Category Archives: Investment Migration

Twitter – @InvestmentMigration

I am a proud member of the Investment Migration Council and have spoken at their forums.

The covid 19 pandemic has proven how important it can be to have a second citizenship or residence.

Canadian citizenship: When citizenship in one country affords rights of access to another country

Part I – Citizenship in the 21st century

In the 20th century few people thought much about citizenship. Few people thought about the value of multiple citizenships.

In the 21st century people think about citizenships. People are beginning to see the value of having more than one citizenship. They are also (because of the awareness (caused by FATCA) of U.S. citizenship taxation) beginning to see the value of NOT being a U.S. citizen. (Interestingly U.S. Senator Ron Wyden is claiming that dual citizenship provides enhanced opportunities for tax evasion.)

When people renounce U.S. citizenship they will experience the following changes:

1. For U.S. immigration purposes they cease to be U.S. citizens and are treated by the United States like all other citizens of their country of citizenship; and

2. For U.S. tax purposes they cease to be “U.S. Persons” and become “nonresident aliens”. (This loss of U.S. citizenship may or may not be a benefit depending on their individual circumstances). The definitions of “U.S. Person” and “nonresident alien” are found in “26 U.S. Code § 7701 – Definitions“.

When citizenship may afford enhanced rights of access to other countries

Those with more than one citizenship will remember situations where citizenship in one country provided benefits that citizenship in another country did not. Sometimes the benefits are mundane (citizens of one country paying less for an entry visa than citizens of another country). Sometimes citizenship is a condition for various kinds of “enhanced entry programs” (think the U.S. Global Entry programs that include NEXUS.) Sometimes the benefits are more substantive (visa free access for citizens of country A and no visa free access for citizens of country B). Sometimes citizenship in one country gives the right to live in other countries (think citizenship in EU countries). Sometimes citizenship in one country gives the right to seek specific employment in other countries (think Canada-US-Mexico TN visas.) Sometimes there are tax advantages (the France U.S. tax treaty affords interesting tax benefits for U.S. citizens living in France). Sometimes citizenship can protect a person from extradition requests (civil law countries are reluctant to allow their citizens to be extradited). Sometimes citizenship can protect a person from tax enforcement claims from another country (the U.S./Canada tax treaty affords certain protections to individuals based on citizenship status). Sometimes citizenship can protect a person from certain kinds of taxation (Canada’s “Underused Housing Tax” and the BC “Speculation and Vacancy Tax” are recent examples). The point is that citizenship may (and often does) afford benefits that extend beyond the right to live and work in a country. When considering whether to seek various citizenships or renounce various citizenships it is important to think beyond the basic right to live in a country.

Conclusion: ANY change in your citizenship (whether renouncing U.S. citizenship or acquiring an additional citizenship) should consider the issues raised above!!

Part II – What about Canadian citizenship? What do Canadians give up by renouncing U.S. citizenship? What are the reasons (there are many) why Permanent Residents of Canada should naturalize as Canadian citizens?

Because of generous and easy access to the United States, Canadian citizens who renounce U.S. citizenship give up far less than citizens of many other countries. Furthermore, becoming a Canadian citizen affords many privileges vis-a-vis the United States and Canada.

Rather than list the reasons individually I am pleased (with his kind permission) to refer you to a recent post by Los Angeles based immigration lawyer Parviz Malakouti-Fitzgerald, Esq. The post – Six Benefits of Canadian Citizenship for Access to the U.S. Market – is referenced in the following tweet.

The post has its origins in a recent twitter exchange and begins as follows:

Does being a Canadian citizen offer unique benefits of access to the United States market?

This is more-or-less the question I read on twitter from U.S. citizenship renunciation expert John Richardson last week on the last day of 2023.

“Question on @Quora: Is the only real advantage in being a Canadian in accessing the US market, six months visa free stays & a limited range of professions on the TN visa list which also does not lead do a Green Card? No special concessions or fast track ..”

The author provides an excellent, well researched summary. It not only demonstrates why Canadians give up less by renouncing U.S. citizenship but also why Canadian citizenship is valuable to have.

I encourage you to read the complete post here …

https://www.malakoutilaw.com/six-benefits-of-canadian-citizenship-for-access-to-the-u-s-market

John Richardson – Follow me on Twitter @Expatriationlaw

Interviews with @MyLatinLIfe: Digital Nomad Issues (including taxation for US citizens)

Between March and May of 2023 I had three discussion/podcasts with “Vance” of MyLatinLife.com.

I have put them all in one post. They will be of interest to “Digital Nomads” and “Remote Workers” generally.

