Jack Russell kept inside it's yard by the "invisible dog fence" is exactly like an individual U.S. citizen who uses a CFC to attempt to carry on a business outside the USA under the new #GILTI regime. Q. What kind of dog are you? A. Ask your tax accountant https://t.co/BQb1RePQ3f
— U.S. Transition Tax – Subpart F and #GILTI (@USTransitionTax) January 29, 2018
2018 has been a difficult year for Americans living outside the United States who operate small businesses through corporations. The tax compliance community is still interpreting Section 965 of the Internal Revenue to require them to “turn over” a percentage of their assets to the U.S. government.
For those who don’t understand what the “transition tax” is:
My comment to the article on the @USTransitionTax that appeared in today's Financial Times https://t.co/zBdXxk8nGz. The actual article is here https://t.co/Ch99owa1Ri pic.twitter.com/Bt0Vems8t2
— John Richardson – lawyer for "U.S. persons" abroad (@ExpatriationLaw) February 5, 2018
Okay, sorry the text in the above image is a little small. But, my point includes, that the “transition tax” is: (1) retroactive taxation (2) on income that was specifically NOT subject to U.S. taxation at the time that it was earned (3) without any triggering event whatsoever (4) that is an attempted tax grab before the host country can tax it (5) in a way that absolutely results in double taxation (6) that is in effect a confiscation of the “pensions” of Americans abroad. Yes, it’s true and NO U.S. TAX PROFESSIONAL HAS EVEN ATTEMPTED TO SUGGEST THAT POINTS 1 – 6 ARE FALSE.
The purpose or this post is to:
1. Review what has happened during the last year; and
2. Strongly encourage you to support Monte Silver (a U.S. tax lawyer based in Israel) in his organizing a lawsuit against U.S. Treasury for not having complied with various statutes in the implementation of this law. See Silvercolaw.com or contact Monte at ms@silvercolaw.com
1. 2018 – A review of “transition tax education advocacy – a tweet at at time”
Almost one year ago to the day, the Alliance For The Defence of Canadian Sovereignty issued a press release warning people about the proposed Section 965 of the Internal Revenue Code:
November 24, 2017 @ADCSovereignty press release asking U.S. Congress not to harm Canadians by imposing retrospective taxation on Canadian Controlled Private Corporations https://t.co/smQYCY6niP
— John Richardson – lawyer for "U.S. persons" abroad (@ExpatriationLaw) December 8, 2017
In 2018 Karen Alpert of Fix The Tax Treaty and I created a 7 part video series explaining the mechanics of this tax and questioning whether it could ever have been intended to apply to Americans abroad.
In January of 2018 @Expatriationlaw and @FixTheTaxTreaty created a 7 part video series on the @USTransitionTax – In Nov of 2018 @MonteSilver1 suggests #Americansabroad impacted by this confiscatory measure are forced to consider consider litigation https://t.co/W2Ve5PI5iM
— John Richardson – lawyer for "U.S. persons" abroad (@ExpatriationLaw) November 23, 2018
During 2018 I wrote a series of posts (approximately 25) which were designed to educate people about the dangers of what I called a “retroactive tax” on “fake income”.
About the @USTransitionTax – 25 educational posts which explain how the USA is attempting to confiscate the assets of #Americansabroad by (1) imposing retroactive tax on small business income and (2) attributing the income to u in violation of tax treaties https://t.co/nWvpkGNOFg
— John Richardson – lawyer for "U.S. persons" abroad (@ExpatriationLaw) November 23, 2018
This series of post received wide distribution through Tax Connections.
In April of 2018 in a webinar with “Tax Linked” – Karen Alpert explains an important aspect of the “transition tax”
Brilliant! @FinMusings explains how @USTransitionTax allows USA to collect tax on income that never would have resulted in U.S. tax payable! By changing timing and "frontrunning" USA creates a "fictional event" to tax CDN income before Canada can tax it! https://t.co/hnDu6x7y5K
— John Richardson – lawyer for "U.S. persons" abroad (@ExpatriationLaw) April 4, 2018
This did not escape notice and concern. In the Spring of 2018, CBC Reporter Elizabeth Thompson wrote a series of article about the “transition tax” and its impact on the small businesses of Canadian businesses and residents.
Spring of 2018: "The Canadian Media Notices the @USTransitionTax: See @LizT1 series of post which explains how the #transitiontax operates to confiscate the pensions of many Canadian citizens living in Canada https://t.co/qDqLjdLcb7 via @ExpatriationLaw
— John Richardson – lawyer for "U.S. persons" abroad (@ExpatriationLaw) November 23, 2018
A number of people worked “behind the scenes” attempting to effect change. U.S. Treasury did provide some assistance by creating delaying the date for payment of this tax. In both cases, Israeli lawyer Monte Silver was a leading advocate for change.
Monte Silver: U.S Treasury Grants Americans Abroad One Year Reprieve From the June 15, 2018 Repatriation Tax Payment https://t.co/NxBrGlXKIJ
— John Richardson – lawyer for "U.S. persons" abroad (@ExpatriationLaw) November 23, 2018
This payment delay did NOT happen by accident. It was the result of hard work and persistence: Bulletin – June 4, 2018: It appears that the first payment for the @USTransitionTax will be delayed for some https://t.co/GYmEfPQwkU via @ExpatriationLaw
— John Richardson – lawyer for "U.S. persons" abroad (@ExpatriationLaw) November 23, 2018
Speaking with Monte Silver …
Interview 1 – October 16, 2018
Interview 1 – October 16, 2018 @Expatriationlaw John Richardson and Monte Silver @MonteSilver1: The Sec. 965 Transition Tax – About the "Regulatory Flexibility Act" https://t.co/HzlRAirNE6 via @YouTube
— John Richardson – lawyer for "U.S. persons" abroad (@ExpatriationLaw) November 23, 2018
Interview 2 – November 15, 2018
Interview 2 – November 15, 2018 @Expatriationlaw John Richardson and Monte Silver @MonteSilver1: The Sec. 965 Transition Tax & Sec. 951 – All roads lead to litigation https://t.co/Kv30uxoc7R via @YouTube
— John Richardson – lawyer for "U.S. persons" abroad (@ExpatriationLaw) November 23, 2018
Bottom line …
2. Monte Silver has supported you. It’s time for to support Monte’s efforts to support you – Yes, the lawsuit needs to be funded and it can only be funded by you.
Monte Silver, on behalf of all Americans abroad,is organizing a “transition tax” lawsuit against U.S. Treasury.
Yes, the lawsuit does require fund raising.
There is good news for small businesses that have yet to file their 2017 returns and have until Dec. 15 to do so. Monte will assist you minimize your Transition tax liability and provide guidance to your U.S. CPA in how to do so in exchange for an agreeable upon donation to the lawsuit.
Further information about the Transition/GILTI advocacy and the lawsuit is available at: www.smallbusinessesfortaxfairness.com/