Monthly Archives: July 2015

“The Shot Heard Round The World” Live from

(Adapted from Emerson – “Concord Hymn”)

FATCA comes September’s end
The threats of Congress now unfurl
Embattled expats must defend, by
Firing the shot heard round the world!


Join Us! Watch it live!

This is the full YouTube version.


WHEN: Tuesday, July 21, 2015-5:00 – 6:00 pm EDT
WHERE: – “Voters Echo”
WHAT:The Shot Heard Round the World”Citizenship Taxation is a CRISIS for US Persons Worldwide
WHO: Host – Bahman Yazdanfar
with John Richardson, Peter W. Dunn & Trish Moon
images (1)A recent U.S. Senate Finance Committee study failed to issue any recommendations to address the intolerable treatment of the 8 million “U.S.Persons” (and their families) living abroad. One noted tax-lawyer implied that the Working Committee “is willing to state that these concerns need to be considered however,is not yet willing to say there is a crisis.”

The U.S. Senate Finance Committee response to expats: “NOT a Crisis”

Our response: See You in Court


Tweet your questions in advance to: @CBTLawsuit

With the hashtag: #CBTLawsuit
Please share this with all your family & friends especially FB & Twitter!

Republicans Overseas File FATCA & FBAR Lawsuit

Republicans Overseas Action today filed a lawsuit in U.S. District Lawsuit Court in Ohio.

You can read:

ROA Press Release

ROA Ten Detailed Points

and ROA Description of Each Plaintiff

In addition to Senator Rand Paul, you will note some familiar names of plaintiffs–including Dr. Stephen Kish and Daniel Kuettel.

It’s been a long time coming, but finally someone is challenging FATCA, FBARs and the IGAs in U.S. Courts–including requesting an injunction.

UPDATE JULY 15, 2015: You can read actual Complaint

No Crisis? “See You In Court.”

Tricia Moon has responded on Jack Townsend’s blog where he suggested U.S. Senate did not listen to submissions on citizenship-based taxation because they “are not yet willing to say there is a crisis.

Tricia’s words are powerful. I post them here with her permission.

I came to know of the situation involving expats in late 2011. At that time, this blog was one of the only places to come for reliable information. I was much too frightened to be anything more than a lurker. I had never been one to participate online or engage in any sort of “cause.”

I renounced in 2012. The only way for many of us to deal with the anger and feeling of betrayal was to fight back. A completely American trait. I have lived in Canada more than 33 years and came due to marriage. I am an original “Brocker” and am the
Secretary-Treasurer for the Alliance for the Defence of Canadian Sovereignty.

ADCS-ADSC put together a massive submission to the Senate Finance Committee; a total of 7 separate parts. See: (….

The comments and stories of American expatriates is nearly 200 pages, demonstrating real-life circumstances of people affected by the U.S. hunt for ”tax cheats.” See:
& videos:… ).

Needless to say, the lack of any real, substantial indication of change for American expatriates is deeply disturbing. As I understand it, there was a total of 347 submissions to the International Working Group. Seventy-five percent of the submissions are from individuals. On top of the dismay created by the SFC’s insignificant “nod” to the plight of expats, now we hear that those 260 submissions (compared to the estimated 7.6 million expats abroad), indicate this is not a crisis and therefore, it’s perfectly reasonable for the U.S. government to sit on this until they recognize one.

Surely, one can understand that this is much more than a “numbers” game. Not all of those 7.6 million are adults. Not all of those people speak/write English well enough to feel comfortable making a submission. Not all of those 7.6 million know they are about to be
exposed by FATCA. And many are probably still too frightened to say anything with their name attached to it. It must be understood that the number of submissions speak for thousands more. In no way can the number of submissions be a sole factor in determining the depth of the problem.

As to whether there is a “crisis”, I ask that the following be considered:

Ø more bank accounts being closed; France is now the focal point

Ø cancellation of mortgages continues

Ø U.S. taxation of tax-deferred accounts (in countries of residence)
(in Canada two types of accounts are matching grants by the Canadian government; this amounts to a tax directly on the Canadian people)

Ø capital gains taxation on principal residences in countries where no capital gains tax is imposed (and no interest for mortgages is deductible as it is in the U.S.)

