We were recently contacted by a group called Financial Repression Authority, who say they are ‘a research firm focused on macroprudential policies representing risks such as ring-fencing regulations (TATCA)’. www.financialrepressionauthority.com.
They included a YouTube link for an interview with John Richardson, mainly speaking about FATCA. As always, John is very articulate and factual and I enjoyed listening to it.
Financial Repression Authority’s introduction to the interview:
“Gordon T Long Interview of John Richardson on FATCA .. John Richardson is a citizenship lawyer with a focus on FATCA .. this is a U.S. regulation which forms a component of macroprudential policy around ring-fencing of capital – FATCA imposes 30% witholding for any payments originating from the U.S. going to overseas banks or accounts if those banks or specific end-destination acccounts are not “compliant” with FATCA reporting requirements .. this podcast covers: How citizenship taxation has made U.S. citizenship a disability in the modern world .. How the U.S. “Exit Tax” triggered by renouncing U.S. citizenship operates to confiscate non-U.S. assets outside the U.S. .. discussion on the capital controls nature of FATCA ..” 38 minutes
Tag Archives: FATCA
FATCA Summary Trial Filing
GINNY AND GWEN’S MOTION RECORD FOR AUGUST 4-5 SUMMARY TRIAL IS NOW POSTED ON OUR ADCS WEBSITE. SEE VOLUME 1, VOLUME 2, VOLUME 3, AND VOLUME 4.
We argue that the FATCA IGA enabling legislation is contrary to sections of the Income Tax Act and the Canada-US Tax Treaty. These are “technical” arguments that we feel are appropriate for a summary trial. Charter considerations could not be used in the summary trial (but would be used in the full trial if required).
We say:
“The Tax Treaty Issues [raised in the summary trial] are discreet and distinct from the other issues raised by the plaintiffs. The plaintiffs’ other grounds of complaint involve division of powers and Charter breaches. These issues are factually and legally distinct from the operation of the Canada-US Tax Treaty and its relationship to the Impugned Provisions. As a result, the matters addressed in this motion [the summary trial] will not be re-litigated in the Charter and division of powers aspect of the plaintiffs’ claim.
The Tax Treaty Issues will need to be adjudicated even if they are not decided summarily. If this Court finds against the plaintiffs on this summary trial motion, the range of issues to canvass at [full] trial will nevertheless be significantly narrowed. If the plaintiff prevails [there are many “depending ons”] in respect of its claims in this motion, it will likely be unnecessary to proceed with the other issues raised by the plaintiffs.”
The motion includes a request for:
An order in the nature of a permanent prohibitive injunction preventing the disclosure of taxpayer information to the United States by the Minister of National Revenue and her authorized representative(s) where:
a. the taxpayer information relates to a taxable period in which the tax payer was a citizen of Canada;
b. the taxpayer information is not shown to be relevant for carrying out the provisions of the Tax Treaty Act or the domestic tax laws of Canada or the United States; or
c. the disclosure of the taxpayer information subjects United States nationals resident in Canada to taxation and requirements connected therewith that are more burdensome than the taxation and requirements connected therewith to which Canadian nationals resident in Canada are subjected.
Our summary trial will be heard at Federal Court, 701 West Georgia Street, Vancouver, British Columbia, commencing on Tuesday, August 4, 2015 at 9:30 a.m. for a maximum duration of two days.
UPDATE On May 8, 2015, the Arvay-Gruber team filed the comprehensive Memorandum of Fact and Law.
Government Defence to Charter Challenge
The statement of defence has been received. Click on the link below to read.
Statement of Defence
Ginny Writes to London Mayor Boris Johnson. Help Stop FATCA with ADCS.
November 22, 2014
Boris Johnson
Mayor of London
Greater London Authority
City Hall
The Queen’s Walk
London SE1 2AA
Dear Mr. Johnson:
RE: IRS
Yes, Boris Johnson I know just how you feel.
But the article is incorrect about the amount for the cut off and you would owe a lot more than just the capital gains on your house. Fines and exit fees could amount to hefty penalties for failure to file income reports when you, like a lot of of us, didn’t know about these until recently. Because the IRS never informed anyone or published their regulations in any way that the public would see.
The USA is the only country in the WORLD that taxes by citizenship, rather than residence. They need $$$ to fund their deficit and they are now going after every person in every country that they consider American. Like you, many people who lived in the USA for a few years or more who had no choice where they were born, never have considered themselves US citizens. You are a British citizen clearly. You have no ties to the USA. I know that feeling too.
However, to date there are only two people in the world, my co- plaintiff and I who are taking on this issue (in our true home country Canada, as full Canadian citizens, in our courts) because Canada entered into an agreement with the USA which turns over our banking information via our CRA. Just as the UK has done by entering into a similar intergovernmental agreement. As you are now finding out. I am not saying that to toot my own horn. I am saying it so that you might consider another option.
You might consider launching your own legal protest in the UK on behalf of people there like you, that the USA deems to be tax invaders. I bet that might be an interesting political launching pad for you, considering the USA went to war with the UK over off shore taxing in the first place. As in the ‘real’ Tea Party Revolution. I assume you well know your history? And that you see the irony?
And you have political cache that I don’t.
It’s not easy and it sure is expensive. But principles and access to justice are very important things to stand up for, in my opinion. Your mentor, Mr. Churchill would no doubt be proud of you if you did.
All the best, Boris.
Ginny Hillis,
Windsor Ontario, Canada
[Plaintiff in Canadian FATCA IGA lawsuit against Government of Canada]
Trish Moon Interviewed about FATCA on Canada AM
My sincere thanks go to Trish Moon for her interview on Canada AM this morning. Trish, you did a fantastic job of representing those of us affected by FATCA.
http://canadaam.ctvnews.ca/video?binId=1.815911
FATCA Scams Already Starting
This is no surprise to us. The FATCA scams have begun.
