If this report in Diplopundit is accurate, the cost to renounce U.S. citizenship will soar from $450 to $2350.
The percentage increase in the renunciation fee is 422%. With an estimated 2,378 annual renunciation of citizenship cases, this increase would net the USG an estimated $4,518,200. Using the projected FY 2014 workload, Consular Afffairs’ estimated change in annual fees collected for affected consular services is $64,003,862.
U.S. Department of State is expected to justify this with this statement:
The CoSM demonstrated that documenting a U.S. citizen’s renunciation of citizenship is extremely costly, requiring American consular officers overseas to spend substantial amounts of time to accept, process, and adjudicate cases.
Hmmm. I seems no one thought of another solution. Make the process easy. Allow it to be done via mail like Canada and many other countries do.
Americans lining up in Toronto to renounce.
Even after the deed is done, Patricia Moon describes the intense feelings.
The new exorbitant costs will only intensify the rage. Then, of course, there is the problem that you need to get in line to shed U.S. citizenship because there are no appointments in Toronto until 2015–which forces someone to file for yet another tax year.
All in US$ — today that US$2,350 would be CA$2553.37.
I guess the Conservative government is OK with this US fee added to the cost of US tax law, US tax accounting compliance industry assistance so there are no penalty footfalls, as we can “Just Renounce”.
Not Canada’s problem — for any of “US citizens who happen to reside in Canada”, even for its most vulnerable and least able to afford getting over this new Berlin Wall?
Shameful.
disgusting, just digusting.
I think DiploPundit has the text of the notice embedded in his article — and it’s worth going to his site to read his article anyway. But for a quick link to the text, you can access Notice #8850 directly at these links
http://www.ofr.gov/OFRUpload/OFRData/2014-20516_PI.pdf
https://www.federalregister.gov/articles/2014/08/28/2014-20516/consular-services-visa-and-citizenship-services-fee-changes-fee-schedules
Absolutely disgusting.
It’s sort of like a early cancellation fee that one may have with a telecom
or other provider that has been suddenly been raised without notice. Except,especially for accidentals, people never signed up for a lifetime membership.
More hoardes of money will flow out of the Canadian economy with the full support and encouragement of our elected Con MPs.
Their solution to FATCA: Just renounce. And, of course, hand over those Canadian earned dollars to Uncle Sam.
OMG! Really disgusting! And here I wait in limbo not knowing yet if Washington will say I have relinquished or need to renounce. And at this new extortionist fee.
There is some good news, however. Today’s Vancouver Sun business section has information on Canada’s interest in China’s currency, the Yuan:
http://www.vancouversun.com/business/Ontario+teaming+rally+support+Chinese+yuan+trading+Canada/10154611/story.html
Maybe the US dollar will eventually become quite insignificant.
Calgary411 e-mailed me that Patric Cain at Global News wants to interview people affected by this new fee.
He is moving quickly in response to this and has been very supportive of how we are impacted by the IRS, FATCA and renunciation issues.
In the past, Patric has been willing to use just first name and location.
I can think of some very compelling stories here.
Anyone interested can contact Patric via e-mail.
Patrick.Cain@globalnews.ca
If you are agreeable, be sure to flag your e-mail in the subject line with something like Renunciation U.S. Citizenship.
Burger King is renouncing U.S. citizenship.
They will not have to pay a huge fee or exit tax or be subject to FATCA or FBAR.
Their wages are so low, their employees qualify for food stamps and Medicaid.
What a Whopper of a scam. How disappointing Tim’s is selling out to this.
Patric Cain is reporting on this absurdity.
http://globalnews.ca/news/1532175/want-to-get-rid-of-u-s-citizenship-fee-just-quadrupled-to-2350/
So is Robert Wood at Forbes.
http://www.forbes.com/sites/robertwood/2014/08/28/u-s-hikes-fee-to-renounce-citizenship-by-422/
International Business Times is reporting the backlog in Toronto and somehow trying to show a connection to the Burger King tax dodge.
http://www.ibtimes.com/us-multiplying-fee-renounce-citizenship-2350-1673044
Value Walk
http://www.valuewalk.com/2014/08/cost-renouncing-us-citizenship-increase-five-fold/
No surprise here at all. I am surprised it didn’t happen sooner. They know that taxes they collect from ex pat Americans are almost not measurable. So they have upped the fees for services.
It’s basic economics. Supply and demand. They create the demand and then limit the supply.. There is a term for this in the hotel industry. It’s called yield management. If you show up late at a hotel that is 99% full! they will ding you hard. Supply and demand.
As for Burger King and Tim’s, I think more is being read into this than what the real situation is. They will continue to operate in the States, and will continue to pay the same taxes on those operations that they have always paid. From what I understand of the deal, it’s a corporate inversion, and movement of the head office here will merely protect the Canadian operations of Tim’s from higher US corporate taxes. The American operations will continue to pay what they have always paid.
As for people working in the head office, their taxes will probably go up. Canadian personal taxes are higher.
As time goes on, I think we will see more deals like this.
This could backfire and actually cause the number of appointments to go up rather than down. People might reasonably think ‘what if it goes up again, to 5K or 10K or 20?! What if there’s a new rule saying I have to make the oath while standing on my head?’
U.S. Citizenship is the new herpes.
Globe and Mail article.
http://www.theglobeandmail.com/report-on-business/international-business/us-hits-citizenship-renouncers-with-hefty-fee-hike/article20308580/
Toronto Star
http://www.theglobeandmail.com/report-on-business/international-business/us-hits-citizenship-renouncers-with-hefty-fee-hike/article20308580/
Yes Lynne, I agree. In the case of US herpes due to US citizenship, best to get a divorce ASAP.
@Patcanadian: I divorced that lying, cheating abusive spouse decades ago. I now learn he infected me with a painful, incurable disease that he is determined will haunt me for life.