the Japanese Bankers Association is weighing whether divesting of U.S. assets may make better

[riverbendviewgal]

economic sense.

One of the most publicized reactions is a lawsuit filed in Canada by two Canadian-American citizens with negligible ties to the U.S. In their suit against the Canadian Attorney General, the plaintiffs contest the validity of the Canada-U.S. agreement to enforce FATCA in their country. The plaintiffs claim that the agreement violates provisions of the Canadian Charter of Rights and Freedoms and that it undermines the “principle that Canada will not forfeit its sovereignty to a foreign state.” The complaint, drafted by notable Canadian attorneys Joseph Arvay and David Gruber, alleges that Canada’s enforcement of the U.S. law violates affected people’s right to liberty and security by:

- failing to protect them from unreasonable search and seizure, and

- discriminating against them on the grounds of their country of birth.

Here are some examples of people falling under FATCA’s umbrella of U.S. tax cheats:

(1) Accidental Americans – dual citizens with nominal ties to the U.S. (e.g., they were born in the U.S.)

(2) Snowbirds
(3) Non-Americans who have ever worked in the U.S. or appear to have a “substantial” connection to the U.S.
But also getting caught up in compliance requirements are Non-Americans who have joint accounts with a U.S. citizen, such as non-American spouses and “at-risk” trusts and investments with no U.S. ties


http://www.jdsupra.com/legalnews/fatca-trapped-by-the-land-of-the-free-43999/?utm_source=jds&utm_medium=twitter&utm_campaign=international

Read the whole article which is written by American lawyers . I don' know if they are Democratics or Republicans.

[ret5hd]

1. So I take it that you've been penalized by virtue of having a U.S. passport?

Just going by your latest round of posts.

[riverbendviewgal]

2. Never had one.

I am an American Canadian....but citizenship of only Canada. I have a Cdn passport.

I am just being a modern day Laura Secord.

[Art_from_Ark]

3. After reading the links,

and the links provided within those links, I understand what you were getting in another thread where we discussed this. It's not the IRS tax form filing requirement per se that is the problem, but this new FATCA law that is proving to be quite a headache for foreign financial institutions and overseas Americans alike.

[riverbendviewgal]

4. correct.

Plus, the USA is citizen based taxtion, where if you are a US person or have American indica you are taxed wherever you live in the world. Even if you have no intention of living in the USA. The rest of the world is Resident based taxation. So for instance ,people in other countries can travel the world, work and pay taxes only where they live and work.
Citizen based taxation is like a financial wall or curtain to keep US citzens under control. This is not freedom. Filing US taxes are not simple when you live abroad. They must be filed correctly. The IRS is not caring. A mistake can bring very costly penalties. Thousands of dollars of penalties when one owes nothing. The tax compliance industry loves FATCA. Imagine each year you have to pay $1 K to a special tax accountant or more to file US taxes when you owe nothing. Many Americans abroad are relinquishing and renouncing. It is too costly when you have no intention to live in the USA.
There are many expats who have family to visit in the USA and this is a hardship.

I relinquished.

FATCA would work if it was for homelanders who have overseas accounts.
I live in Canada. My bank is down the street from me but the IRS considers it a foreign bank.

I do my own Cdn taxes myself. I did my own US taxes myself along with my Cdn taxes. When I became a Cdn citizen I stopped doing my US taxes.

When I went to high school in America and took US history, which I loved, there was never any mention of citizen based taxation and resident based taxation. Nada.

See The Isaac Brock society for more information.