Monthly Archives: March 2016

US Passport application links Citizenship @StateDept to Taxation @USTreasury to enforce “Taxation based Citizenship”

 

cross-posted from Citizenshipsolutions dot ca

Yesterday I was forwarded an email which originated from the U.S.
Consulate in Toronto. The purpose of the email (included at the end of
this post) was to give notice of U.S. tax obligations for U.S. citizens
living outside the United States. In other words, the State Department
is assisting the IRS by notifying Americans abroad of their U.S. tax
filing obligations. Put another way, this email represents:

“Tax Education Outreach” from the IRS delivered by the State
Department”

I do NOT recall this in previous years. That said, this email
notification is extremely significant. It means that the IRS can argue
that those who received this email may well have had notice that they
were required to file U.S. tax returns. Over time, this will increase
awareness of U.S. tax filing obligations. The greater the increase in
awareness of U.S. tax filing obligations, the harder it will be to claim
ignorance of those obligations. (This is in addition to the “Educational
Outreach” coming in the form of FATCA letters from your local bank and your friendly
journalists. In both cases, you are being asked to consider the question
of: “Are you or have you even been an American
citizen?
“) Although, this is NOT an immediate problem, it seems
logical that sooner or later it will become more difficult for Americans
abroad to claim ignorance of their U.S. tax filing obligations. This may
have implications for coming into U.S. tax compliance.

 

Q. Who would have received this email from the U.S.
consulate?

A. Anybody who is on the U.S. Consulate email list.

Q. Who would be on the U.S. Consulate email list?

A. It would include almost anybody who has applied for a U.S. passport.

To put it simply:

One who applies for a U.S. passport is now putting oneself in a
position where one will be told about U.S. tax filing
obligations.
Since most Americans abroad need a U.S. passport,
it stands to reason that those who apply for a U.S. passport are
creating a situation where they will be told about U.S. “taxation based
citizenship”. You can see where this is going.

This appears to be the next step in the progression that
includes …

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Liberals Defend “Bully-Boy“ FATCA

Tim Harper of the Toronto Star counts some of the ways of How Liberal Privacy Campaign died with the election.

When the former Conservative government agreed to hand over private banking information of Canadians to the U.S. Internal Revenue Service, the Liberals led the growing chorus of indignation.

Their opposition started meekly but built. They tried to amend the law, which they portrayed as a loss of sovereignty and an unnecessary bow to American pressure. They accused Conservatives of breaching Canadians’ charter rights and unconstitutionally discriminating against Canadians based on their country of origin.

The opposition went to the top. Justin Trudeau said governments had to stand up for its citizens when foreign governments encroached on their rights.

Liberals became increasingly loud about the Stephen Harper government’s abuse of privacy.

Then they went silent. Then they were elected and now they defend the agreement they once vilified.

“I can`t begin to describe the sense of betrayal I feel.“

Tim Harper of the Toronto Star counts the ways of How the Liberal privacy campaign died with the election.

When the former Conservative government agreed to hand over private banking information of Canadians to the U.S. Internal Revenue Service, the Liberals led the growing chorus of indignation.

Their opposition started meekly but built. They tried to amend the law, which they portrayed as a loss of sovereignty and an unnecessary bow to American pressure. They accused Conservatives of breaching Canadians’ charter rights and unconstitutionally discriminating against Canadians based on their country of origin.

The opposition went to the top. Justin Trudeau said governments had to stand up for its citizens when foreign governments encroached on their rights.

Liberals became increasingly loud about the Stephen Harper government’s abuse of privacy.

Then they went silent. Then they were elected and now they defend the agreement they once vilified.

“I can`t begin to describe the sense of betrayal I feel.“

How Can Liberals Be So Careless with Privacy Rights?

Thank you NDP’s Peter Julian for calling the Fibbing Libs on their hypocrisy in the House of Commons last week.

Mr. Speaker, here is another Liberal broken promise.

The Conservatives signed a deal to implement FATCA and hand over private financial information of one million Canadians to the United States. During the campaign, the Liberals said that the deal violates privacy rights and may even be unconstitutional. However, now in government, the Liberals have handed over private information on more than 155,000 Canadians so far, without even understanding the impact.

How can the government be so careless with its promises and so careless with the privacy rights of up to one million Canadians?

The Minister of National Revenue replied in French.

Monsieur le Président, notre gouvernement prend très au sérieux la question de la protection de la vie privée. Nous continuerons à travailler avec les États-Unis pour veiller à ce que toutes les garanties de sécurité soient respectées.
Nous tenons à rappeler que nos deux pays ont une longue tradition de coopération fiscale et responsable qui remonte à 1942. Je voudrais rassurer les Canadiens. Tous les échanges d’information avec les États-Unis, en ce qui concerne le respect du droit à la vie privée en vigueur au Canada, sont cohérents.
Constituency Office

I don’t understand all of what she said, but I understand enough to know it is more hypocrisie.

As Ginny asked in an e-mail today:

Why does the Canadian Minister of National Revenue keep a little pink flashcard so as always to have the same answer handy?

Because that is what the CRA employees told her to say. It seems the Minister now works for the CRA employees instead of them working for her.

Lberal Flip Flops on Privacy Rights

Liberal Flip Flop on Privacy for FATCA writes Marni Soupcoff in the National Post.

She writes:

No one was clearer about his qualms about this agreement than now-Prime Minister Justin Trudeau, who wrote in a pre-election letter that, “The Government of Canada has a responsibility to stand up for its citizens when foreign governments are encroaching on their rights. We believe that the deal reached between Canada and the U.S. is insufficient to protect affected Canadians.”

But:
…We appear to be no further ahead in addressing the constitutional problems with the FATCA-related agreement than we were when the previous government passed it two years ago.

Gwen tells it like it is:

That suit is still before the courts, but the feelings of one of the plaintiffs, Gwen Deegan, expressed around the time the constitutional challenge was launched, remain as relevant as ever: “This is an infringement on Canadians of U.S. origin by our Canadian government. It’s literally a betrayal and I feel we can’t just sit idly by and let it happen.”

We will keep fighting through Gwen and Ginny. Please don’t sit “idly by.” Consider being a witness to help “address the constitutional problems.”

Don’t let the Fibbing Libs get away with their flip flop.