that Maura Drew Lytle of CBA had advised Brock had been submitted to Washington Post.
I sent an e-mail to Maura on Friday. This morning, I received this reply from her.
Yes, we did submit an opinion piece to the Washington Post about FATCA to try to get the attention of U.S. policymakers as part of our strategy to fight for changes to FATCA. They are the ones who have the ability to make changes. Unfortunately, the newspaper did not publish the piece but I have attached it here for your information. Advertising in major U.S. newspapers is prohibitively expensive: this is one of many issues that we work on and we don’t think that it would be the best use of resources. Instead, we are focusing on discussions with the Canadian government and U.S. authorities for a solution that will be more palatable for the situation in Canada. As you’ve seen in my post on the Isaac Brock Society forum, our president also talked about FATCA in speeches this spring and we will continue to look for other opportunities to raise our concerns.
I reiterate again that Canadian banks are opposed to FATCA and are well-aware that FATCA, as it is currently written, may contradict Canadian legislation. Discussions are on-going so it is too early to jump to conclusions about what Canadian banks may or may not be required to do to comply with FATCA. We continue to work hard behind the scenes to find a solution to this issue.
Best regards, Maura
Maura Drew-Lytle | Director, Media Relations and Communications | Directrice, Relations avec les médias et Communications
Maura attached a copy of the opinion piece by CBA President Terry Campbell.
Countries on an irregular basis establish or amend tax treaties with other countries. The Canada US treaty is now in its fifth protocol.
Although I’ll mention a few items for the Canada US treaty, the discussion is open worldwide to treaties between the US and the country of your residence.
For the moment, I’ll assume the US refuses to budge on citizenship based taxation.
For the Canada US treaty, I’d like to see an exemption for Registered Disability Savings Plans ( RDSP), Registered Educational Savings Plans (RESP) and Tax Free Savings Plans (TFSA).
Of course, the IRS would likely develop long and complicated forms for reporting each of these items, but at least there would be a way to exempt them from the US taxman.
There is a bit of anxiety concerning what happens at the US border once you have a CLN or once you’ve applied for one. Or for that matter, if you have a Canadian passport that shows a US birthplace, have no US passport and don’t want one, and haven’t yet decided whether a CLN is a good idea for you. If you’re one of any of these concerned people, this post and thread are for you. Continue reading