Category: Citizenship

The cost of cutting ties with Uncle Sam soar: Tim Harper

Americans living in Canada are in a rush to renounce their citizenship in the face of Washington’s invasive tax grab. OTTAWA – Thomas Jefferson is famously believed to have defined the price of freedom as eternal vigilance. The price of freedom from Uncle Sam is a lot steeper. Faced with… – Continue reading

U.S. Fee to Drop Citizenship Is Raised Fivefold

The fee for individuals to renounce U.S. citizenship is jumping to $2,350 as of Sept. 12—more than five times the current charge of $450. The U.S. State Department, in its explanation for the increase, said that documenting a renunciation is “extremely costly” and requires a minimum of two intensive interviews with… – Continue reading

Canadians File Suit To Block FATCA And Prohibit Handover Of U.S. Names To IRS

A lawsuit has been filed by several Canadian citizens against the Canadian Attorney General in Federal Court in Canada. The legal claim challenges the constitutionality of the agreement the Canadian government struck with the United States. The controversial deal between nations was inked under FATCA—the Foreign Account Tax Compliance Act…. – Continue reading

Gibraltar must prepare for FATCA or risk facing consequences

Gibraltar’s financial community must immediately prepare itself for FATCA or it risks getting caught up in the legislation’s strict international net, says an authority from the jurisdiction. Helvetic, a fund adminstrator based in the British overseas territory, says many financial institutions in the area are underestimating the compliance costs of… – Continue reading

TIPS FOR BEING FATCA COMPLIANT

This June the IRS modified its offshore disclosure programs to encourage U.S. citizens to come forward and report their assets and mitigate risk of penalty or prosecution. To help your clients avoid running afoul of FATCA, a bulletin from PwC advises them to: Determine citizenship. In some cases, non-resident Americans are… – Continue reading

YOUR TAXES: What you need to know about the US-Israel FATCA agreement

On June 30, the United States and Israel signed an intergovernmental agreement (IGA) regarding FAT CA. FAT CA became effective in the US and other countries on July 1 and will officially take effect in Israel once the Knesset passes enabling legislation. But the Bank of Israel has already instructed… – Continue reading

Many expats weigh giving up US citizenship

Fallout from the Foreign Account Tax Compliance Act Almost 80 percent of Americans living abroad are considering relinquishing their U.S. citizenship to escape the consequences of the Foreign Account Tax Compliance Act, according to deVere Group. That represents an increase of 11 points since last year. The Foreign Account Tax… – Continue reading

FATCA Poses Grave Danger for Human Rights Activists

BEIJING: China and the United States of America have recently signed the Federal Account Tax Compliant Act (FATCA), which requires the Internal Revenues Service (IRS) to disclose to China, the bank account information of Chinese-born pro-democracy activists, who fled their homeland to live in America. According to Forbes, “One of the most insidious… – Continue reading

United States: Offshore Tax Enforcement Update: IRS Unveils Major Changes To Voluntary Disclosure Program

Tax Since the 1970s, U.S. taxpayers with foreign banks accounts have been required to annually report their foreign bank account information to the Department of Treasury on a Report of Foreign Bank and Financial Accounts (“FBAR”) by June 30th of each year. In addition to requiring the filing of an… – Continue reading

Australia Ramps Up Efforts To Find Offshore Income, Assets

Australia’s taxing agency is doubling efforts to identify individuals with undisclosed foreign income and assets so they can participate in a streamlined tax program for individuals with offshore assets, the agency said Monday. The Australian Taxation Office said it is sorting through data to identify people with offshore assets so… – Continue reading

QROPS Growing in the USA

Qualifying Recognised Overseas Pension Schemes (QROPS) are becoming increasingly popular in America, due to the loophole represented by a double-tax treaty signed with Malta – a country in the top three jurisdictions of choice since QROPS were introduced. Previously it was largely viewed as near-impossible to arrange for a viable,… – Continue reading

Canadian industry claims win in long fight over U.S. crackdown on tax evasion

Canada’s investment and banking industries hailed a key victory Tuesday in five-year fight to dull the impact of onerous new U.S. tax rules expected to affect about a million Canadian residents and dual citizens. A newly ratified inter-governmental agreement with the United States excludes registered accounts for education, retirement, and… – Continue reading

IRS Will Now Accept an ‘I Was Clueless’ Defense for Offshore Tax Evaders

As the Justice Department winds down its eight-year crusade against Swiss banks selling offshore tax-dodging services to wealthy Americans, the Internal Revenue Service is offering its own parting gift: softer penalties for taxpayers who come out of the woodwork to disclose their secret accounts. Call it the advent of the… – Continue reading

Offshore Voluntary Disclosure Program to aid NRIs with undisclosed assets

The United States government has actively been pursuing NRIs who have undisclosed offshore assets and income. The United States law requires citizens and residents (i.e., green card holders, H1-B visa holders, and other tax residents) to report their worldwide income and complete a Report of Foreign Bank and Financial Accounts… – Continue reading

Bahamas Urged to Push Ahead Citizenship of High-Net-Worth Investors

NASSAU, Bahamas — The government has been urged to implement an investor-citizenship program that would effectively allow high-net-worth individuals (HNWIs) to trade investment in The Bahamas for citizenship rights as a means of spurring growth in the economy. Sean McWeeney QC, a partner with law firm Graham Thompson and Co., is advocating… – Continue reading

Don’t delay law for sharing tax information with U.S., Canada’s investment industry urges

The head of Canada’s investment industry association is urging the federal government not to defer legislation that will facilitate handing tax information of U.S. citizens living in Canada to authorities in the United States. Ian Russell, chief executive of the Investment Industry Association of Canada, made his pitch to the… – Continue reading