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John Richardson - lawyer for
John Richardson - lawyer for "U.S. persons" abroad
@ExpatriationLaw
#FATCA is: The USA should not impose worldwide taxation on people who are tax residents of and live in other countries.- DM's open -
K Daruma Profile picture John Richardson - lawyer for 3 subscribed
Nov 29 • 14 tweets • 3 min read
When it comes to the Moore @USTransitionTax MRT case (to be argued Dec. 5/23) there is almost no agreement on what the case is even about (reflected in the statements of the interviewees.) Some thoughts on what was said ... cnb.cx/3QRdSfu @USTransitionTax 1. Earnings accumulated before 2017 by CFCs were NOT "deferred". They were earnings of a non-US corp, that were not taxable by the US as per US tax law. There was never ANY obligation to bring those earnings into the US tax system. The TJCA created both new income and a new tax!
Nov 26 • 7 tweets • 2 min read
US Model Tax Treaty: Par 4 of Article 1 includes "saving clause" that (1) allows US residents but NOT citizens to be treated as having @taxresidency - as per Art 4 - in treaty partner country + (2) denies US citizens (limited exceptions) treaty benefits. home.treasury.gov/system/files/1…

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Image @TaxResidency Both US citizens and Green Card holders are subject to all provisions (worldwide tax, reporting and penalties) of US tax code. Green card holders (but not citizens) may use treaty (dual @taxresidency tie break) to become "treaty nonresidents" and taxable only on US source income.
Oct 20 • 6 tweets • 2 min read
@goodtaxtakes @Tyler_Menzer Case 4 taxing nonres citizens as the book demonstrates) is (unlike case for taxing GC holders) not based on anything except tradition, ignorance, stupidity and mistakenly equating residence and citizenship. It’s obvious that the author of book doesn’t understand @citizenshiptax. @goodtaxtakes @Tyler_Menzer @CitizenshipTax Cook v. Tait is not about taxation. It’s about the relationship between the state and the citizen as it was understood in 1924 (the citizen was the property of the state). This is discussed in this video.
Oct 12 • 9 tweets • 5 min read
Hypocrisy from @SenateFinance, @RonWyden
+ @MikeCrapo. Complaints abt: 1. Canada's DST tax on US companies CDN SOURCE revenues + 2 Retroactive tax (Hello @USTransitionTax). Ignores USA does both via @citizenshiptax on CDNs #FATCA, #PFIC, #savingclause finance.senate.gov/imo/media/doc/… With this level of stupidity it's hard to know where to begin, but let's start with the fact that the USA itself targets foreign companies AND ESPECIALLY the Americans that work for them though US @citizenshiptax, @USTransitionTax, #GILTI, #PFIC, #SUBPartF finance.senate.gov/imo/media/doc/…
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Oct 6 • 7 tweets • 3 min read
2016 US Model Treaty has a more expansive "saving clause" than OECD and UN "saving clauses". 1. Like the OECD and UN Treaties it "saves" the right to tax US residents (as determined by treaty). 2. It also "saves" the rights to tax its "citizens" period. home.treasury.gov/system/files/1…

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Image 2016 US Model Tax Treaty has three "saving clause" provisions: 1. "Saves" US right to tax its "residents" (as determined under treaty tie break rules). 2. Tax US citizens who are residents of treaty partner country (treaty tie break rules don't apply) 3. Tax former citizens!
Oct 6 • 5 tweets • 2 min read
The 2017 OECD Model Tax Treaty, added a "saving clause". The purpose was to ensure that "residents" (as determined under treaty) would be taxed as residents and NOT as nonresidents. The purpose was to protect the domestic tax base. read.oecd-ilibrary.org/taxation/model…
Image Commentary leading up to the implementation of the OECD "saving clause" confirms the purpose was to ensure that "residents" could NOT be treated as "nonresidents" to gain treaty benefits to which they were not entitled. The commentary explains: read.oecd-ilibrary.org/taxation/preve…
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Jul 7 • 7 tweets • 3 min read
On June 27, 2023 @DanNeidle wrote an insightful article explaining why he does NOT support the US policy of @citizenshiptax. @RobertGoulder - in his 4th of July message - agrees that (with or without #FATCA) the US should adopt residence taxation. forbes.com/sites/taxnotes… .@DanNeidle's article (supported by comments) discusses both the practical (providing examples of it hurts #Americansaroad in the UK) problems and theoretical aspects (how can this be justified at all?) of @citizenshiptax. taxpolicy.org.uk/2023/06/27/cit…
Jun 28 • 11 tweets • 3 min read
June 23 - Pro wing of @Demsabroad hosted @USWealthTax advocate @Gabriel_Zucman: 1. Explains why he DOESN'T agree with CURRENT US @citizenshiptax AND why for MOST #Americansabroad current #CBT NOT justified. 2. Says #FATCA should be replaced with #CRS.
