John will also be doing information sessions in Sydney (Nov 1) and Auckland (Oct 31). See details and email the address given to register.
A series of information sessions (some formal presentations and some informal discussions); for information concerning the content of the programs please see here.
John Richardson is a Toronto citizenship lawyer, the co-chairman of the Alliance for the Defence of Canadian Sovereignty as well as the Alliance for the Defeat of Citizenship Taxation. He is a member of the ACA Taxation Advisory Panel. He holds the degrees of B.A., LL.B., and J.D. He is a member of the Massachusetts, New York and Ontario bars. His law practice focuses on “Solving the problems of U.S. citizenship” including relinquishing and the “Exit Tax”. He gives programs for expats (and Green Card holders) all across Canada and Europe. He writes extensively at citizenshipsolutions.ca.
Bangalore, India – October 22
Brisbane, Australia – October 25
with Karen Alpert
THU, OCT 25 AT 7 PM UTC+10
Information session – Brisbane
12 Payne St, Auchenflower QLD 4066, Australia
Karen Alpert founded the website Let’s Fix the Australia/US Tax Treaty and its associated Facebook group. The purpose of the group is to lobby and educate the Australian government regarding the impact of extraterritorial US laws on Australian citizens and residents and the cost to Australia of surrendering its sovereignty in these matters. Karen has a Ph.D. (UQ, Finance) and lectures in Finance at the University of Queensland.
Auckland, New Zealand – October 31
Sydney, Australia – November 1
Thursday, November 1
7:00 – 9:00 p.m.
The Rex Centre – Baroda Room
58A Macleay Street
Entrance near Baroda Street
Potts Point NSW 2011
Cost: Free, but preregistration is required for all sessions except the October 25 session in Brisbane (where you can just appear)
Registration: please send an email to: citizenshipsessions at citizenshipsolutions.ca or nobledreamer16 at gmail.com
- Kings Cross train station is within walking distance.
- Bus route 311 stops on Macleay Street, near Orwell Street.
- Bus routes 323, 324, 325, 326 and 327 stop on Bayswater Road, near Darlinghurst Road.
- Limited on-street parking.
- Kings Cross parking station is nearby.
Dubai, UAE – November 4
Limassol, Cyprus – November 7
Information presented is NOT intended or offered as legal or accounting advice specific to your situation.
cross-posted from Brock.
by Stephen J. Kish
CANADIAN FATCA IGA LAWSUIT UPDATE
Here is the Memorandum of Argument of our Plaintiffs (Gwen and Kazia) for our FATCA IGA legislation lawsuit that was submitted on October 3, 2018 to Canada’s Federal Court. [Note that text is limited to 30 pages.]
The Memorandum can be found HERE.
The gist of our argument (page 12) is that the FATCA IGA legislation is inapplicable to Provincially regulated institutions and violates Sections 7, 8, and 15 of Canada’s Charter of Rights.
The word “sovereignty” is used many times in the document.
— “Section 8 of the Charter states: Everyone has the right to be secure against unreasonable search or seizure…The Impugned Provisions authorize both a search and a seizure…The plaintiffs and other reasonable hypothetical individuals have a reasonable expectation of privacy in their Accountholder Information…Canada pleads that because the plaintiffs and other US Persons have pre-existing obligations to report certain information to the IRS under US law, their privacy interest in that information is minimal…Canada cannot demonstrate that the searches and seizures authorized by Impugned Provisions are reasonable because (a) they are warrantless and lack any judicial supervision of any kind, (b) it is impossible to test their reliability in achieving their objective, and (c) they almost certainly capture an inordinate number of individuals who have no US tax and reporting obligations…”
— “The state objective underlying the Impugned Provisions is to assist the United States in implementing FATCA and finding US tax evaders and cheats.57 This is not an important Canadian objective.”
