Bopp FATCA case - Page 9

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  #81 (permalink)  
Old 21st July 2017, 04:40 PM
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Democrats Abroad submission to Hatch. It's kind of bizarre.

Quote:
Americans resident abroad pay taxes to their local tax authorities on the income earned in their country of residence and then report their income again to the IRS. The Foreign Earned Income Exclusion and the Foreign Tax Credit ensure that most Americans abroad are not double taxed on their ordinary earnings. However all other types of income – such as investment earnings, retirement savings and even social welfare payments – are subject to U.S. tax with no exemptions or offsets. These items are, in fact, double taxed.

State-sponsored retirement savings programs trigger highly-punitive passive foreign investment company (PFIC) rules under the U.S. tax code. So do non-U.S. mutual funds held by U.S. citizens living abroad, even if the mutual fund is located in the jurisdiction where the citizen is living. Aside from the punitive tax treatment, by the IRS’s own estimate, PFIC filings take over 40 hours to complete.

Filing itself imposes a substantial cost on even ordinary, middle class Americans living abroad because reporting foreign income on specially designed forms is so complex and often stressful. Although a range of expat tax return preparer services are available, the cost of preparing a return that includes earned income and retirement savings runs to hundreds if not thousands of U.S. dollars, even when no tax is owed.

Citizenship Based Taxation discriminates against Americans abroad. Their tax burden is higher; their investment and retirement savings options are narrower (see Appendix I); their compliance costs are greater; and, to the extent that these factors increase the cost of hiring U.S. citizens, their employment options are fewer.

Compounding these injustices is the fact, acknowledged by the IRS itself, that the U.S. has utterly failed to properly advise citizens abroad of their tax filing and reporting obligations. Due to a combination of ignorance, misinformation, cost and confusion, tax compliance amongst Americans abroad is low. Serious penalties for non-compliance, combined with the ability of Foreign Account Tax Compliance Act (FATCA) disclosures to bring non-compliant taxpayers abroad to the IRS’s attention, are creating enormous anxiety and anger at the innate unfairness of Citizenship Based Taxation.
Pity the Democrats didn't take this innate unfairness into consideration before they created FATCA.

Quote:
Because of the difficulty and cost to foreign financial institutions of FATCA compliance - and the enormous penalties for FATCA compliance failures – banks outside the U.S. are refusing service to Americans. In addition to the loss of access to a diversified supply of banking and investment products, FATCA reporting, in its current form, is making it harder for Americans to find jobs, start business partnerships and maintain stress-free domestic relationships with non-Americans who object to their joint accounts being shared with the IRS.
It's like they just can't understand how this was allowed to happen...

https://d3n8a8pro7vhmx.cloudfront.ne...pdf?1500526198

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  #82 (permalink)  
Old 31st July 2017, 04:33 PM
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Quote:
Originally Posted by iota2014 View Post
Somewhat surprisingly to me, Sen. Orrin Hatch is apparently seeking recommendations on tax reform.
Hatch, McConnell, Mnuchin etc have issued a statement indicating they're ready to put pen to paper, and outlining (vaguely) their intentions:
Quote:
Over many years, the members of the House Ways and Means Committee and the Senate Finance Committee have examined various options for tax reform. During our meetings, the Chairmen of those committees have brought to the table the views and priorities of their committee members. Building on this work, as well as on the efforts of the Administration and input from other stakeholders, we are confident that a shared vision for tax reform exists, and are prepared for the two committees to take the lead and begin producing legislation for the President to sign.

"Above all, the mission of the committees is to protect American jobs and make taxes simpler, fairer, and lower for hard-working American families. We have always been in agreement that tax relief for American families should be at the heart of our plan. We also believe there should be a lower tax rate for small businesses so they can compete with larger ones, and lower rates for all American businesses so they can compete with foreign ones. The goal is a plan that reduces tax rates as much as possible, allows unprecedented capital expensing, places a priority on permanence, and creates a system that encourages American companies to bring back jobs and profits trapped overseas. And we are now confident that, without transitioning to a new domestic consumption-based tax system, there is a viable approach for ensuring a level playing field between American and foreign companies and workers, while protecting American jobs and the U.S. tax base. While we have debated the pro-growth benefits of border adjustability, we appreciate that there are many unknowns associated with it and have decided to set this policy aside in order to advance tax reform.
Joint Statement on Tax Reform | Speaker.gov

This doesn't seem to me to suggest that reform/repeal of FATCA, or a shift away from CBT, is on the table.

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Old 3rd August 2017, 09:06 PM
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Update on the Isaac Brock website with regard to the Canadian case contesting the legality of the Canadian IGA:

Quote:
NEXT STEP: In oral testimony Plaintiffs will be examined by Government attorneys...at the end of this month…
http://*****************.ca/2017/08/...omment-7955547

**********..ca

Never mind. If interested, google "isaac brock society". Should be easy to find.


Last edited by iota2014; 3rd August 2017 at 09:14 PM. Reason: Trying to post a link to a website which though very angry is sometimes quite informative
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  #84 (permalink)  
Old 3rd August 2017, 10:52 PM
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Originally Posted by iota2014 View Post
Never mind. If interested, google "isaac brock society". Should be easy to find.
For annoyances like this a web redirection service such as TinyURL is your friend. For example:
The Isaac Brock Society | August 3, 2017 Canadian FATCA IGA Legislation Federal Court Lawsuit Update: Plaintiffs have complied with Court Order; Examination of Plaintiffs to begin
iota2014 likes this.

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  #85 (permalink)  
Old 10th August 2017, 01:52 PM
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From the July newsletter of "PETI" (the EU Parliament Committee on Petitions):

Quote:
“Accidental Americans” and FATCA - The extraterritorial reach of US fiscal laws and impact on EU citizens[/color]

A lively debate ensued in the PETI meeting of 11 July following the presentation of petition 1088/2016 on the US’ Foreign Account Tax Compliance Act (FATCA) and its alleged conflict with EU laws, including the evolving EU data protection framework. The petitioner outlined a number of real-life scenarios in which the privacy and property rights of “accidental Americans” (dual EU/US citizens holding US citizenship due to being born on American soil) have been adversely affected by the application of FATCA in EU Member States. Enacted in 2010, FATCA is intended to combat tax fraud by US residents domiciled abroad. Under the international application of the Act, non-US financial institutions are obliged to provide data to the US tax authorities of all clients who are US citizens. The petitioner claims that this leads to EU banks limiting the financial services provided to such clients in the EU, due to the possibility of US claims on tax arrears, penalties and other fees. The Commission’s response, that there is no breach of the Payment Accounts Directive (Directive 2014/92/EU) and that the bi-lateral regime between Member States and the US comprising Intergovernmental Agreements (IGAs) are beyond the competence of the Commission, were not accepted by the majority of PETI Members as adequate. In view of additional concerns raised in the LIBE and ECON opinions on the petition, PETI took the decision to keep the petition open and request a new reply from the Commission based on the petitioner’s presentation.
Emphasis added by me.

USCs, accidental USCs, and former USCs living in EU countries might want to consider writing about FATCA to the MEPs representing your area, as this might add to EP pressure on the Commission to come up with a more helpful response.

http://www.europarl.europa.eu/cmsdat...uly%202017.pdf

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