Over at Brock, George posted some information from U.S. Department of State on dual citizenship which is very useful to us. It says:
“b. It is a generally recognized rule, often regarded as a rule of international law, that when a person who is a dual national is residing in either of the countries
of nationality, the person owes paramount allegiance to that country, and that country has the right to assert its claim without interference from the other country.”
“e. U.S. Policy on Dual Nationality: When a U.S. citizen is in the other country of their dual nationality, that country has a predominant claim on the person.
So, there we have it. Even the United States says we owe our “paramount allegiance” to our country of residence. That is exactly how most of us are living our lives.
Our countries of residence have “the right to assert its claim without interference from the other country.”
So, why aren’t Canada, France, Switzerland, New Zealand, China, Russia, Brazil and India telling the U.S. to just FATCA off? Our “paramount allegiance” is to those countries and those countries have a “predominant claim” to us.