— “Finally, the court should recognize a novel principle of fundamental justice that Canada will not deny its citizens the protection of Canadian sovereignty…the principle of non-intervention between states is a cornerstone of the international order and intrinsically connected to state sovereignty;88 it is undoubtedly considered by all Canadians to be fundamental to their notion of justice that Canada will not expose them to enforcement of another state’s laws…”
— Canada responds to our Memorandum of Argument by November 21, 2018.
— We reply to Canada by December 7, 2018.
— Trial is held in Vancouver beginning January 28, 2019
cross-posted from Citizenship Solutions
— John Richardson – lawyer for "U.S. persons" abroad (@ExpatriationLaw) October 2, 2018
The logical progression continues …
I just got off the phone with someone who has just received a letter from the IRS stating that:
1. He had a “seriously delinquent” tax debt; and
2. That notice of the “seriously delinquent” tax debt was being forwarded to the State Department.
(In 2016 I did a presentation on this topic just a few months after the law came into force. You may view the presentation here.)
It is clear that the letters from the IRS have started to go out. The purpose of this post is to explain in simple terms what this means for Americans abroad.
To put it simply:
1. If you have received the notice and you do NOT have a current U.S. passport then:
The State Department cannot issue you a passport.
2. If you have received the notice and you DO have a current U.S. passport then:
The State Department may revoke your passport but is not required to revoke your passport.
For most Americans abroad (who certainly have a valid U.S. passport unless they are dual citizens) receipt of the letter does NOT mean that they will lose their existing U.S. passport.
Like all aspects of living as a U.S. citizen abroad, this issue will be governed by both the IRS and by the State Department.
It began with Sec. 3201 of the FAST Act (which naturally is a revenue offset provision and one of the final gifts from the Obama administration) …
Like most of life as a U.S. citizen, it all starts with the IRS …
Internal Revenue Code Sec. 7345 provides the mechanism to certify the “seriously delinquent tax debt” and then forward notice of the debt to the State Department. The relevant language is:
If the Secretary receives certification by the Commissioner of Internal Revenue that an individual has a seriously delinquent tax debt, the Secretary shall transmit such certification to the Secretary of State for action with respect to denial, revocation, or limitation of a passport pursuant to section 32101 of the FAST Act.
You can read how the IRS interprets this provision here:
Once the State Department receives the “certification” it will respond with “denial, revocation, or limitation” …
Passports and Seriously Delinquent Tax Debt If you have been certified to the Department of State by the Secretary of the Treasury as having a seriously delinquent tax debt, you cannot be issued a U.S. passport and your current U.S. passport may be revoked.
If you are overseas you may be eligible for a limited passport good for direct return to the United States.
We would suggest that if you have seriously delinquent tax debt, you contact the IRS to resolve your debt before applying for a passport. If you do not resolve your tax issues before applying for a passport, your application will be delayed or denied.
If you have seriously delinquent tax debt and have already applied for a new U.S. passport, we cannot issue a new passport to you until you have resolved your tax issues with the Internal Revenue Service (IRS).
For more information on seriously delinquent tax debt, see Revocation or Denial of Passport in Case of Certain Unpaid Taxes on the Internal Revenue Service (IRS) website.
So, where in the legislation and regulations does all this come from?
Denial: Denial is mandatory when one applies for renewal or for a new passport.
§ 51.60 Denial and restriction of passports.
(a) The Department may not issue a passport, except a passport for direct return to the United States, in any case in which the Department determines or is informed by competent authority that:
(3) The applicant is certified by the Secretary of the Treasury as having a seriously delinquent tax debt as described in 26 U.S.C. 7345.
Revocation: Revocation is permitted but is not mandatory
§ 51.62 Revocation or limitation of passports.
(a) The Department may revoke or limit a passport when
(1) The bearer of the passport may be denied a passport under 22 CFR 51.60 or 51.61; or 51.28; or any other provision contained in this part; or,
It is not clear when the State Department would revoke an existing passport. I am not sure what incentive the State Department has to revoke an existing passport (just because of a tax debt).
My thoughts on this …
1. The $50,000 “tax debt” includes interest and penalties. It’s easy for an American abroad to exceed this simply through “form transgressions”.
