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Citizenship Taxation Online Event: View Questions Below And Watch TaxConnections Live Stream Event On Friday, May 17th 2019



Citizenship Taxation Live Stream Event

You are all invited to TaxConnections Live Stream Event with speakers John Richardson and Edward Zelinsky on Friday, May 17th 2019. Register Here and we will send you updates and reminders how to access this event. Both lawyers are experts on the topic of worldwide taxation and offer two perspectives on the issue faced by so many U.S. expatriates today.

There is a considerable participation and interest on the part of expatriates worldwide. We are sharing the insightful questions that have already been sent to us to ask the speakers. The presentation and the questions provide an extraordinary educational opportunity for everyone joining this free live stream event via YouTube.

REGISTER AND WE WILL KEEP YOU INFORMED

Here are the questions being asked our speakers.

The General Accounting Office (GAO) recently issued a report citing numerous problems directly linked to citizenship-based taxation and FATCA affecting expats while overseas. One of the issues raised was the ability of Americans to hold jobs. Does it serve the national interest where Americans cannot compete globally for jobs?

Many of the problems faced by nonresident US citizens arise from the incompatibility of US tax rules with the tax rules of the country where they actually live. Furthermore, dual citizenship is now much more common than it was in the 1860s (or 1960s).

If citizenship is a gap filler to assign domicile where none is otherwise assigned, shouldn’t citizens who are actually domiciled in another country be treated as tax resident only in that country? Shouldn’t the residence tiebreaker clauses in the treaty be available to citizens who have emigrated and/or who are dual citizens?

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Gaining citizenship in another country can take many years, sometimes even decades and sometimes it is not possible for someone who was not born in that country to become a citizen. Until such a time that someone is able to gain citizenship in their resident country the non-citizen generally needs a passport from their home country and a visa.

With this in mind, how can a US citizen living abroad retaining their US citizenship be used to justify taxing them on their non-US source income?

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With the US charging the highest citizenship renunciation fee in the world, giving up US citizenship for many US citizens abroad is out of reach. Most US citizens abroad are working and middle class living in countries with taxes higher than the US and current laws means many are trapped. They can’t afford the compliance fees to file their US taxes saying they owe no US tax yet can’t afford to renounce their US citizenship (if they are even able to get a second citizenship).

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Why was FATCA modification not included in recent efforts to move away from citizenship-based taxation?

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Considering that 242 out of 244 existing worldwide tax jurisdictions use residence-based taxation as a standard for the taxation of individuals and do not tax their diaspora, what justifies the US doing so?

In particular, what exceptional rights, advantages and benefits does the US diaspora receive from the US that are objectively definable and measurable that diasporas from other comparable countries, in means and will, do not receive from their respective countries of origin?

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Now that most other developed countries have adopted the CRS (FATCA-lite), doesn’t this change the debate from “Isn’t America bad” to “Should governments in general be allowed to monitor”?

How do you propose to administer this tax on people, some of whom never step foot in this country?

While they are citizens of the US, they often have not been in the country for years, and may not be for years to come. Other nation’s diaspora’s have dedicated representation in government. What is the process for USG to enact similar legislation?

(The US House of Representatives has one voting member for every 747,000 or so Americans. If US expat population is estimated to be 9M they should be entitled to 12 members. Currently having zero members dedicated to their unique situation this is clearly a case of taxation without representation.)

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What are the consequences of tax and FBAR non-compliance for an Accidental American (i.e. dual citizen living outside the US) with no US assets or income?

Does the IRS in fact make any attempt to contact or pursue non-compliant, non-filing non-residents, even those who have been identified by FATCA reporting?

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Is it possible to renounce US citizenship without coming into any form of US tax compliance, and if so, what are the potential consequences of doing so?

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Is it ethical for tax advisors to take on non-resident US person clients without informing them of the answers to the three questions listed above?

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Why should Americans living permanently abroad have any loyalty, promote or conduct business dealings, which all economically benefit the US for $0 costs, when the US consistently in return makes their lives more difficult and burdened?

