Israel Dismisses FATCA Case

AGGGH!

The Israeli Supreme Court dismissed the case against FATCA.

It seems the Supreme Court of Israel thinks privacy is dead in today’s world:

“What can be done? In the modern world the right to privacy is very limited,” Supreme Court Justice Mazuz said. “The alternative to privacy is criminal acts of every kind. This is nothing new, except for the fact that it is regulated now under law and other mechanisms. It’s like the infringement on the right to freedom of occupation. There is always a need for licensing, regulation, and supervision. There are many infringements on freedom of occupation, right to property and privacy, because without it modern society cannot function.”

Scary stuff. Sounds like Justice Mazuz is an ally of the likes of Carl Levin and Gerald Keddy.

By Israel Court approving law targeting “Americans living in Israel,” the Israeli Supreme Court also seems to think U.S. law dictates constitutions of the world:

Justice Hanan Meltzer in part justified the law by noting its acceptance by the United States, saying this created a presumption of constitutionality.

“As long as the US law is in force, there is a presumption of constitutionality in regards to its purposes.”

In other words, U.S, “Congress has spoken” for Israel.

9 thoughts on “Israel Dismisses FATCA Case

  1. George III

    Lynne
    sorry if I misspelled your name in past.
    Can you please see if John Richardson can start putting together a list of non USA non tax lawyer for each province to help client with FATCA issue? These should be lawyer who are not license to practice in USA and are not compliant vultures. They will help people who are having problem with financial institution accepting the argument that they are not USA person.

    Reply
  2. Lynne Swanson Post author

    Israel has extended reporting to the IRS to November 30.

    This postponement leaves open a larger window of time for US tax payer accountholders to file objection against the intention of an Israel based financial institution to release information regarding their accounts than was first expected.

    Who knows what this will mean? Sounds like the IRS agreed to the extension beyond the established date of September 30.

    Reply
  3. NorthernShrike

    @DoD Can you clarify this? I am very interested in what you have to say. What is the source of your information? Thanks….

    Reply
  4. NorthernShrike

    An observation…

    Loss of privacy is only the beginning. Once the US has the information they seek, they will begin the process of confiscating unreported accounts. Canada has said that CRA will not collect on behalf of the IRS or US Treasury, however the major Canadian banks and insurance companies have major operations within the US. I expect that American courts would be very sympathetic to IRS efforts to collect penalties on foreign accounts through the US operations.

    Reply
    1. Lynne Swanson Post author

      When I closed my 32 year account with TD Canada Trust, I made it clear I wanted to deal with a financial institution that valued its Canadian customers more than it valued a foreign law.

      My credit union plans to comply with FATCA, but has made it clear they have no interest in knowing where I or any other member was born. In other words, they are following the broad wiggle room that CRA gave them. TD and the banks are not doing that.

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