2. The people most threatened by this are those who do not have a second passport. Get yourself a second passport.
The days of living as a U.S. citizen outside the United States are clearly numbered.
Interested in learning about Substitute Tax Returns for non-filers? If this is not enough excitement, see …
— John Richardson – lawyer for "U.S. persons" abroad (@ExpatriationLaw) October 2, 2018
September 24, 2018
updated 1:02 PM CEST, Sep 27
Legislation that its proponents say would significantly improve the lot of American expatriates, many of whom have been left reeling by the Trump tax reforms introduced at the end of last year, will be introduced in Congress before the end of the month.
This was the message delivered to a London audience of around 80 mainly expatriate Americans last week by Republican Overseas global chief executive Solomon Yue, (pictured above, far left, and below), and again a few days later to an also mainly expat audience in Paris.
Today Yue is due to bring his message to expats in Frankfurt, with similar events scheduled for Berlin and Rome over the next few days.
Yue’s appearances were his latest on a global whistle-stop tour of key foreign business centers around the world that aims to rally support among – and ideally as well, the active involvement of – American citizens living abroad for legislative changes in the way their country currently taxes them, in the run-up to the midterm elections in November.
Continue reading Legislation to help American expats imminent, London audience told
UPDATE SATURDAY September 15, 2018
A Letter from Monte Silver
Americans against the Repatriation/GILTI taxes – within striking distance of winning and you can help! And what to do with the October 15 filing deadline?
Hi Fellow Americans,
On August 1, 2018, the Treasury issued proposed regulations that interpret the Repatriation tax law – a 250 page very complicated document. I discovered that in issuing the document, Treasury seriously violated numerous Federal laws and procedures. This gives us tremendous leverage in negotiating for an exemption from the Repatriation & GILTI laws. It is not unreasonable to expect that this battle may be won by December 15, 2018. As you many have an October 15, 2018 filing deadline, I attach a relevant portion of an IRS publication stating that you may be able to extend the filing date until December 15, 2018. I suggest that you discuss this with your US CPA specialist to see if this applies to you.
What can you do to help win the battle? Easy! We need impacted Americans abroad and in the US to send in a few short paragraphs (as outlined below) – by October 7! See below for instructions. If you or people you know are impacted by these laws, lets take care of business!
The same text is available at www.americansabroadfortaxfairness.org
We are within reach. Lets do it.
- Do not include any identifying information about you or your business. Do not even say whether you live in the U.S. or abroad.
- You need to customize the letter where marked in red!!!
- Do not discuss anything but the Repatriation tax, and 962 if relevant for you.
- Submitting your comment: You can submit directly at www.regulations.gov/comment?D=IRS-2018-0019-0001. This Federal site does not require you to identify yourself.
- If you want to remain 100% anonymous, send the comment to me and I will submit it in an anonymous batch with others. To see other comments, including my own, click “Open Docket Folder” on the above link.
Subject: Comment on the proposed 965/962 rules
To the US Treasury:
I am a U.S. Person with an interest in a small business. As a result of the Repatriation tax, and now these Proposed Rules, 2018 has, and the foreseeable future will continue to be, a nightmare for me, my business and my family.
I am unable to understand the 250-page document at all. My comment is only limited to two issues:
(i)The 5-hour estimate you state that it will take me to comply with this proposed rule in totally unrealistic, and
(ii)The Repatriation tax and this proposed regulation have and will continue to devastate my small business.
Issue 1: Countless hours I have spent and still have to spend trying to deal with the Repatriation tax.
PUT YOUR OWN EXPERIENCE HERE. In one or two paragraphs, detail all the time you have had to spend on the Repatriation tax. Include everything, from initially reading about the tax and talking to friends, to contacting your US and non-CPA CPA, to doing more research on what the tax is and means to you, how to comply, contacting your Congresspeople to complain and demand action, , to gathering documents and tax information, to joining groups and forums to discuss this matter and learn what to do. If your current CPA is not sufficiently knowledgeable about this tax and you had to speak to other tax professionals and pay then, state that. Put an estimate as to the number of hours you have spent on the Repatriation tax and what you have no idea how many hours it will take for you to understand the comply with the 250 page proposed regulations
Issue 2: How the Repatriation tax has devastated my small business.