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How is it fair that the US punitively taxes foreign retirement funds (most are classified as PFICs) when that is the only retirement vehicle available to some?

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How is the Net investment tax – a tax that unilaterally abrogates most tax treaties the US is part of, morally justified?

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It is fair or morally right that the minimum charge for that exit is $2,350 but for most it involves thousands of dollars to become ‘compliant” on top of that $2,350 just to exit a system that has never been part of their life?

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How is it fair to advocate for taxation without representation which is exactly what CBT is and does?

Recently I tried to apply for an investment account at HSBC in the country I live outside the US. They outright rejected me because I am an American passport holder due to FATCA; (and they stated this fact in writing) they don’t want to deal with Americans at all, so could you tell us how Americans living overseas are supposed to invest for their retirement when every year there are more and more regulations stacked against us?

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An additional question is, when banks in countries where we reside discriminate against Americans in general, what rights do we have to fight back?

It seems we have none, even based on local laws there seem to be no protections when FIs decide they don’t want a specific client.

What are future expats going to do when they can’t even open a bank account in the country they wish to live and work in?

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How can FATCA be moral when it is forced on a person that never lived or worked in the USA?

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What is the status of the Holding legislation, and what can we do to support this effort?

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Why did the U.N. condemn Eritrea’s tax policy, and are there other nations that the U.N. should condemn for similar reasons?

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Article 4, Section 2 of the Constitution states “The citizens of each state shall be entitled to all privileges and immunities of citizens in the several states.’ As the GAO recently reported, Americans abroad are not enjoying the same privileges as those in the states. Why does Congress encourage such blatant discriminatory practices?

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Does the IRS publish audit statistics for people who renounce citizenship or are they included in a broader or different category or categories of taxpayers?

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Why did the U.N. condemn Eritrea’s tax policy, and are there other nations that the U.N. should condemn for similar reasons?

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What is the status of the Holding legislation, and what can we do to support this effort?

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Question for Prof Zelinsky: The General Accounting Office (GAO) recently issued a report citing numerous problems directly linked to citizenship-based taxation and FATCA affecting expats while overseas. One of the issues raised was the ability of Americans to hold jobs. Does it serve the national interest where Americans cannot compete globally for jobs?

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Please consider the position of these people. Although they are American residents, they pay no US income tax. They pay no US income tax because they are not US citizens. If the US based it’s income tax obligations on residency like most other countries, this avoidance couldn’t happen.

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Have a question on Citizenship Worldwide Taxation? This event’s for you to get the answers you need.

 

TaxConnections Admin

TaxConnections Admin

TaxConnections is where you will find leading tax experts and resources worldwide. Please join us at: https://www.taxconnections.com/membership/sign_up

3 thoughts on “Citizenship Taxation Online Event: View Questions Below And Watch TaxConnections Live Stream Event On Friday, May 17th 2019

  1. Avatar Sun Tzu says:

    I cut a check every year to the US Treasury on income I earn abroad. It almost always amounts to thousands of dollars. Stateside residents are not confronted with this double taxation. I have not lived in the US since 2004. Who in their right mind thinks double taxation is fair?

  2. Avatar Sun Tzu says:

    Taxes do not pay for spending as Congress marks up the spending budget every year. They spend before a cent comes in. Since the US has a sovereign currency taxes for revenue is not in the national interest. US taxpayers do not fund anything. National governments with their own fiat currency are independent to spend money on anything they want — healthcare, infrastructure, education, etc., Does professor Zelinsky believe tax policy should be used to keep inflation in check and to fight runaway inequality in order to reduce the power of the ultra rich?

  3. Avatar Gary says:

    Do people in Congress and IRS have any comprehension of the time and money required to fill out such maze of complicated forms that would not be required of a US resident? For example, one-month of work to fill out Form 5471 for a tiny business that does not generate more than $50K per year is insane.

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