Monthly Archives: September 2024

New Travel Requirements For Canadian and U.S. Citizens To Enter Either Europe Or The UK

Summary:

In 2025 citizens of either Canada or the United States (and citizens of many other countries) will require an electronic travel authorization (similar to the US ESTA) to enter the country. This short post is simply to:

1. Alert you to these upcoming requirements; and

2. To point you to the right websites for information.

In general you will be required to pay a nominal fee, enter your passport information and answer some basic questions in order to get the authorization. The authorization will be linked to your passport. The authorizations will be valid for three years for the UK and two years for Europe. Because this is linked to your passport those with a passport expiring in the next few years might want to consider renewing your passport before applying for the authorization(s).

Beware of scammers!

The official European site (linked below) contains the following “heads up” and warning:

Beware of scammers

There is only one official ETIAS website: europa.eu/etias. The application form will be made available on this website once the system is launched, which is expected to be in mid-2025.

There are tens of websites claiming to be the official ETIAS application sites: they use the official EU logo, some even collect travellers’ personal data. While it will be legal for the commercial intermediaries to apply on your behalf once the system enters into force, make sure you use one that you trust: some may steal your personal data, passport number and credit card. They may also charge an additional fee for their services. Remember: ETIAS will only cost EUR 7 if you use the ETIAS official website to apply.

All official websites of the European Union can be recognised by the europa.eu domain.

Europe: Here is the information for the European ETIAS:

https://www.eeas.europa.eu/eeas/coming-visa-free-country-and-travelling-europe_en

UK: Here is the information for the UK ETA:

https://www.gov.uk/guidance/apply-for-an-electronic-travel-authorisation-eta

ESTA: Here is the information for former U.S. citizens and others who are not U.S. citizens:

https://esta.cbp.dhs.gov/esta

I suggest that you apply for each of these early!

John Richardson – Follow me X.com @Expatriationlaw

Separating Citizenship From Tax Residency: The Republicans Overseas Tax Proposal

In 2024 the Republicans Overseas Tax Committee created the following proposal for separating U.S. citizenship from U.S. tax residency. The proposal is three parts which are:

1. A Legislative Fix – changing who is a tax resident from “individual” to “resident”.

2. A Regulatory Fix – changing the regulation to define “individual”in the Internal Revenue Code to mean “resident”

3. A Treaty Fix – narrowing the range of the treaty “saving clause” so that U.S. citizens who are tax residents of other countries can use the “treaty tie break” provision to be treated as nonresidents.

Ending the Unjust Taxation of Overseas Americans

A September 2024 twitter discussion of the proposal is here along with a link to a series of videos made by John Richardson and James Gosart:

John Richardson – Follow me on X.com @ExpatriationLaw

Canada’s new “citizenship by descent” law may benefit many U.S. citizens in unanticipated ways

Introduction and purpose of this post

In response to a 2023 Canadian court decision the Government of Canada is enacting a new law – Bill C-71. (A good analysis of the court decision is here). Assuming it is enacted, Bill C-71 may create an opportunity for certain U.S. citizens to become Canadian citizens at birth. This will this give them the usual benefits of citizenship (right to live and work in Canada). But, it may also allow them to accumulate wealth in the United States, move to Canada, renounce U.S. citizenship and avoid paying the 877A Exit Tax. Once again, we see the U.S. Tax Code has created a hierarchy of U.S. citizens. Those born with dual citizenship (U.S. and another citizenship) are “preferred U.S. citizens”. Those born with dual citizenship are the Brahmins of the USA and those born with only U.S. citizenship are the “Sudras” of the USA. In the same way that a change in a country’s criminal laws can impact extradition TO the United States, a change in a country’s citizenship laws can facilitate escape FROM the United States.

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Expanding eligibility for Canadian citizenship: Bill C-71 opens up a possible never-ending chain of citizenship

Bill C-71 opens up a possible never-ending chain of citizenship

Bill C-71 sets out to allow Canadians to pass on their citizenship to any of their children born abroad past the first generation and expands “Lost Canadians” to cover a much larger number than before.

It is fraught with potential unintended consequences.

The bill is in response to a ruling by the Ontario Superior Court of Justice in 2023, which declared previous limitations for citizenship transmission unconstitutional. Essentially, the court objected to a limitation inherent in previous citizenship laws that prevented Canadian citizens born outside Canada from passing on citizenship to a child also born abroad, or for an adopted child born outside Canada.

To remedy the issue, Bill C-71 uses residency as the “substantial connection test.”

However, the new standard in Bill C-71, which requires a foreign-born Canadian parent to have spent a total of 1,095 days in Canada prior to the birth or adoption, differs significantly from what is required of new Canadians.

Specifically, while in both cases the parent must have spent 1,095 days (the equivalent of three years) in Canada, new Canadians must have done so within a five-year time limit.

