This is the 4th of seven posts analyzing the “dual citizen exemption” to the S. 877A Exit Tax which is found in S. 877A(g)(1)(B) of the Internal Revenue Code. Please remember that the “dual citizen exemption” is available ONLY to those who meet the “five year tax compliance test”.
1. What is the S. 877A(g)(1)(B) “dual citizen exemption” and why does it encourage those “born dual citizens” to not renounce U.S. citizenship?
2. The history of Canada’s citizenship laws: Did the 1947 Canada Citizenship Act affirm citizenship or “strip” citizenship and create @LostCanadians?
3. The S. 877A “dual citizen” exemption – I was born before the first ever Canada Citizenship Act? Could I have been “born a Canadian citizen”?
4. The S. 877A “Dual Citizen” exemption: The 1947 Canada Citizenship Act – Am I still a Canadian or did I lose Canadian citizenship? (The “Sins Of The Father”)
5. The S. 877A “Dual Citizen” exemption: The 1947 Canada Citizenship Act and the requirements to be “born Canadian”
6. “The S. 877A “Dual Citizen” exemption: I was born a dual citizen! Am I still “taxed as a resident” of Canada?”
7. The S. 877A “Dual Citizen” exemption: “MUST certify tax compliance for the five years prior to relinquishment”
Was I a “Canadian Citizen” at birth and/or Am I still a Canadian Citizen?
The 1947 Canada Citizenship Act and loss of Canadian Citizenship
Canada Citizenship Act 1947
Pursuant to S. 16 and S. 18 of the Canada Citizenship Act, one could lose Canadian Citizenship if your “responsible parent” became naturalized as a citizen of another country.
Example 1 – A person born in Canada, whose family moved to the USA, and the responsible parent became a U.S. citizen (this person would not be a “dual citizen from birth”)
Example 2 – A person born in the USA, to Canadian parents (making the person a “dual citizen from birth”) whose responsible parent subsequently became a U.S citizen.
Case Study: Born A Canadian Citizen – Lost Canadian Citizenship Because the Father Naturalized as a U.S. Citizen – Section 10 of the Canada Citizenship Act
The story of Don Chapman …
- Mr. Don Chapman, who lost Canadian citizenship as a minor when his parents took out American citizenship
Mr. Don Chapman appeared before the Committee on numerous occasions to speak about the issues and his Lost Canadian Organization. He was born a seventh generation Canadian in Canada to two Canadian parents.
In the media, Mr. Chapman has been described as “Canadian as you can get. His great-grandfather was one of the Fathers of Confederation. Don Chapman’s father fought with the Canadian military, and collectively, his family has donated millions of dollars to Canadian universities and charities. The Chapman Library at UBC is named after [Mr.] Chapman’s father, Dr. Lloyd Chapman.”
Mr. Chapman lost his Canadian citizenship against his will and unknowingly as a child when his father moved to the United States to work and was required to take out U.S. citizenship. Although this law was repealed with the enactment of the current Citizenship Act in 1977, which allows dual citizenship, people who had lost their citizenship as minors under the prior Act did not have their citizenship restored. Mr. Chapman told the Committee how he felt about this fact:
These injustices were the reason for the 2009 changes to the Canada Citizenship Act which granted “Lost Canadians” citizenship from birth.
Waking up Canadian – 2009 Changes to Canada's citizenship laws – many people became Canadian citizens from birth https://t.co/34N3aPlX8V
— John Richardson – lawyer for "U.S. persons" abroad (@ExpatriationLaw) February 15, 2016
Relevance to the “born dual citizen” exemption in the S. 877A Exit Tax Rules …
Under Canadian law, the 2009 Amendments corrected these injustices and conferred Canadian citizenship on those affected persons from birth.
Would the United States see it this way? Time will tell.