[GUAPACHICA]

BBC News - Why are Americans giving up their citizenship?

Hi - I've just read this re. USA's draconian new world-wide tax - hunt! Expat US citizens are facing stark choices, so; might Spain's Rajoy copy this latest move…?

Saludos,
GC

 

[Alcalaina]

It's not dissimilar to what Rajoy has already done - require citizens to declare worldwide assets. This isn't a new tax, and only tax evaders have anything to worry about.

It's an attempt by the US authorities to recover an estimated $100bn a year in unpaid taxes on US citizens' assets overseas. Unlike other countries, Americans are taxed not only as residents of the US but also as citizens, wherever they live.

 

[baldilocks]

BBC News - Why are Americans giving up their citizenship?

Hi - I've just read this re. USA's draconian new world-wide tax - hunt! Expat US citizens are facing stark choices, so; might Spain's Rajoy copy this latest move…?

Saludos,
GC

The US system affects "US citizens" irrespective of where they live. The Spanish system applies to "Tax residents" irrespective of their citizenship.

 

[GUAPACHICA]

It's not dissimilar to what Rajoy has already done - require citizens to declare worldwide assets. This isn't a new tax, and only tax evaders have anything to worry about.

Hi - I think that the difference is that, in the case of the USA, the financial institutions are to be required to report on citizens' accounts, world-wide, direct to the Government! Currently, in Spain's case, isn't it the responsibility of the individual, alone, to give such info. to the tax authorities, on their world-wide assets? I'm not aware that, so far, Rajoy is demanding such info. direct from financial institutions abroad. But, will he..?

QUOTE/ A new law called the Foreign Accounts Tax Compliance Act (Fatca) will, from 1 July next year, require all financial institutions around the world to report directly to the US Internal Revenue Service (IRS) all the assets and incomes of any US citizens with $50,000 (£31,000) on their books. The US could withhold 30% of dividends and interest payments due to the banks that don't comply /END QUOTE

A point made in this news story is that the administrative process is a huge deterrent, so, perhaps it's incumbent upon the US tax authorities to ensure that their tax forms are simplified (please take note - UK inland Revenue..)!

Of course, tax evaders should be made to pay up = but, as a UK citizen, I'm well aware of the unfair taxation policies to which I'm currently subject. I know that the incredibly rich can afford to employ tax accountants with the expertise to enable them to avoid paying all of the tax due on their enormous wealth - whilst, in many cases, those tx evaders endorse the very political party which requires the general public to pay higher taxes!

Saludos,
GC

 

[Alcalaina]

Hi - I think that the difference is that, in the case of the USA, the financial institutions are to be required to report on citizens' accounts, world-wide, direct to the Government! Currently, in Spain's case, isn't it the responsibility of the individual, alone, to give such info. to the tax authorities, on their world-wide assets? I'm not aware that, so far, Rajoy is demanding such info. direct from financial institutions abroad. But, will he..?

In Europe there have already been agreements like the EU Savings Directive, so financial institutions in former tax havens the Channel Islands must disclose financial info to the tax authorities where their clients are resident. Rajoy can even get this from Gibraltar now, thanks to a recent ruling by the EU Court of Justice.

Gibraltar obliged to share financial information with Spain

Not sure what the situation is on Switzerland, the last bastion of anonymous banking?

 

[snikpoh]

In Europe there have already been agreements like the EU Savings Directive, so financial institutions in former tax havens the Channel Islands must disclose financial info to the tax authorities where their clients are resident. Rajoy can even get this from Gibraltar now, thanks to a recent ruling by the EU Court of Justice.

Gibraltar obliged to share financial information with Spain

Not sure what the situation is on Switzerland, the last bastion of anonymous banking?

Nope, I think that you'll find Switzerland is no longer exempt. They have been forced to cough up information on ALL bank accounts etc.

 

[baldilocks]

It's not dissimilar to what Rajoy has already done - require citizens to declare worldwide assets. This isn't a new tax, and only tax evaders have anything to worry about.

With all due respect it IS different from what Raoy has done - the US requires ALL its citizens wherever they are - Rajoy only requires Spanish Tax residents to do it.