Bill C-71 places no such time limit to accumulate 1,095 days of residency in Canada for foreign-born Canadian citizens in the same circumstance.

This lack of a timeframe for meeting the critical requirement for passing on citizenship to descendants suggests the government has failed to fully consider the implications of such an open-ended condition.

The number of people potentially affected is significant.

There are an estimated four million Canadians living outside Canada. About half of them were born abroad.

As of 2017, two-thirds of them lived in the U.S., with another 15 per cent in the U.K., Australia, France and Italy – the total living in all other countries has unsurprisingly risen from 14 per cent in 1990 to 20 per cent in 2017.

This trend is significant in the context of Bill C-71: for second- and subsequent-generation expatriates in the U.S., EU and other politically stable places, seeking Canadian citizenship may not be a priority. It is likely a higher priority for those in other countries with less secure conditions.

Fueling the issue triggered by Bill C-71, expatriates as a whole are older than Canadians living in Canada – 45.3 years old compared to 41.7. Citizens by descent are much younger, at an average age of 31.7.

Without an established timeframe, it will be challenging or impossible for the federal government to accurately predict citizenship acquisition year over year.

Same rights, divergent pathways

Consider these scenarios:

My grandson was born in Europe. He cannot pass down Canadian citizenship to any future child. Under C-71, he would have that right, but only after first spending 1,095 cumulative days in Canada. One strategy would be to attend a Canadian university and accumulate most or all of the 1,095 days while getting a degree.

Consider a Canadian born abroad who maintains a cottage in Canada and spends summers there. Spending eight weeks a year in Canada, it would take nearly 20 years to acquire the right to give their descendants Canadian citizenship.

For second-generation Canadians who spend most of their life abroad, the road is even longer. Perhaps they make occasional trips to Canada, accumulating days to meet the 1,095-day requirement. But they would not likely meet the threshold unless they choose to return permanently in retirement.

Many descendants who are temporary residents either through a job transfer or as spouses of skilled workers or students would likely meet the physical-presence requirement. Temporary foreign workers on seasonal or short-terms contracts, on the other hand, would likely not meet the requirement.

The first two scenarios are manageable given that the physical-presence requirement for most would be met within a defined time period. In the latter situations, it is impossible to forecast if or when descendant citizenship rights would eventually be required.

Questions persist as Ottawa prepares Citizenship Act amendments

Birth tourism is rising again post-pandemic

Immigration Refugees and Citizenship Canada (IRCC) needs to determine and share estimates for the approximate number of new citizens expected under the change, along with the incremental workload and resources that are required before the bill goes before committee.

Media in India are characterizing Bill C-71 as legislation that “will open up the chain of citizenship without end as long as the parents have spent at least 1,095 cumulative days.”

Arguably, this change moves Canada closer to a hybrid jus sanguinis/jus soli regime, as it will make it possible for families to maintain intergenerational Canadian citizenship through different scenarios, which currently is not possible.

It may also provide opportunities for longer-term sophisticated foreign-interference efforts by countries like China and India by exploiting descendants who can acquire Canadian citizenship in their recruitment strategies.

Another question that remains unanswered is how many “Lost Canadians” want to be found. As seen in previous efforts to respond to public pressures, the actual number of those who request citizenship proofs is relatively small, at an average of just 1,500 per year between 2009 and 2022. (Similarly, the low number of expatriates who register and vote is another indicator that interest may be limited.)

However, the potential impact of Bil C-71 could be potentially large. So, before the government enshrines a new pathway to citizenship for some, all of the facts need to be properly considered.

Canadian citizenship is a precious gift. At the committee stage, members of Parliament must be able to fulsomely examine the implications of an open-ended residency requirement and consider establishing a specific time frame of five or 10 years.

This article authored by Andrew Griffith first appeared on Policy Options and is republished here under a Creative Commons license.

Town Halls: Tuesday Sept. 17/24 – @RepOverseasTax Introduces Its Tax Proposal For Americans Abroad And Invites Discussion

Update September 23, 2024:

Here is a link to the “Town Hall Discussion”

_________________________________________________________________________

There are two sessions coming up – both on X.com

Tuesday September 17:

North America – Note this 8 p.m. EDT

Rest Of World – Note this is 2 pm EDT

Feel free to attend either or both. Looking forward to discussion!

If you can’t make the town halls, here is a series of short videos created by John Richardson, Jim Gosart and Jonathan Constantine which explain why the cancerous tumor of citizenship taxation needs to be removed!!

Finally, here is the Republicans Overseas tax reform proposal for U.S. citizens living outside the United States.

Ending-the-Unjust-Taxation-of-Overseas-Americans-1

John Richardson – Follow me on X.com @ExpatriationLaw