PUT YOUR OWN EXPERIENCE HERE. In one or two paragraphs, state things like:
- how the cost of compliance is so significant that it will threaten the existence of your business. The cost can be
- (i) money – paying tax professionals, taking money needed for the business out of the business to pay the tax.
- (ii) Time wasted on this and how that impacts your business. Add that this cost does not include the cost of future compliance for the proposed regulations which you cannot even begin to estimate
- how you are unable to compete with non-us businesses as they do not have to comply
- how you do not have the money needed to pay the tax and will need to take out loans, liquidate an asset, or take out pension money at a huge penalty
- Taking money out of the company to pay this tax is harmful to the growth of your business
- if you are making the 8-year payment plan or the 962 election, this rule will impact you for years to come
- you have no idea whether the proposed rules mean that you have to amend returns, which will double the cost of compliance and headache.
- as a result of the significant impact on business, you or others you know have debated whether to simply refuse to comply and become a tax evader
- Non-Americans do not want to co-found businesses or have you as an investor, given the headache of Repatriation/GILTI taxes involved.
Based on the above, I respectfully request that Americans with small businesses be exempt from the 965 tax.
cross posted from AmericanExpatFinance.com
By Helen Burggraf, Editor – September 08, 2018
A panel discussion that will consider recent and growing efforts to convince U.S. lawmakers to end America’s increasingly-unpopular “citizenship-based” tax regime is set to take place at a venue in the Mayfair district of London, on the 18th of September.
American expats with concerns about the way they are being tax are being invited to the event, which is entitled “What’s next: a light at the end of the tunnel? The possible end of U.S. citizenship-based taxation.”
The discussion will feature Solomon Yue, the Oregon-based global chief executive of the Republicans Overseas, who has been a long-time and visible campaigner on behalf of expatriate Americans, but the event’s organizers say he will be joined in London by tax, legal and citizenship experts from across the political spectrum.
Some tax experts who are determinedly non-political, including at least one non-American, will also participate, the event’s organizers, an un-affiliated group of individuals who include some Republican Overseas members, said.
A question-and-answer period will be held at the end.
This followed an earlier appearance in May in Hong Kong. Yue is set to follow up the London event in coming weeks with similar programs in Paris, Berlin, Frankfurt and Rome, most of which are being sponsored by the respective local chapters of the American Chamber of Commerce.
Among those scheduled to join Yue at the London event will be John Richardson, a Toronto-based lawyer who specializes in citizenship issues, and who is an American-Canadian dual national himself.
He and Yue are also set to participate in another, more informal event on the subject of America’s expat tax regime, also in London, on the 17th of September, at a venue yet to be decided (but probably near Kings Cross Station). More information about this event will be made available in due course, Richardson said.
When: Tuesday 18 September 2018 – 17:30 to 19:00
Where: Central London location – to be confirmed upon RSVP (nearest tube: Westminster)
Venue: To be provided upon RSVP (nearest tube: Westminster)
Cost: Free to attend
RSVP: firstname.lastname@example.org by 17:00 Monday 17 September 2018
UPDATE – Wednesday Sept 12 2018
Due to unforeseen circumstances, Solomon Yue WILL NOT be able to attend the “grassroots” meeting on Monday, September 17 listed below. John Richardson will run this program as scheduled.
In addition the meeting mentioned above, we will have a second, more informal program for expats and their families and friends. This format will be a more intimate question and answer session which will be focused on individuals subject to the CBT regime.
When: Monday 17 September 2018 – 19:00 – 21:00
Where: 40 Bernard St, Bloomsbury, London WC1N 1LE, UK- across from Russell Square Station
Venue: Pret a Manger
Registration: REQUIRED nobledreamer16 at gmail dot com by 5 pm (EDT) Saturday 15 September 2018