5 Responses to US Ambassador Jacobson comments on FATCA

  1. Anon says:

    One other… minimization in the Ambassador’s address: “I might add for the record that someone some place might have an anomalous tax situation where they pay tax in Canada yet still owe tax in the United States.”

    This completely neglects issues of RESPs, TFSAs and perhaps also RRSPs. I’d hardly describe a tax grab by a foreign government on such widely available accounts as “anomalous”. The anomaly is the US’s policy of taxing citizens living abroad. Several other parts of this speech on FATCA and FBARs just don’t ring true. The Ambassador, his advisers, or his Washington masters are deliberately covering up the scope of the problem.

    • Expat in CA says:

      Thank you, Anon. I missed that one, but you’re absolutely right. I understand that this whole situation is a huge embarrassment to the US, but that gives them a couple choices. They can retract FATCA, announce that failure to file individuals who owe under a certain amount in back taxes will not be subject to penalties (to take into account things like RRSPs, RESPs, and TFSAs), or they can just lie about what’s really going on and hope that no one will notice. Unfortunately, they seem to have chosen the latter option.

      I think it’s significant that the US Treasury keeps minimizing the administrative costs of implementing FATCA even while many US representatives are freaking out over the administrative costs to banks of implementing similar measures within the States.

  2. CA Freeb says:

    I think I will just contact Jacobson myself. If he has really talked to the head of the IRS then he can just pass along my concerns about the FBAR penalties too. This nonsense needs repealing and if they don’t even they will regret it as soon as they see the cost involved, and how it’s going to affect U.S. holdings all over the world. Nobody is going to invest in the U.S. when all these onerous penalties and with FATCA in place. No one. China has refused to comply. Can’t possibly see any problems there can you? *snark* Do you realize China can just refuse to deal with the U.S. at all or deal with any U.S. customers. There are six hundred thousand Americans living in China. Six hundred thousand. When China starts turning these people away and then takes their business to other countries the implications for the U.S will be astounding in scope. China doesn’t have to play nice with them on this and it will surely put a hurt on the U.S. economy in ways not even dreamed of yet. This is bad, poorly thought out legislation that does far more harm than good. Who are these people we are calling “leaders” because this legislation is so poorly written I wonder if it was done on the back of a napkin at Five Guys during a lunch break on the Hill.

    • Expat in CA says:

      I really think that’s what happened. Certainly, it seems to have been stuck quite sneakily into the HIRE act.

      The principle proponent of FATCA was Senator Levin. I think it says a lot that the contact form on his website isn’t set up to take comments from people living outside the US, and it says explicitly that he probably won’t bother responding to anyone living outside his district. This guy passed a bill that has a tremendous effect on millions of expats without giving them any way to let him know what it’s doing to them. If that’s not the very definition of “taxation without representation,” I don’t know what is!

  3. CA Freeb says:

    Really, I wonder how the website “Hide My Ass” would work to obscure your ip so they wouldn’t reject your comment on his website. Because location is rejected by IP address. The above website hides your ip for browsing purposes. Levin is one of the ones who made the “tax cheats” comments before too. Perhaps, the finance minister needs to know that we can’t comment at all to Levin who put this in place. I didn’t browse Levin’s website as much as I should have. I’ll look for a fax number. I think on a given day we need to fax his office with letters and get our families to do it too so we can flood them.

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