Interview 1:

Interview 2:

Interview 3:

John Richardson – Follow me on Twitter @Expatriationlaw

“Dual citizenship affords unique opportunities for cross-border tax evasion” claims report issued by @SenateFinance

As described by AARO (“Association of American Residents Overseas”) in an April 7, 2023 blog post:

On March 29 the Senate Finance Committee Democratic staff issued a report titled “Credit Suisse’s Role in U.S. Tax Evasion Schemes of its investigation of Credit Suisse’s compliance with a 2014 plea agreement with the Department of Justice involving the bank’s participation in a conspiracy to hide offshore accounts from the IRS.

Per Committee chair Senator Ron Wyden’s (D-OR) press release, the report details Credit Suisse’s role in a “potentially criminal tax conspiracy” involving accounts of a U.S. based family that were closed 10 years ago, recycles the Clinton/Bush era tax evasion case by U.S. businessman Dan Horsky, and discusses large undeclared accounts belonging to 23 ultra-high net worth U.S. citizens.

We are surprised that such a large and well-resourced committee working for two years was unable to unearth so little misconduct at a mega-bank that has now collapsed due to mis-management. Most outrageously, the report states that “Dual citizenship affords unique opportunities for cross-border tax evasion,” which gives the impression that ordinary Americans living abroad are prone to criminal tax evasion.

AARO has a meeting scheduled with Senator Wyden’s office in May during our annual Overseas Americans Week, during which we will express our extreme dissatisfaction with this characterization. We will let you know if there are any developments.

AARO deserves thanks and credit from all Americans overseas for publicly pushing back on the report created and published by the Democrat led Senate Finance Committee. The report is outrageous, a waste of public funds and appears to be a “back handed attempt” to justify the hiring of more IRS agents and increasing/justifying the imposition of FBAR penalties. The report is NOT (contrary to media reports) really about Credit Suisse. The report uses Credit Suisse as a “prop” to remind the people of America, that there are some people in America (it all took place ten years ago), who deliberately attempt to evade the payment of U.S. tax. The modus operandi includes moving their money to financial institutions and entities outside the United States. Yes, it’s true. Of course, as an added benefit the Senate Finance Committee gets to demonize Swiss banks (in general) and Credit Suisse (in particular). But make no mistake. The Senate Finance report is NOT about Swiss banks. It’s an advertisement to justify the hiring of more IRS agents funded by the Inflation Reduction Act, to legitimize the imposition of more FBAR penalties and to suggest that Republicans are (somehow) soft on tax evasion.

Why this report is dangerous for U.S. citizens generally and for Americans abroad specifically

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As Goes The “Fairness Of Taxation”, So Goes Civilization: It’s Time To Consider The “Fair Tax”

Introduction

I was recently introduced to the “Fair Tax“. My introduction to the “Fair Tax” was enhanced by the opportunity to host Jim Bennet and Steve Hayes as guests on my podcast. I encourage people to listen to these podcasts here, here and here. You will appreciate the character and commitment of Mr. Bennet and Mr. Hayes.

In simple terms, the “Fair Tax” would replace Subtitle A (Income Tax), Subtitle B (Estate and Gift Tax) and Subtitle C (Employment Tax) of the Internal Revenue Code. These Subtitles would be replaced with one National Sales Tax (currently proposed to be 23%). A general description of how the Fair Tax is envisioned to work is available here. Because the U.S. would no longer be trying to exercise tax jurisdiction outside the United States, it would no longer have to be concerned with the complex rules of international tax, no longer have GILTI and Subpart F rules and U.S. citizens would be free to live outside the U.S. without having the problems of having to comply with two tax systems.

(Notice this means that the U.S. would be taxing ONLY domestic consumption. The U.S. would no longer be taxing income driven by events outside the United States. Because the U.S. would be taxing activity ONLY in the U.S., it would have a “territorial tax system“.)

The purpose of this post is to argue that the adoption of the “Fair Tax” is both better tax policy, but also tax policy that is consistent with the nurturing and growth of a nation that believes in (to borrow the language of Ronald Reagan) the “freedom and dignity” of all Americans. By “all” Americans, I mean Americans who live inside the United States and those who live outside the United States.

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Moving To Mexico From Canada Or The USA

There is definitely at trend toward moving abroad for retirement or other reasons …

I came across this very interesting answer on Quora. There are many people in both the United States and Canada who are looking for a “kinder and gentler nation”. In a Post-Covid world more and more people are realizing that they are not tied to any particular place.

I came across this very interesting answer on Quora. There are many people in both the United States and Canada who are looking for a “kinder and gentler nation”. In a Post-Covid world more and more people are realizing that they are not tied to any particular place.

John Richardson – Follow me on Twitter @Expatriationlaw

Investment Migration Council – June 4 – 6, 2018 – Geneva Switzerland

I am member of the Investment Migration Council. In June of 2018 I was a speaker at the annual Investment Migration Forum in Geneva Switzerland.

John Richardson IMCM (1)

A copy of the complete two day program is here:

IMC-Forum-2018-A4-8-page

The slides for my presentation are here:

Richardson IMC

John Richardson – Follow me on Twitter @Expatriationlaw