Monthly Archives: September 2025

U.S. “College Bound” Students Should Consider Educational Opportunities To Study Abroad

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The purpose of this post is captured in the following tweet:

I have been meaning to write this post for some time. I am motivated today because of a chance conversation with a couple yesterday. Turns out that their daughter had decided to attend university in Ireland. Apparently, she had applied to a number of U.S. schools and had a mixed record of acceptance. Attending school in the USA would have cost the family approximately $70,000 USD per year.

The daughter applied to well known university in Ireland, was accepted and will pay approximately $22,0000 per year. That’s approximately $200,000 in saving over a four year period!!

I then remembered an article – dated April 8, 2025 – in the Boston Globe where Globe writer Carrie Simonelli described how her daughter was interested in attending McGill University in Montreal. Ms. Simonelli’s article included:

Politics aside, for students, financial considerations always weigh heavily. On average, US students going to Canadian colleges pay between $20,000 and $30,000 a year in tuition (in US dollars), Miller, of Universities Canada, says. For comparison, in Massachusetts alone, more than a dozen private schools charged at least $60,000 in tuition for the current school year, with Williams College topping the list at $72,170 — without factoring in the cost of living on campus.

The strength of the US dollar versus Canada’s also helps bring costs down. And, aid through the FAFSA application and other sources may still be an option: American students at 64 of Canada’s universities are eligible for federal US student loans, says Mark Kantrowitz, the creator of Finaid.org and the author of How to Appeal for More College Financial Aid. In addition, he says, the Canadian government offers a small — though highly competitive — number of scholarships for international students.

The comments to the article are interesting and varied. Generally, they focus on the experience of living in Montreal, the quality of McGill as a school and the opportunity to experience life outside the United States.

On June 6, 2025 the Globe published some letters to the editor (including my own) in response to Ms. Simoelli’s article. The letters included:

Headed North

I enjoyed reading “The Lure of Canadian Colleges” (April 13). Nine years ago my daughter and I visited McGill on a college road trip. Alas, she went to UMaine because she wanted more green space. But I fell in love with Montreal! It has such a European flavor. The cafes, patisseries, and restaurants are all so fabulous. I visited Montreal at least twice a year and in 2021 I purchased a condo there. I’m retired now and I spend a significant amount of time in Montreal. McGill has excellent academics and is right in the middle of downtown.

George Hom

Needham

As a Toronto-based lawyer who assists US citizens and green card holders living in Canada, I read this article with great interest. I have always believed that attending university in Canada is a wonderful opportunity for US residents seeking post-secondary options. Leaving aside other considerations, schools like McGill offer excellent opportunities at much lower cost than comparable US schools. There is a second benefit: There are various ways to leverage the student visa into permanent residence in Canada and eventually citizenship. This is a distinct advantage for those who see the value in dual citizenship.

John Richardson

Toronto

Trump bump? Try: “brain drain.” We’re going to lose scientists, international scholars, and our own smart young people who have good reasons to give up on this country.

somervilleny

posted on bostonglobe.com

Students in my town have been going to Canada for college for quality, affordability, and proximity to Mass. since we moved here in mid 2000s. Smart move.

Tess McGill

posted on bostonglobe.com

If I were a young person, I would ABSOLUTELY flee to Canada faster than you can say “Eh.” Trump is shredding our democracy, and Canada has a very tolerant society.

Mbbs

posted on bostonglobe.com

Acquiring dual citizenship – An additional reason to consider studying abroad for a post-secondary degree

If properly planned, study abroad can create pathways to obtaining residence and citizenship in that country. This can sometimes be achieved at little or no additional cost to the education. Canada’s Post Graduate Work Permit is the springboard to one of the best second citizenship programs in the world.

The acquisition of citizenship can benefit a family for generations.

When considering educational opportunities abroad it makes sense to consider what those opportunities might imply for citizenship or permanent residence leading to citizenship in that country. Some countries have opportunities. Others don’t.

Why a second citizenship may be a huge asset

To put it simply:

Citizenship gives one the right to live and work in that country. Obviously this would enhance life and professional opportunities.

Q. Do you want to create an option to leave your country of residence?

A. If you have to get a university degree anyway, why not explore options that are (1) more cost efficient and (2) create opportunities for future live mobility.

In conclusion …

It is possible to study abroad AND leverage that “study abroad” into a second citizenship.

In a world where multiple citizenships have increasing value, the possibilities of studying abroad are more valuable than ever.

John Richardson – Follow me on X.com @ExpatriationLaw

Change In Canada Voluntary Disclosures Program And Avoiding T1135 Penalty

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Introduction and purpose

Effective October 1, 2025 there will be changes in Canada’s Voluntary Disclosures Program (VDP). The changes may make it easier to correct mistakes related to Form T1135. A general description of the new program is here

Form T1135 – Some background.