Ø unwarranted insistence that accidental Americans with no meaningful ties to the U.S. other than birth are liable for exactly the same tax and information reporting requirements as Americans who lived in the U.S. for decades

Ø inability of parents/guardians/trustees to renounce for those unable to form intent

Ø disproportionate cost involved in tax compliance (compared to Homeland Americans)

Ø disproportionate information reporting requirements (compared to Homeland Americans)

Ø the undeniable psychological effects including:

§ destroyed marriages

§ people with serious stress, anger and depression, some are suicidal

§ people terrified they will never be able to cross the border to care for elderly parents, etc.

§ people humiliated by the requirement to report their legitimate financial accounts to FIN CEN

§ people labeled as “traitors” etc for trying to protect their “alien” families by renouncing/ relinquishing

I would like these committees to ask the people who HAVE been affected, “Was this a crisis for you and your family?” Or would they say to such people, “I’m sorry but unless there are thousands upon thousands of you writing to the Committee, your misery doesn’t matter.”

They have, in fact, just said exactly that.

There have been endless letters, emails, visits to Washington, forums, information sessions, media coverage, a large presence in cyberspace etc etc etc. It is abundantly clear:

The US government could care less about the American Diaspora and as far as they are concerned, it is perfectly acceptable to simply let this continue.

This situation is incomprehensible. The long, long history of no enforcement of these requirements, nor due diligence of any kind.

The misapplication of FBAR, designed to be applied to resident Americans with foreign accounts. The hideous situation of OVDP 2009 and FAQ#35.The horrible penalties that were inflicted on those who tried to come forward and “do the right thing.” Ratio of penalty for tax owed: 10th percentile (“minnows”) -129%;
90th percentile (“whales”)- 4.17%.

Douglas Shulman’s endless threats and humiliating manner. Douglas Shulman’s arrogant attitude that he need not respond to a TAD.

The outrageous extra-territorial behavior of the US requiring all other countries of the world to pass laws to break their own privacy laws or else a 30% sanction applied.

The absolute myth that expats have any real representation in Congress with the reality that this is indeed “taxation without representation.”

And then there is Mr. Schumer: “Nearly 10,000 people in the last 10 years have renounced their citizenship. Not a single one has been penalized. They will be.”

It must be remembered (and matters very much), that the majority of expats are law-abiding and tax-compliant where they live. Where is the need for all this demeaning treatment? Did it ever occur to someone in Treasury, the IRS, anywhere, that they might just let us
know and ask first? There would always have been time later for all the punishing.

This seems endless and is nearly the last nail in the coffin. For those retired or close to it, there is virtually no chance of change in their lifetime. Wait another 30 years? Even 20 will not cover it.

And many more will look at this and say “It’s time to get out.” There really are no options for these people.

In Cook v Tait, the standard (and very tired) justification for citizenship-based taxation, Justice McKenna writes:

“In other words, the principle was declared that the government, by its very nature, benefits the citizen and his property wherever found and, therefore, has the power to make the benefit complete.”

I don’t see it. I just don’t see it.

And our answer to the U.S. Government, as stated many times after the release of this report is:

“See you in court.”

We’ve had a few posts in the recent past, addressing different aspects of the upcoming election in October. For anyone wanting to keep track of our perspective of all things “Harper Govt:”

Canadian Federal Election: It’s Time to Throw the People Who Betrayed Us Out of Office

Hey Steve

Help Me Keep My April 5 Promise Revisited-We Will Never Forget the IGA Betrayal by the CONs

And now we have an excellent post explaining how “first past the post” works. Maybe I’ll link to a page in the next few days to keep all these together as references all in one place….

cross posted from

Prologue – From “Message in a bottle 2: Democracy, the appointment of judges and the Canadian Charter of Rights and Freedoms

The post included:

I was reminded of a post that I wrote on this very topic during the 2011 Canadian Federal Election campaign (prior to FATCA and President Obama’s FBAR Fundraiser). You may recall that the Harper Government went into this election with a minority government. The reasons that he won a majority government exist today. The reality is that the Conservative Party of Canada – led by Stephen Harper has an excellent chance of retaining their majority government. That’s the price of the “first past the post” electoral system.

The “First past the post electoral system – How does it work and how does it encourage non-representative democracy?”

The video in the above tweet explains how the “First past the post system” works.