Jun 25 • 9 tweets • 2 min read
Superb article: @Saunderswsj explains generally how inflation leads to higher taxation and specifically the Obamacare 3.8% NIIT. Because foreign tax credits can‘t offset the #NIIT, #Americansabroad pay #doubletax on non-US investment income. The treaty doesn’t protect #expats. Strongly encourage reading Ms. Saunders - @Saunderswsj - article on how the #NIIT works and how inflation causes it to apply to more people (resulting in #doubletax of #Americansabroad). Link behind paywall wsj.com/articles/niit-…
Jun 19 • 12 tweets • 8 min read
All #Americansabroad should listen to Steve Hayes of @FairTaxOfficial where he explains the #FAIRTax. Whether you agree or disagree he makes important points and many observations about the role taxation plays in America. Join movement 4 @FairTaxAbroad! @FairTaxOfficial @FairTaxAbroad Current tax system is complex, incomprehensible, used to punish some and reward others and has expensive compliance and penalty costs. People don't and can't know how much tax they pay. Compliance costs are a "tax on tax". Here is a poster from the Washington, DC Metro (subway). Image
Jun 16 • 4 tweets • 5 min read
Lunch with Jim Bennett (@jbennettatty) of @FairTaxOfficial fame and his wife Christine in Toronto. Jim's visit sparked hope for #Fairtax(ation) in Canada AND USA. @FairTaxAbroad would completely end the US tax nightmare for #Americansabroad. Learn more at fairtax.org Image Great podcasts with Jim Bennett (@jbennettatty) of @FairTaxOfficial. Learn how the #FairTax helps ALL Americans and expecially #Americansabroad in an #FBAR and #FATCA world! prep.podbean.com/e/rethinking-t…
Jun 2 • 6 tweets • 6 min read
How #FATCA IGAs relate to legislation in IRC: To be consistent with FATCA law and avoid the 30% US sanction, IGAs must require the FFIs to close the account of "US Persons" who fail to supply required data (without regard to local #GDPR law). Solutions? law.cornell.edu/uscode/text/26… Image US #FATCA can accommodate Europe's #GDPR only by by excluding @USCitizenAbroad with @TaxResidency abroad from the definition of "U.S. Person". These two screen shots illustrate the problem ... Some thoughts on how this might this be achieved. law.cornell.edu/uscode/text/26… ImageImage
Jun 2 • 4 tweets • 4 min read
How will the US respond to Belgium's claim that the #FATCA IGA violates the #GDPR? Here is my proposal for ending the tax treaty #savingclause which would allow @USCitizenAbroad to become treaty nonresidents for US tax (effectively ending @CitizenshipTax). youtube.com/live/KqtFhae4i… See the "third solution" in the thread below which discusses a number of responses/solutions to this #FATCA and @CitizenshipTax problem
Jun 1 • 7 tweets • 6 min read
@AmerIronCurtain asks: 1. What would it take for Belgium to get out of the #FATCA IGA? 2. What would it take to get out of the #savingclause? 3. Does the Belgium decision mean that the #FATCAIGA is illegal? Interesting questions ... 1. Article 10 of #FATCA IGA contains a notice provision that allows each country to withdraw from the agreement. But, withdrawing from the agreement leaves Belgium "subject" (pun intended) to the direct application of FATCA rules in the IRC (1471 - 1474) home.treasury.gov/system/files/1… Image
May 30 • 12 tweets • 9 min read
An intelligent response which reinforces the #FATCA (sorry fact) that that the real problem is US @CitizenshipTax. The Decision in Belgium underscores that the sole purpose of the FATCA IGAs is to ensure Americans cannot leave the USA and acquire rights denied to US residents. As the @DemsAbroadTax statement states/implies this problem can be solved ONLY if the US joins the world in adopting residence as the criterion for @TaxResidency. Citizenship would no longer be relevant for taxation. But, this is NOT part of any legislative proposal.
Mar 29 • 10 tweets • 8 min read
Ending @CitizenshipTax would mean fewer #Americansabroad caught in this #FATCA, #FBAR enforcement dragnet. What's truly "criminal" is unwillingness of US Gov to allow US citizens who live outside USA with @TaxResidency in other countries to avoid being caught in this crossfire. Report goes on and on about Dan Horsky and a "The Family" (US residents) who used Credit Suisse to (presumably) evade US taxes. It concludes a vast conspiracy and uses this to condemn @DualCitizenship (pp 33 - 337)and justify the hiring of more IRS agents. finance.senate.gov/imo/media/doc/…
Mar 29 • 6 tweets • 4 min read
Canada’s new #FHSA has different kinds. US citizens resident in Canada should avoid those administered by trustee (possibly creating foreign trust for US tax purposes). Stick with the basic “bank account” FHSA with no trustee and no (#PFIC) mutual funds. canada.ca/en/revenue-age… General features of Canada’s new #FHSA: max contribution $8000 per year and $40,000 lifetime. Contributions tax deductible. Growth in plan not taxable. Distribution not taxable if used to buy first home. US citizens in Canada will need special planning. canada.ca/en/revenue-age…
Feb 17 • 13 tweets • 10 min read
@RepBrianHiggins launches campaign seeking "carve out" from Canada's @VacantHomeTax for US citizens. He argues that this CDN tax (based on citizenship) violates US/CAN tax treaty and #USMCA. What about US @citizenship tax and #FATCA imposed on CDNs? higgins.house.gov/media-center/p…
Jan 18 • 9 tweets • 5 min read
Post from @1040abroad (includes) attempts to define who is an ”Accidental American” (not defined in US law). US Treasury has made consistent attempts to help them without defining them. How should “Accidental American” be defined? taxconnections.com/taxblog/being-… via @TaxConnections The first recognition of the problem of "Accidental Americans" is found in the 2015 Obama budget proposal discussed here ... See the screen shots for what was proposed. citizenshipsolutions.ca/2015/02/08/the… ImageImage
Dec 31, 2022 • 17 tweets • 11 min read
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…
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?