What the Canada U.S. FATCA IGA is NOT about
Canada’s FATCA IGA is NOT about information exchange. The United States does NOT exchange information under the FATCA IGAs.
Canada’s FATCA IGA is not about residency. After all the purpose of FATCA is to transfer information from a country where the person DOES actually reside (and is a tax resident) to a country where the person does NOT actually reside (but is deemed to be a tax resident).
What the Canada U.S. FATCA IGA IS about
Canada’s FATCA IGA IS about the Government of Canada surrendering its citizens to the United States (effectively stripping them of their rights as Canadian citizens).
Canada’s FATCA IGA is about assisting the United States in imposing worldwide taxation on Canadian citizens who actually live in Canada, are tax residents of Canada and pay full taxes in Canada. Transition Tax anyone? Do you feel GILTI today? What were you thinking by buying that Canadian mutual fund in Canada?
Canada’s FATCA IGA is NOTHING like the OECD Common Reporting Standard. In simple terms, under the CRS information is transferred from a country where the person does NOT live to a country where he does live. Yes, Canada’s lawyers spent the week of January 28, 2019 to February 1, 2019:
1. Denying each of these obvious points; and
2. Arguing that Canada that Canada has a constitutional right to betray its citizens by turning them over to the United States. Post 1 – February 17, 2019:
The U.S. claim of lifetime tax jurisdiction based ONLY on the fact of having been born in the United States
This is based on a post from March of 2015 which was about the number of so called “Accidental Americans” in the Eastern Townships of Quebec.
Let’s start by listening to the CBC interview with Ali Brunette. Question:
Do these life long residents of the Quebec Eastern Townships (great ski country) seem like U.S. tax evaders to you?
With just two weeks to go before the start of the ADCS-ADSC FATCA lawsuit, U.S. based MLex reporter Paul Merrion has written a nice piece about our upcoming FATCA Canada lawsuit.
The court documents can be accessed on the ADCS-ADSC site. For those who are not up to speed on what has happened so far, you might reference the “FATCA Trial: Law Students Edition” which is found on the Alliance blog. How we got there – Canada’s Standing Committee on Finance May 2014
— John Richardson – lawyer for "U.S. persons" abroad (@ExpatriationLaw) January 15, 2019
2019 – The Trial Begins In the Federal Court of Canada – January 28, 2019
Mr. Merrion’s article contains a nice summary of the legal issues, the impact of the outcome of the decision, a description of the plaintiffs, a summary of the legal issues AND (by discussing Representative Holdings’s 2018 bill) an acknowledgement of the role of “citizenship based taxation”.
— John Richardson – lawyer for "U.S. persons" abroad (@ExpatriationLaw) January 8, 2019
Today I had an interesting conversation with veteran FATCA and citizenship-taxation activist Timothy Smyth. There are few people with his depth of knowledge and insight.
He will be in Washington this week. He is the man in above tweet who deserves your support and funding! Enjoy the insight in his podcasts
Canadian Federal Court FATCA IGA trial at 701 West Georgia Street, Vancouver, British Columbia in JUST 17 DAYS –… https://t.co/OSt8brX8Jk
— John Richardson – lawyer for "U.S. persons" abroad (@ExpatriationLaw) January 12, 2019
Canada is a Westminster Parliamentary democracy. Historically it has had a constitution (British North America Act) which defined how Canada was to be governed. In simple terms: the Federal Government has the jurisdiction to legislate in some areas (example criminal law). The Provincial Governments have the right to legislate in other areas (property and civil rights). These laws are made by democratically elected legislatures. Prior to the Canadian Charter of Rights and Freedoms (April 17, 1982), the only limits on the legislative bodies were jurisdictional. Any law could be enacted. It was just a question of whether it was the Federal Government or the Provincial Government that could enact the law.
In 1982 the Charter of Rights became part of Canada’s constitution. The Charter imposed limitations on the powers of elected legislatures. In other words, there were certain areas of activity that were presumptively beyond the reach of legislatures.
The Alliance For The Defence Of Canadian Sovereignty FATCA lawsuit is a Charter of Rights lawsuit against the Government of Canada. Our claim is the Government of Canada does not have the right to enact the legislation which requires banks to (1) Search for customers who are U.S. citizens and (2) then turn their account information over to the U.S. Internal Revenue Service. In general terms the arguments are based on the theory that by so doing the Government of Canada has violated Charter Rights which include the:
– S. 15 Equality rights; and
– S. 8 rights against unreasonable search and seizure
Essentially the court will be asked to rule that the laws enacted by a democratically elected legislative body (the Parliament of Canada) violate the Constitutional rights of Canadians.
In other words: Does a democratically elected legislature prevail or do the rights of individuals prevail?
Supports of the our FATCA lawsuit might frame the question this way:
Should we have rule by law (the legislature prevails) or rule by justice (the law should be declared unconstitutional)?
On January 11 and 12, 2019 the Runneymede Society is running its annual law and freedom conference. In general terms, the Conference is designed to debate the question of whether there should be limits on the powers of democratically elected legislatures. If so, what should those limits be? How does S. 1 of the Charter interact with the rights enshrined in the Charter? This should be of interest to all of those who are interested in the ADCS-ADSC FATCA lawsuit. You can attend the Conference by Facebook and follow the conference on Twitter Twitter – Hashtag = #RSCON19 Facebook live –
As we move into Thanksgiving Weekend, I am pleased to report that the we have reached an important milestone in the ADCS FATCA lawsuit. As you know, ADCS is suing the Government of Canada for enacting a foreign law – the US Foreign Account Tax Compliance Act (“FATCA“) – on Canadian soil. By so doing Canada violated numerous rights found in the Canadian Charter of Rights and Freedoms. These are Charter rights guaranteed to all Canadians, regardless of where they happened to have been born.
Please take the time to read this important document – the Memorandum of Law – prepared by our lawyers. 2018 10 03 Plaintiffs’ Memorandum of Fact and Law_summary trial_FINAL
We expect the hearing to take place in Vancouver in January of 2019. The history of our FATCA lawsuit to date
The Government of Canada signed a FATCA IGA with the United States in February of 2014. FATCA became operational in Canada on July 1, 2014. Our lawsuit was also launched in 2014. 1. This video which explains the background leading leading up to Canada’s signing the FATCA IGA
2. See the FATCA – @ADCSovereignty Book of Posts that I have written which describes the background to and evolution of the lawsuit.
______________________________________________________________________________ Thanks to all of you have made this possible! Our FATCA lawsuit would never have been possible without each of you. I would like to specifically recognize …
– the generosity of our numerous donors. Incredibly, this has been possible through the donations of ordinary Canadians who have given what they can. Although the amounts donated have been significant to the individual donors, we have not had a single “deep pockets” or Corporate Donor. Thank you again!
– the witnesses and the people who have contributed countless hours of their valuable time
– our plaintiffs: Gwen and Kazia – it takes tremendous courage and conviction to volunteer your name and circumstances to a lawsuit of this type
– our lawyers who have been with us since the beginning
On behalf of the Board of the Alliance For The Defence of Canadian Sovereignty I wish you the best. John Richardson