 

[Alcalaina]

With all due respect it IS different from what Raoy has done - the US requires ALL its citizens wherever they are - Rajoy only requires Spanish Tax residents to do it.

True. But the US has always taxed citizens living abroad, hasn't it?

 

[baldilocks]

Of course, tax evaders should be made to pay up = but, as a UK citizen, I'm well aware of the unfair taxation policies to which I'm currently subject. I know that the incredibly rich can afford to employ tax accountants with the expertise to enable them to avoid paying all of the tax due on their enormous wealth - whilst, in many cases, those tx evaders endorse the very political party which requires the general public to pay higher taxes!

Saludos,
GC

This is similar to the systems that have prevailed in the past in Spain (they may still do so to some extent, as far as I know) whereby all the burden of the country's taxation fell on those who were working, albeit at breadline wages (i.e. the less well off parts of the population) whereas the church, the rich and those with political influence wangled themselves dispensations from paying taxes (after all, they weren't working for a living so had no wages to be taxed. This ridiculous situation led to the Spanish monarch declaring bankruptcy and welching on deals and loans several times in the past.

 

[GUAPACHICA]

Update - ex-US citizens!

Hi - thanks for all comments posted, to date, in response to my query.

http://www.bbc.co.uk/news/magazine-24338387

So, here's an update from today's BBC website. These are the personal stories from some US citizens who have now decided to become ex-US citizens!

Saludos,
GC

 

[Alcalaina]

Hi - thanks for all comments posted, to date, in response to my query.

BBC News - 'Why I gave up my US passport'

So, here's an update from today's BBC website. These are the personal stories from some US citizens who have now decided to become ex-US citizens!

Saludos,
GC

Good to see it's not just about tax evasion:

In addition to objecting to the expensive hassle of US taxes for expats, I renounced my US citizenship because of the way the US spent my taxes on illegal wars.

Increasingly, the US seemed to become a very foreign place, culturally and politically. Tax issues were not a factor in our decision, but rather the availability of affordable university education and health insurance.

Living in Holland, after 10 years I was able to put in perspective how unfair the US government is with its own citizens (poverty, healthcare, education etc). Being a member of a minority group (Puerto Rican) living in New York, I never realised that life can be better.

 

[baldilocks]

When one looks at the present farce and how one small section of one particular party can hold the country to ransom while representing the interests of its sponsors rather than those of the people who elected it into power, it is quite amazing how gullible the American people seem to be when they re-elect those same politicians.

The mind boggles. In many other countries they would have had a revolution and strung up the aforesaid from the nearest lamp-post.

 

[mrypg9]

When one looks at the present farce and how one small section of one particular party can hold the country to ransom while representing the interests of its sponsors rather than those of the people who elected it into power, it is quite amazing how gullible the American people seem to be when they re-elect those same politicians.

The mind boggles. In many other countries they would have had a revolution and strung up the aforesaid from the nearest lamp-post.

I'm beginning to think in the same way about the UK as it is now.

 

[GUAPACHICA]

I'm beginning to think in the same way about the UK as it is now.

Hi - the very same thought just flashed through my mind, too, whilst reading the previous post (great minds…) !

One of the most dismal and soul-destroying aspects of my continuing sojourn in the UK has been my having had to endure 'live-streaming' video footage of the Tory Party Conference, every time I've switched on any British TV News channel, in recent days!

This wall-to wall coverage and analysis has reminded me, forcefully, that one of the most life-enhancing benefits of my Spanish lifestyle is the opportunity to live without being assailed, constantly, by TV News clips and media images of the current UK Government leaders and Ministers, pontificating, yet again, on the 'urgent need' for them to to lay waste, immediately, to everything in our country which has not already been sold off for short -term gain and ideology gone completely mad!

In Spain, I've chosen not to have a TV set, so such accidental viewing of their depressing, stress-inducing images and exploits hardly ever occurs - provided, of course, I also steer well clear of the only two British newspapers readily available locally; namely, the Daily Mail :evil: and Telegraph..!

BTW, my blood pressure's much happier in Spain

Saludos,
GC