It's not only changes in US law that affect taxpayers but also changes in laws of other countries. Examples: enforcement (treaties), whether tax is owed (Subpart F) and how much tax is owed to the US (foreign tax credits). https://t.co/ovoD240jtT
— John Richardson – lawyer for "U.S. persons" abroad (@ExpatriationLaw) October 13, 2022
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.