Monthly Archives: October 2022

How US Tax Treaties And The “Saving Clause” Prevent Countries From Establishing Retirement Programs For US Citizen Residents

Prologue – The Circumstances Of Your Birth Should Not Determine The Outcome Of Your Life …

The above tweet references a “human interest” story where US citizen children are denied benefits in their country of residence that are available to all people who are NOT US citizens.

The description includes:

New Zealand children born to parents’ who are citizens of the United States face a difficult KiwiSaver choice: Give up your US citizenship, or face a KiwiSaver tax compliance bill of $750​ or more a year courtesy of the US taxman.

A petition has been started at Parliament asking MPs to change the KiwiSaver Act to allow people with KiwiSaver accounts facing the unreasonable demands from US tax authorities to close their KiwiSaver accounts.

The issue surfaced as a result of the plight of Auckland dual national Kira Bacal and her four New Zealand-born children, Harper, 13, Rowan, 10 and twins Malachi and Elias, 8.

It appears that the poor (New Zealand born) Bacal children are finding that the US (or at least US tax preparers in New Zealand) consider their KiwiSaver to be a possible vehicle for US tax evasion! Not only is the KiwiSaver a “trust”, but it’s a “foreign trust” which comes with all kinds of penalty laden reporting obligations and no tax advantages. An excellent analysis of the US tax implications of the New Zealand KiwiSaver is here. The story is somewhat comical in that one gets the feeling that the blame should be placed on New Zealand (and not the United States) for New Zealand’s failure to legislate special exceptions for US citizens living in New Zealand.

So what! They’re Americans and therefore they deserve it (you say)!

A previous post explained that for Americans abroad, changes in the laws of their country of residence can change their tax relationship with the United States. The purpose of this post is to expand on that theme by demonstrating that:

Continue reading

Extradition Is One Way That Changes In Another Country’s Tax Laws May Change Your Tax Relationship With The US

Prologue

As long as the US continues to employ citizenship taxation any changes in US tax law will continue to have unintended consequences on Americans abroad. In March of 2022 I outlined how some of the tax changes proposed in the 2023 Biden Green book would impact US citizens who live outside the United States. As important as US tax changes are, Americans abroad must be aware of how changes in the laws of their country of residence may also impact their “tax relationship” with the United States.

The purpose of this post is provide five simple examples. Some of the examples are based on Canada’s tax laws and others are of a more general nature.

Continue reading

New Location: John Richardson – Information Session – London, UK – Thursday Oct. 13/22 – 19:30 – 21:30

John Richardson – Information Session – London, UK – Thursday Oct. 13/22 – 19:30 – 21:30

What: John Richardson informal information and discussion session for those impacted by US extraterritorial overreach

When: Thursday October 13, 2022 – 19:30 – 21:30

Where: Sutton Arms – Wine Room
6 Carthusian Street, London, EC1M 6EB

Cost: No charge for the session. You may wish to purchase a beverage at the location.

How to get there: There is a map at the bottom of the home page of the Sutton Arms Site:

https://www.sutton-arms.co.uk/

____________________________________________________________________
Continue reading

Those Who Renounced US Citizenship Or Abandoned Green Cards NOT Eligible For Biden Pardon

Synopsis

Introduction

On October 6, 2022 President Biden pardoned certain individuals (prospectively and retrospectively) for the simple possession of marijuana (whatever that means). The full text of the pardon is here.

A Proclamation on Granting Pardon for the Offense of Simple Possession of Marijuana

Acting pursuant to the grant of authority in Article II, Section 2, of the Constitution of the United States, I, Joseph R. Biden Jr., do hereby grant a full, complete, and unconditional pardon to (1) all current United States citizens and lawful permanent residents who committed the offense of simple possession of marijuana in violation of the Controlled Substances Act, as currently codified at 21 U.S.C. 844 and as previously codified elsewhere in the United States Code, or in violation of D.C. Code 48–904.01(d)(1), on or before the date of this proclamation, regardless of whether they have been charged with or prosecuted for this offense on or before the date of this proclamation; and (2) all current United States citizens and lawful permanent residents who have been convicted of the offense of simple possession of marijuana in violation of the Controlled Substances Act, as currently codified at 21 U.S.C. 844 and as previously codified elsewhere in the United States Code, or in violation of D.C. Code 48–904.01(d)(1); which pardon shall restore to them full political, civil, and other rights.