The “Conservative Government” of Prime Minister is extremely unpopular. Yet, it has a “majority government”. How can this be? If you watch the video in the above tweet, you will see an explanation of how “First past the post” works.
Continue reading

Coming: CBT Lawsuit Against US Government

There is a post at ADCS that a U.S. lawsuit against citizenshhip-based taxation is coming in the United States.

The following is a cross-post from ADCS.

#CBTLawsuit – First report of Senate Finance Committee brings citizenship taxation lawsuit one step closer
Posted on July 8, 2015 by adcsovereignty

As reported at the Isaac Brock Society, the “International Taxation Committee” has released it’s report on tax reform. In spite of the fact that more than 3/4 of the submissions were from Overseas Americans, the committee, acknowledged, but failed to address the intolerable treatment of Americans abroad.

As barely, a footnote, the Committee ended with:

F. Overseas Americans

According to working group submissions, there are currently 7.6 million American citizens living outside of the United States. Of the 347 submissions made to the international working group, nearly three-quarters dealt with the international taxation of individuals, mainly focusing on citizenship-based taxation, the Foreign Account Tax Compliance Act (FATCA), and the Report of Foreign Bank and Financial Accounts (FBAR).

While the co-chairs were not able to produce a comprehensive plan to overhaul the taxation of individual Americans living overseas within the time-constraints placed on the working group, the co-chairs urge the Chairman and Ranking Member to carefully consider the concerns articulated in the submissions moving forward.

What does this mean?

At a bare minimum it means that:

1. The “International Committee” views its purpose as dealing with “corporate interests” and not “individual interests”.

2. The “International Committee” views DNA Americans as less important than “Corporate Americans”.

3. The “International Committee” has acknowledged the urgency of the situation “for the international taxation of individuals, mainly focusing on citizenship-based taxation, the Foreign Account Tax Compliance Act (FATCA), and the Report of Foreign Bank and Financial Accounts (FBAR).”

Remember that many of the same submissions that were sent to the “International Committee” were also sent to the committee focusing on “Taxation of Individuals“. It’s difficult to see how the issues of individual Americans abroad could not have been addressed further by that Committee. Yet, it appears that the issues of Americans were not even mentioned.

In other words, the only mention of the taxation of Americans abroad appears in the above excerpt from the “International Group”.

In terms of where to go from here …

1. There will (in the very near future) be a lawsuit launched in the United States against the most egregious aspects of U.S. TAX policy, as they relate to ALL PEOPLE deemed to be “U.S. persons” who reside outside the United States.

2. The lawsuit is likely to, in addition to issues of taxation, include issues related to the “forced imposition of U.S. citizenship” on people who do NOT regard themselves as U.S. citizens or “U.S. persons”. Can the United States deem people to be “U.S. persons” when they believe that they are not?

3. The lawsuit will NOT be run by or through the “Alliance For The Defence of Canadian Sovereignty” (which will “stay at home” dealing with our FATCA lawsuit). It will be run by and funded by a different organization.

4. We hope for the support of all the various groups deemed by the U.S. Government to be “Americans abroad”. “If Americans abroad do NOT hang together, they will hang separately“.

Evaluating your personal situations …

It’s obvious that “U.S. citizenship abroad” lies somewhere between “difficult and impossible” (depending on your personal circumstances). The report from the “International Committee” suggests that the “plight of Americans abroad” is NOT likely to get better soon. This reality raises the obvious question of whether it’s safe to retain U.S. citizenship in a FATCA and FBAR world.

Stay tuned.

John Richardson

P.S. Here are the report from the International Committee and all the other committees.

The International Tax Bipartisan Tax Working Group Report

The reports from all the Committees are here.


The Individual Tax Bipartisan Tax Working Group Report

The Business Income Bipartisan Tax Working Group Report

The Community Development & Infrastructure Bipartisan Tax Working Group Report

The Savings & Investment Bipartisan Tax Working Group Report

The International Tax Bipartisan Tax Working Group Report

It is very clear that the collectively the Committee does not understand the urgency of tax reform in general. As goes taxation, so go civilizations. The greatest threat to the survival of America is NOT external. It’s the Internal Revenue Code of the United States.

I do not personally have any additional information about this lawsuit.

You can see access John’s links by going to the ADCS site.