21.1K
Downloads
295
Episodes
Discussion about current events, culture, independent candidates, business, education, travel, death and taxes, global mobility, citizenship and residence by investment options, Americans abroad, FATCA, CRS, U.S. citizenship renunciation, Green Card abandonment, citizenship taxation, PFIC, GILTI, foreign trusts, I-407 and more ...
Episodes
Tuesday Mar 14, 2023
Tuesday Mar 14, 2023
Congressman Higgins Asks United States Trade Representative to Request Consultations Related to Canada’s Underused Housing Tax
Congressman Brian Higgins (NY-26) is asking United States Trade Representative Katherine Tai to open formal consultations with the Government of Canada to explore if the Underused Housing Tax is inconsistent with the United States-Mexico-Canada Agreement (USMCA).
In a letter to Ambassador Tai, Rep. Higgins writes, “The United States and Canada have a longstanding, cooperative, and mutually beneficial relationship. Western New York and Southern Ontario exemplify this unique bond. The UHT’s impact on Americans who own property in Canada, however, threatens our binational community and appears to be inconsistent with the USMCA.”
One of the principles of the USMCA is the requirement that all parties not discriminate against each other or provide preferential treatment solely to domestic companies or citizens, including with respect to internal taxation. Canada’s Underused Housing Tax does not apply equally to Canadian and U.S. citizens and therefore may violate these principles. The USMCA stipulates parties can request consultations with another party when trade agreement disputes arise.
Canada recently imposed a 1% tax on “vacant or underused housing” owned by non-resident, non-Canadians. The intent was to target foreign investment speculation negatively impacting affordable housing in Canada, but it is impacting good-faith, longtime cottage owners who have maintained and enjoyed living among their Canadian neighbors for years.
Higgins began sounding the alarm about the Underused Housing Tax since it was first proposed in the Government of Canada’s Budget 2021. Most recently, Higgins asked the U.S. Secretary of State to object to the Underused Housing Tax in conversations with the Government of Canada.
Outreach from frustrated U.S. residents has increased in recent weeks as the April 30th tax form deadline approaches in Canada. Congressman Brian Higgins has heard from hundreds of U.S. residents negatively impacted by the Underused Housing Tax, including over 320 property owners who completed an online survey.
Congressman Higgins is a member of the House of Representatives Ways and Means Subcommittee on Trade and serves as Co-Chair of the Northern Border Caucus and the Canada – U.S. Interparliamentary Group. His Western New York district, which includes the Cities of Niagara Falls and Buffalo, borders southern Ontario.
Saturday Mar 11, 2023
Saturday Mar 11, 2023
March 4, 2023 - Participants Include:
Amy Purcell - @Amy_From_Sydney
John Richardson - @Expatriationlaw
This fourth podcast with @Amy_From_Sydney continues with our three discussions from 2022. If you missed either of the first two discussions with her, you can find them here:
First - February 6, 2022:
A fascinating discussion with Amy - born to a US citizen mother in Australia - who has lived in Sydney Australia her whole life. She has visited the United States but has never had any economic connection to the United States. In other words, she is an "Accidental American".
In March of 2021 she received a FATCA inquiry from her Australian bank. In this podcast she describes her "OMG Moment". She generously describes her emotions, her response (getting a Social Security Number) and filing taxes through the streamlined process.
Second - February 22, 2022:
Amy From Sydney Take 2: To Vote Or Not To Vote - That Is The Question, Whether Tis Better To
A fascinating discussion with Amy - born to a US citizen mother in Australia - who has lived in Sydney Australia her whole life. She has visited the United States but has never had any economic connection to the United States. In other words, she is an "Accidental American".
In her first podcast Amy told her story of becoming acquainted with the "Twin Horrors Of FATCA and Taxation Based Citizenship". In this, her second podcast, we continue the discussion with an emphasis on the importance of Americans abroad:
- becoming vocal about the injustices of FATCA and US extraterritorial taxation
- using the right to vote strategically and as an opportunity
- contributing to the struggle by doing what they can!
After all, the United States is actually imposing direct taxation on income earned in Australia by an Australian resident. It's no wonder that Amy describes this as hard to believe and "spacey".
Third - May 24, 2022 - The American Expat Finance News Journal
___________________________________________________________
Fourth - March 4, 2023
In this 2023 update, Amy provides updates which include:
- the continuing difficulty of advocacy for Americans abroad
- the responsibility of all Americans abroad to participate in the opposition to U.S. extra-territorial overreach
- the continuing conflict between the "Get Out The Vote" initiatives and the interests of @USVotersAbroad
- the importance of fund raising
- why it's important for every country to have at least one "Amy From Sydney"!