In 2019 I wrote a series of posts about Canada’s T1135 requirement. In simple terms, Canada’a T1135 form is where tax residents of Canada report their “Foreign Property” to the Canada Revenue Agency. Form T1135 is a combination of the U.S. FBAR and Form 8938 requirements. “Foreign Property” is defined in S. 233.3(1) of the Income Tax Act of Canada. A summary from the Canada Revenue Agency is here. It would be prudent for all tax residents of Canada to read this carefully. The penalties for failure to file Form T1135 are significant. Notably the requirement to file Form T1135 is independent of whether any taxable income is generated from the foreign property. It is likely that there are many tax residents of Canada who are unaware of this requirement.

Historically, fixing T1135 noncompliance has been achieved through Canada’s “Voluntary Disclosures Program”.

Prior to October 1, 2025 – A general description of the Voluntary Disclosures Program
https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/ic00-1/ic00-1r6-voluntary-disclosures-program.html

From October 1, 2025 – Canada’s new Voluntary Disclosures Program – Correcting unintentional filing errors and omissions such as Form T1135

Effective October 1, 2025 the Canada Revenue Agency will be administering a new and simplified “Voluntary Disclosures Program (VDP)”. Generally the program will be more accessible than in previous years. The announcement is here. The Canada Revenue Agency description is here.

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Bonjour Part 5 – U.S. Treasury Appeals The Bruyea And Christensen Cases – Can A Tax Treaty Provide A Credit Independent Of The Internal Revenue Code?

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Introduction

This is the fifth in a series of posts about “treaty based” foreign tax credits. Previous posts have discussed how the Bruyea and Christensen cases resulted in court rulings that U.S. tax treaties can create a foreign tax credit that is separate from and independent from tax credits allowed under the Internal Revenue Code. Of course, this depends on the terms of the treaty.

The facts as described in the Bruyea breif – filed September 2, 2025

STATEMENT OF THE ISSUES

Whether the Court of Federal Claims correctly determined that the income tax treaty between the United States and Canada (the “Canada Treaty”)1 allows a U.S. citizen resident in Canada to claim a treaty-based foreign tax credit against the net investment income tax (the “NIIT”) imposed by Section 1411 of the Internal Revenue Code of 1986 (26 U.S.C. — the “Code”).

SUMMARY OF ARGUMENT

For over 80 years, Canada and the United States have had income tax treaties in place, with the primary goal of preventing double taxation of the same income. Article XXIV of the Canada Treaty, entitled “Elimination from Double Taxation,” advances this purpose by providing that certain taxes imposed by each country are eligible for a foreign tax credit — a “treaty-based foreign tax credit” — even if otherwise not permitted under the internal laws of either country.

In 2010, Congress enacted the net investment income tax, the NIIT, which imposes a 3.8 percent tax on certain investment income generated by U.S. citizens (including those living abroad) and U.S. residents. Code Sec. 1411. For the 2015 tax year at issue, the Appellee, Paul Bruyea (the “Taxpayer”) was subject both to (1) Canadian taxation by virtue of his Canadian tax residency and (2) U.S. taxation by virtue of his U.S. citizenship. In that year, he sold real property located in Canada and paid more Canadian federal and provincial income taxes on that real estate gain than what he would have owed in total U.S. income tax and NIIT. As the Code does not provide a foreign tax credit — a “Code-based foreign tax credit” — against the NIIT, the IRS collected the NIIT on that same investment income on which he paid tax to Canada, resulting in double taxation. Here, the Taxpayer claims entitlement to a treaty-based foreign tax credit under Article XXIV of the Canada Treaty to offset the NIIT.

Framing the issue in the Bruyea case in simple terms:

The argument for allowing the credit: Bruyue argues that one would reasonably interpret the Canada/US tax treaty to allow a U.S. resident or citizen a foreign tax credit in the amount of the Canadian tax paid on that same income taxable, received at that same time, under the Internal Revenue Code.

The argument for denying the credit: U.S. Treasury argues that credit for the Canadian taxes paid on the income taxed by the United States is allowable ONLY to the extent that U.S. internal law (Internal Revenue Code) allows the credit.

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“13 Reasons Why” I Committed Citizide By Renouncing US Citizenship By Jane Doe

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13 Reasons Why I Committed Citizide

Note: The following brilliant essay was written by a former client of mine. I originally posted it in 2017 on Medium here. My introductory comments in 2017 are (I think) worth considering. If you want help with deciding whether to renounce U.S. citizenship feel free to reach out.

(Inspired by the television series, 13 Reasons Why)

Hey, it’s Jane. Jane Doe. Settle in because I’m about to tell you the story of my renunciation. More specifically, why I gave up my US citizenship. And if you’re reading this article, you’re probably thinking of doing it too. I can’t expect you to understand exactly how I feel; each person has a unique set of circumstances, a deeply personal mix of conflicting emotions, fears and problems that shape their response. But I can tell you why I did it. Let me start by saying, don’t believe everything you hear.

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