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John Richardson - lawyer for
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Dec 30, 2022 • 10 tweets • 5 min read
Lots of discussion on "reciprocity" question. What does "reciprocity" mean? Q. Is it possible for there to be "reciprocity" when "obligations" are in the form of an agreement (possible contract) or where the contract is the result of duress? Consider the following examples ...
What if Mr. A makes Mr. B "an offer he can't refuse"? Mr. B agrees to the obligation. Is this "reciprocal" or is this an agreement under duress? Can one really say this "classic" staple of American culture - is an example "reciprocity? Is it thuggery?
A second example ... neither Roxie nor Mamma Morton is behaving in a spirit of kindness/generosity. What is called "reciprocity" is about avoiding sanction (which is why all governments entered into #FATCA IGAs).
IRC 1471 imposes sanctions. Reciprocity?
Wikipedia: Can it be said that #FATCA IGAs bind US and Argentina equally when there is an unequal level of exchange? Or reciprocal because the US and Argentina equally commit to their respective unequal levels of exchange? Reciprocity without equality? en.wikipedia.org/wiki/Reciproca…
A reminder that in Article 6 of the US/Argentina #FATCA IGA the US expressly acknowledges the lack of equivalence in information exchange which weakens any claim of "reciprocity". home.treasury.gov/system/files/1…
Wikipedia: This article implies that "reciprocity" is something that is undertaken voluntarily and is not the result of obligations undertaken in a formal agreement. If this is the case how could a #FATCA IGA ever be reciprocal? en.wikipedia.org/wiki/Reciproci….
Bc "reciprocity" is contextual it can't have one meaning, but is recognized both in its presence and absence. Mutuality of obligation (in #FATCA IGAs) is not the same as "reciprocity". The word "reciprocal" suggests "good will" in the context of coercion.
A lengthier discussion of why the #FATCA IGAs are NOT "reciprocal" ... citizenshipsolutions.ca/2022/07/24/the…
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More from @ExpatriationLaw

John Richardson - lawyer for
Dec 31, 2022
Notice 2023-11: Temp relief provided to banks under Model 1 #FATCA IGAs who can't provide SSN numbers of #Americansabroad ("preexisting accounts only") if the gov joins banks in taking specific steps to educate individuals about FATCA + @CitizenshipTax. home.kpmg/us/en/home/ins…
Purpose of Notice 2023-11 is to ensure that banks in a Model 1 #FATCA jurisdiction won't be deemed to be "non-compliant" with the IGA if they can't provide a US SSN for "pre-existing accounts". The notice can be accessed and read in its entirety here ... irs.gov/pub/irs-drop/n…
Step 1: The relief is available to the banks in a Model 1 #FATCA IGA jurisdiction and ONLY if the government of the jurisdiction commits to engaging with (1) individual US citizens (2) the banks and (3) US Treasury to facilitate compliance. Image
Read 14 tweets
John Richardson - lawyer for
Dec 29, 2022
Excellent article by @HelenBurggraf explaining that the new Argentina IGA (like previous #FATCA IGAs) is NOT reciprocal. An earlier and lengthy expose explaining in detail why #FATCA IGAs are NOT and likely will never be reciprocal agreements is here ... citizenshipsolutions.ca/2022/07/24/the…
The remarks from Ambassador Stanley are clearly designed to suggest the US Argentina #FATCA IGA is "reciprocal". Whether by accident or design this statement is not accurate.
It is useful to examine the exact text of the US Argentina #FATCA IGA to determine what Argentina is required to do and what the US is required to do and decide whether the agreement is reciprocal. home.treasury.gov/system/files/1…
Read 10 tweets
John Richardson - lawyer for
Dec 20, 2022
#RBT countries understand "saving clause" to protect the internal tax base. Bc of @citizenshiptax + #FATCA US uses "saving clause" to BOTH PROTECT internal tax base + EXPAND tax base by claiming people with @taxresidency in other countries as US taxpayers. taxconnections.com/taxblog/croati…
Both OECD + UN Treaties include a "saving clause" which "saves" right of a country to tax its "residents". All countries (including the US) make "residency" a sufficient condition for @taxresidency. Only the US has @citizenshiptax. Hence, "saving clause" speaks only of residents.
The evolution of the "saving clause" found in US Tax Treaties is VERY (really) interesting. Watch how they become tighter over time. Here is paragraph 3 of Article 4 of the 1973 US Romania Tax Treaty. It applies to (1) "residents" (as defined by treaty) and (2) "citizens".
Read 12 tweets
John Richardson - lawyer for
Dec 16, 2022
Appears a delay in processing US tax forms is making it difficult for Canadian residents to comply with their Canadian tax obligations. Nobody told them about the perils of the cross border tax world when one lives in Canada and is paid for working in US. cbc.ca/news/canada/wi…
The relevant treaty provision ... canada.ca/en/department-…
Article XV says that the salary earned by the Canadian resident nurses who work in the USA "may" be taxed by the USA. Article XXIV par 3 says that the income is "sourced" to the USA which gives the USA the first right of taxation ... canada.ca/en/department-…
Read 6 tweets
John Richardson - lawyer for
Dec 10, 2022
When flying over international waters or on a cruise ship in international waters, US citizens are indeed subject to double taxation bc and only bc of US citizenship. Explained by @1040Abroad and @Expatriationlaw here … citizenshipsolutions.ca/2022/01/20/air…
To clarify it is US citizens with @taxresidency in another country that are subject to #doubletaxation. Think pilots, cruise ship employees and #Americansabroad who work on the plane. See this podcast with Jim Gosart of @RepOverseas where we discuss.
The #doubletaxation of income earned in intl waters is one more consequence of @citizenshiptax and another example of how #Americansabroad are taxed more punitively than US residents. Here is a series of podcasts with @RepOverseas explaining the problems citizenshipsolutions.ca/2021/11/30/rep…
Read 5 tweets
John Richardson - lawyer for
Dec 9, 2022
.@NYTimes author @AmandaTaub discusses Brittney Griner trade for Victor Bout. The following excerpt suggests Russia may not see the trade as "an arms dealer for a minor drug offender". Russia may see the trade as securing the return of a person victimized by unfair US process.
@nytimes @amandataub The recent @AmandaTaub article referenced in above tweet is here ... …saging-custom-newsletters.nytimes.com/template/oakv2…
Interesting discussion of the Victor Bout charge and trial here ... latimes.com/world/la-xpm-2…
Read 7 tweets

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