- How to become the next "Amy From Sydney!"
Saturday Mar 11, 2023
Saturday Mar 11, 2023
March 11, 2023 - Participants include:
Gregory Smith - @BlogNDog
John Richardson - @Expatriationlaw
_________________________________________________
Greg Smith has lived outside the United States for most of his life. He has lived in six U.S. states and 19 different countries. He is presently in Prague where (along with other things) he runs a Hostel for visitors to Prague.
He was previously on the ACA Board.
In this podcast, Greg a wide range of thoughts and perceptions about his 25+ years of living under the tyranny of Mr. FBAR and the U.S. extra-territorial tax, reporting and penalty regime.
This podcast was arranged because of the following Twitter exchange on March 11/23 about the Bittner case:
@Expatriationlaw
Friday Mar 10, 2023
Friday Mar 10, 2023
March 10, 2023 - Participants include:
Keith Redmond - @Keith__Redmond
John Richardson - @Expatriationlaw
________________________________________________
The issue is NOT who should get your vote, but rather how to make the best use of your right to vote. At present ONLY the Democrats have a presence outside the United States and are asking for your vote.
Your right to vote can be used in a variety of different ways which include:
- Voting for either the Republicans or Democrats
- Vote for a small party or third party candidate
- Not vote and ignore the process
- Not vote and explain to the established Parties that you refuse to "Vote For The Party", because (as an American Abroad) the Party won't vote for you!
Friday Mar 10, 2023
Friday Mar 10, 2023
March 10, 2023 - Participants include:
Keith Redmond - @Keith__Redmond
John Richardson - @Expatriationlaw
__________________________________________-
For Americans abroad having their "Oh My God Moment" the question is NOT the execution of the plan. The question is what should the plan be!
It's important to RESPOND and NOT to REACT!
Of perhaps view it this way:
‘LET US NOT LOOK BACK IN ANGER, NOR FORWARD IN FEAR, BUT AROUND IN AWARENESS.’ (JAMES THURBER)
Friday Mar 03, 2023
Friday Mar 03, 2023
March 3, 2023 - Participants include:
Keith Redmond - @Keith__Redmond
John Richardson - @Expatriationlaw
In this podcast we discuss:
The United States defines "tax residence" in terms of the "circumstances of birth" rather than the "circumstances of life: and
Why it's important to get the support of other countries in ending the U.S. extra-territorial tax regime!
This discussion is based largely on the following three posts:
https://citizenshipsolutions.ca/2023/01/08/toward-a-definition-of-us-citizenship-taxation/
Wednesday Mar 01, 2023
Wednesday Mar 01, 2023
March 1, 2023 - Participants include:
Virginia La Torre Jeker - @VLJeker
John Richardson - @Expatriationlaw
_______________________________________
It's a clear win for Mr. Bittner and a warm congratulations to him!!
What the Supreme Court decision means on a longer term basis is less clear. Virginia and discuss the possibilities in this "Morning After" podcast.
Thursday Feb 23, 2023
Thursday Feb 23, 2023
February 23, 2023 - Participants include:
Virginia La Torre Jeker - @VLJeker
John Richardson - @Expatriationlaw
_________________________________________
The Significance Of The Aroeste FBAR case:
This decision from the District Court provides support for the principle that individuals who are nonresidents under the terms of a U.S. tax treaty may NOT (in certain circumstances) be required to file an FBAR.
Factual background:
Mr. Aroeste was a Green Card holder who was assessed with approximately three million dollars in tax and information return penalties. The bulk of the three million was for the failure to file information returns (including Mr. FBAR).
One Of The Legal Issues:
On February 13, 2023 in the case of "Aroeste v. U.S., No. 22-cv-682-AJB-KSC", in the United States District Court for the Southern District Of California, the Hon. Karen Crawford addressed the following question:
1. How is Alberto Aroeste’s status under the United States – Mexico tax treaty germane to the issue of whether Mr. Aroeste was required to file the FBAR reports at issue in this case?
She concluded that:
"(5) Therefore, any person allowed to permanently reside in the United States by virtue of US immigration laws must file an FBAR unless that person is entitled to be treated as a resident of a foreign country under a tax treaty."