IRS Warns of FATCA Phishing Scams in multiple countries and continets.
This clearly has thye potential for financial or identity theft, fraud or even worse. We can only imagine what groups like ISIs or Al Quaeda would do if they were able to get their hands on the financial and personal data od people born in the United States.
This is one more reason why we must ensure Canadian banks should not be allowed to ferret out “U.S. persons” for CRA and the IRS. Please donate to http://adcs-adsc.ca/
Concern from a Wild Rose Constituent re: FATCA/IGA
Today I emailed the following letter to my MP – Blake Richards Member of Parliament (Wild Rose Alberta).
Dear Mr. Richards
In the past month I have done two things you should know about, as my elected Member of Parliament:
1. I donated money to help fund a lawsuit against my own government to protect my rights as a Canadian citizen.
2. I vowed never to vote Conservative again.
As my elected official you should know that I believe that my government has taken the easy way out by placating the United States, and the big banks, rather than standing up for individual Canadian rights. And the consequence of that is the loss of my vote, and something I would never have thought feasible – my donation to a lawsuit to challenge my own government.
As a member of the Standing Committee on Public Safety and National Security, you should know that millions of Canadian citizens are now at risk for identity theft. As of July 1st, Canadian banks are forced to send the private information on ‘suspected US persons’ bank accounts, and those of their spouses and business partners, to the CRA. That information will then be sent on to the IRS, which has been repeatedly in the news about security breaches.
Are you not at all concerned that a foreign government will have the personal information on millions of Canadians?
Are you not at all concerned that millions of Canadians are at risk to have large financial penalties imposed by a foreign government?
Are you not at all concerned that millions of Canadian will have to take the onerous steps to relinquish or renounce US citizenship, creating a drain on finances, as well as health?
Are you not at all concerned that respected and renowned Canadian lawyers believe that the FATCA IGA is in violation of Section 15 of our Canadian Charter of Rights and Freedoms?
Mr. Richards, I am writing to you, not only to express my concerns, but to give you an opportunity to tell me what you are doing to protect the rights of Canadians in your constituency from a foreign government. If you want a chance to win back a voter, this is the time – tell me how you will protect Canadians like me – law abiding, tax paying Canadians – from the might of the United States government who are enforcing their laws in my country.
Regards,
Outraged Canadian
Are You a Canada-U.S. Dual Citizen? @cbcallinaday is Following a New Law That Affects You
Are you a Canada-U.S. dual citizen? @cbcallinaday is following a new law that affects you: http://t.co/Gt1lfV3LuC
— Susan Burgess (@susanmburgess) August 15, 2014
*****
Friday August 15, 2014
The facts on FATCA
As of Canada Day, Canadian banks are required to start getting into compliance with a U.S. law called FATCA, the Foreign Account Tax Compliance Act. It requires them to hand over the account information of clients with ties to the U.S., such as people with Canada-U.S. dual citizenship. That information goes to the Canada Revenue Agency, for release to U.S. tax authorities.
It’s a lot to absorb for dual citizens, so we’ve done several interviews this summer on the legislation and the arguments for and against it. And in case you missed any of them, you can get caught up by listening to a FATCA primer by a tax law expert, an interview with an Ottawa dual citizen who’s affected, a defence of the U.S. model of citizenship-based taxation, and our latest: the legal case against Canada’s acceptance of FATCA.
Are you affected by FATCA? Get in touch with us and tell us your story. We’ll continue to follow the issue in the months to come.
*****
The above paragraph links to Alan Neal’s radio interviews with Allison Christians, our own White Kat as well as Prof. Michael Kirsch and one of our lawyers, David Gruber.
The site is inviting comments on this story here. No comments have been posted yet – time for Sandboxers to dig in!
Read the FATCA Lawsuit Claim
On behalf of the millions of us affected by FATCA, and by our Canadian government’s betrayal of our rights, the very brave Virginia Hillis and Gwendolyn Deegan have filed the lawsuit that we are hoping will force our government to protect our rights as Canadian citizens and residents.
It’s been quite newsworthy that these two women had the gumption to take on our government, and that two very renowned lawyers, Joe Arvay and David Gruber (of Farris LLP) have been retained.
Legality of US IGA's Analyzed – and Debunked
It’s well worth reading some of the more recent posts and articles, to keep an eye on what is happening in the US regarding FATCA – as we’ve learned to our dismay, that what happens down there will ultimately affect what happens up here.
Forbes has published a piece by James George Jatras, in which he says.
“The trouble is, FATCA doesn’t authorize Treasury to make these agreements with foreign governments, nor are IGAs treaties that will be submitted to the Senate for advice and consent.”
Forbes: Unauthorized FATCA ‘Intergovernmental Agreements’ Are Part Of Obama’s Executive Overreach
Jack Townsend, on his blog ‘Federal Tax Crimes’, posted the letter responding to a US congressman question on whether the IRS/Treasury Dept can legally enter into these agreements with other countries.
http://federaltaxcrimes.blogspot.ca/2014/07/irs-letter-to-congressman-defending-its.html
And, finally, Allison Christian’s post analyzing the legality:
http://taxpol.blogspot.com.au/2014/07/irs-claims-statutory-authority-for.html
Although Ms. Christian’s post is speaking to the legality, it’s very readable and should make the signer of that letter, Alastair M. Fitzpayne. hang his head in shame for not undertaking the proper legal research. (That’s the charitable version, others think it was simply an out and out lie).
She says,
“Instead of citing non-existent statutory authority that is easily refuted by simple reading, Treasury should own what it is doing outright.”
Every day I am thankful we have such prominent, knowledgeable and well respected people shining the spotlight on FATCA and the IGAs.