FATCA, U.S. citizenship-based taxation (which includes much more than taxation) and restrictions on financial and retirement planning are causing many Americans abroad to renounce their U.S. citizenship.
The US Government is well aware of the problem that FATCA (coupled with US “citizenship-based taxation) has caused for Americans abroad.
The proof comes from the following two tweets:
1. 2014 – Don Beyer (currently a Member of Congress) was the US Ambassador to Switzerland from 2009 – 2014. In this interview he acknowledges some of the problems of FATCA (incredibly acknowledging that FATCA has led to divorces.
Considering renouncing US citizenship? Former US Ambassador to Switzerland Don Beyer had early notice and was well aware of the problems that #FATCA was causing #Americansabroad who were simply trying to live in Switzerland. A fascinating interview. https://t.co/wcN7sPqqOi pic.twitter.com/MpZEDGgdeQ
— John Richardson – lawyer for "U.S. persons" abroad (@ExpatriationLaw) October 14, 2018
2. September 24, 2018 – A comment by a Foreign Service Officer in Frankfurt acknowledging the problems the United States has caused for its citizens living living abroad. He also acknowledges that people are renouncing their valued U.S. citizenship. I have linked directly to his comment. But, I suggest that you take the time to watch the whole video. You will see “heart breaking” stories of people who feel that they can no longer remain U.S. citizens. (Thanks to Solomon Yue for his tireless efforts in advocating for tax changes to “Save U.S. Citizenship” for Americans abroad!)
Must see and reach your own conclusion: A US Foreign Service Officer in Germany attending @SolomonYue session in Frankfurt discusses relationship between #FATCA and US citizenship renunciations https://t.co/BGIRjMmImD
— John Richardson – lawyer for "U.S. persons" abroad (@ExpatriationLaw) October 13, 2018
The United States would rather have FATCA than have Americans living abroad.
FATCA is a tool to enforce (what the United States refers to as) “citizenship-based taxation”. In practice (as patriotic as it sounds), “citizenship-based taxation” is actually the U.S. policy of:
Imposing “worldwide taxation” on people who are “tax residents” of other countries and who do not live in the United States.
I will be conducting information sessions (some formal presentations and some informal discussions) during the next few weeks as follows:
Bangalore, India – October 22
Brisbane, Australia – October 25 (with Karen Alpert) – 19:00 – 21:00
Auckland, New Zealand – October 31
Sydney, Australia – November 1 – 19:00 – 21:00 The address is 58A Macleay Street – Entrance near Baroda Street – Potts Point NSW 2011 – There is a train you can get to Kings Cross Station.
Dubai, UAE – November 4
Limassol, Cyprus – November 7
Who: John Richardson, B.A., LL.B., JD (Toronto based lawyer)
When: 19:00 – 21:00
Cost: Free, but preregistration is required for all sessions except the October 25 session in Brisbane (where you can just appear)
Registration: Please send an email to: citizenshipsessions at citizenshipsolutions.ca
This post will be updated as further information becomes available. Feel free to check back!
Although there will be variation from location to location, the topics covered are likely to include:
Information Session – Renounce or Retain US Citizenship?
What: Since the passage of FATCA in 2010 and Australia’s acquiescence in the form of the FATCA IGA (signed in 2014), an increasing number of US citizens resident in Australia have become aware of their US tax obligations. For many the solution has been to renounce US citizenship. This will be an informal and interactive presentation covering questions such as:
· My bank asked for my US SSN? Does that mean I must file US tax returns?
· What does filing US tax returns mean for my super? My Australian investments? Will I be double taxed?
· Does filing both US and Australian taxes defeat the objectives of financial and retirement planning in Australia?
· What is the transition tax? GILTI? Is it still viable for a US expat to own a small business in Australia?
· Will the US ever fix these problems by joining the rest of the world in taxing based on residence rather than citizenship? What is this new “TTFI” that I have heard about?
· How do I renounce/relinquish US citizenship? Do I have to pay an exit tax on my Australian assets?
· How do I determine whether renunciation is right for me?
· If I renounce what happens to my Social Security? My IRA or 401(k)?
· How does renouncing US citizenship affect my ability to travel to the United States?