My intent by this proclamation is to pardon only the offense of simple possession of marijuana in violation of Federal law or in violation of D.C. Code 48–904.01(d)(1), and not any other offenses related to marijuana or other controlled substances. No language herein shall be construed to pardon any person for any other offense, including possession of other controlled substances, whether committed prior, subsequent, or contemporaneous to the pardoned offense of simple possession of marijuana. This pardon does not apply to individuals who were non-citizens not lawfully present in the United States at the time of their offense.

Pursuant to this proclamation, the Attorney General, acting through the Pardon Attorney, shall administer and effectuate the issuance of certificates of pardon to eligible applicants who have been charged or convicted for the offense of simple possession of marijuana in violation of the Controlled Substances Act, as currently codified at 21 U.S.C. 844 and as previously codified elsewhere in the United States Code, or in violation of D.C. Code 48–904.01(d)(1). The Attorney General, acting through the Pardon Attorney, is directed to develop and announce application procedures for certificates of pardon and to begin accepting applications in accordance with such procedures as soon as reasonably practicable. The Attorney General, acting through the Pardon Attorney, shall review all properly submitted applications and shall issue certificates of pardon to eligible applicants in due course.

IN WITNESS WHEREOF, I have hereunto set my hand this sixth day of October, in the year of our Lord two thousand twenty-two, and of the Independence of the United States of America the two hundred and forty-seventh.

JOSEPH R. BIDEN JR.

The Winners

Notably the pardon is available ONLY to those who are “current United States citizens and lawful permanent residents”. Clearly a former US citizen who is not a Green Card holder would NOT be eligible.

The Losers

The pardon is NOT AVAILABLE to:

– former US citizens who relinquished their US citizenship

– possibly (depending on interpretation) former lawful permanent residents who abandoned their Green Card

– US Nationals who are NOT US citizens

– non-citizens currently lawfully present in the United Staes under a visa who are NOT current Green Card holders

– current US citizens or lawful permanent residents who were NOT “lawfully present in the United States at the time of their offense” (think undocumented aliens)

And to be very clear

Regardless of current status, if one was not legally present in the United States at the time of offense then one is NOT eligible for the pardon. (Think undocumented aliens at the time of the offense.)

Why should the “status” of the person matter when offering this pardon?

An excellent twitter thread from David Bier discusses this issue …

It’s very clear that in 2022 no person should be convicted of a criminal offense for the mere possession of marijuana. The pardon is offered in recognition of that sentiment. Possession of marijuana is simply not conduct which should be deemed to be a criminal offense. Since the conduct should NOT be deemed a criminal offense, why should the pardon be restricted to those who are:

current United States citizens and lawful permanent residents

The ONLY possible explanation is that ONLY “current United States citizens and lawful permanent residents” are deserving of fair treatment. Who cares about the rest of them?

Let’s put it this way:

Assuming possession of marijuana should not be a crime, it’s still okay to punish those who are NOT “current United States citizens and lawful permanent residents”.

The pardon should apply prospectively and retrospectively to ANY individual who violates this unreasonable law. Why condition the pardon on status?

John Richardson – Follow me on Twitter @Expatriationlaw

John Richardson – Information Session – London, UK – Thursday Oct. 13/22 – 19:00 – 21:00

Attention!! Date, time and location updated!! – Thursday Oct. 13/22 – 19:30 – 21:30 – New location! See here.

___________________________________________________________

John Richardson – Information Session – London, UK – Thursday Oct. 13/22 – 19:00

What: John Richardson informal information and discussion session for those impacted by US extraterritorial overreach

When: Thursday October 13, 2022 – 19:00 – 21:00

Where: Pret A Manger – Directly Across From Russell Square Tube (careful to choose the correct Pret)
40 Bernard Street, London, WC1N 1LE
https://www.pret.co.uk/en-GB/shop-finder/l/london/40-bernard-street/284

____________________________________________________________________
Continue reading