The complete chain of reasoning is as follows:
The upshot of this statutory and regulatory framework applicable to this action, in which tax treaties provide a potential escape hatch that excuses certain “United States persons” from filing FBARs, can be expressed as a 5-step process:
(1) Under 26 U.S.C. § 7701(b)(6), anyone allowed to permanently reside within the United States by virtue of US immigration laws is a “lawful permanent resident” for tax purposes unless an applicable tax treaty allows that person to be treated as a resident of a foreign country for tax purposes only;
(2) Under 26 U.S.C. § 7701(b)(1)(A)(i), any “lawful permanent resident” is a “resident alien”;
(3) Under 31 C.F.R. § 1010.350(b)(2), any “resident alien” is a “resident of the United States”;
(4) Under 31 C.F.R. § 1010.350(b), Any “resident of the United States” is a “United States person” required to file an FBAR;
(5) Therefore, any person allowed to permanently reside in the United States by virtue of US immigration laws must file an FBAR unless that person is entitled to be treated as a resident of a foreign country under a tax treaty
I will write a more extensive blog post about this in the next few days.
Saturday Feb 18, 2023
Saturday Feb 18, 2023
February 18, 2023 - Participants Include:
Tim Smyth - @Tpsmyth01
John Richardson - @Expatriationlaw
Suggesting A Joint Rally Of U.S. And Canadian Residents Who Oppose All Forms Of Citizenship Taxation
When - The Date of President Biden's visit to Canada
Where - Outside the Parliament Building
For More information stay tuned!
_______________________________________________________
What is Canada's Underused Citizenship-based Property Tax?
Canadian Government Summary Of Canada’s Underused Housing Tax Law:
https://www.canada.ca/en/services/taxes/excise-taxes-duties-and-levies/underused-housing-tax.html
The Text Of Canada’s Underused Housing Tax Law:
https://laws-lois.justice.gc.ca/eng/acts/U-0.5/FullText.html
The Actual Tax Return – Form UHT-2900 – Due April 30
uht-2900-22e
Thoughts On Canada's Citizenship-based Underused Property Tax
Interestingly Canada’s Underused Property Tax, by its express terms applies based on “citizenship” and/or “immigration status”. Specifically, it applies to people who are neither citizens nor permanent residents of Canada. In the same way that the United States imposes taxes on people based on and only on the status of being a U.S. citizen or permanent resident of the United States (Green Card holder), Canada’s Underused Vacant Property Tax is based on NOT being a citizen or permanent resident of Canada. Significantly, certain provincial human rights codes (presumptively) prohibit discrimination based on citizenship. The first case decided by the Supreme Court of Canada (Andrews) interpreting S.15 of Canada’s Charter of Rights struck down a British Columbia statute requiring Canadian citizenship to practise law in British Columbia. In 1974 – In Re Griffiths – the U.S. Supreme Court struck down a similar Connecticut provision requiring U.S. citizenship to be admitted to the bar in Connecticut. In the United States, classifications based on citizenship/alienage are “suspect classifications” and presumptively unconstitutional. Canada’s laws and judicial decisions are generally hostile to classifications based on citizenship.
Enter Congressman Brian Higgins - Objecting To Canada's Citizenship-based Property Tax
Congressman Higgins represents voters in Upstate New York. Apparently a number of his constituents own property in Canada. Interestingly, the Congressman has NOT voiced any objections to Toronto’s vacant home tax. His objections are aimed at Canada’s Underused Property Tax. He frames his objection in various ways. His objection appears to be based principally on the fact that the Canadian tax targets individuals who are neither Canadian citizens nor permanent residents of Canada. As reported by American Expat Finance, he began registering his objection to the Canadian tax at least as early as 2021. U.S. citizens subject to the tax are required to file the return and pay the tax (1% of the value of the property) by April 30, 2023. As a result, the Congressman’s objections have in recent days become more public and more urgent. On February 15, 2023 he issued a press release which included:
Congressman Says New Tax is Both Offensive & a Violation of Binational Agreements
Congressman Brian Higgins (NY-26) is calling on the Biden Administration to address Canada’s Underused Housing Tax in upcoming discussions with the Government of Canada. The new 1% tax on “vacant or underused housing” owned by non-resident, non-Canadians is hitting Americans, many of whom have contributed to Canada’s economy and owned cottages in Canada and for generations, especially hard.
In a letter to U.S. Secretary of State Antony Blinken, Rep. Higgins writes, “At a time when encouraging cross-border travel and economic activity should be prioritized as both countries recover from the COVID-19 pandemic, this is an unnecessary burden and bad faith action by the Government of Canada, which violates the United States-Mexico-Canada Agreement (USMCA) as well as longstanding tax treaties. In your upcoming conversations with the Government of Canada, I request that objecting to this tax is a high priority.”
Rep. Higgins has heard from over 200 U.S. residents upset about the new tax, including over 165 who completed an online survey and dozens more who called and wrote to his office. Of the survey respondents, over 80% live in Western New York, about 10% live in Florida and others live across the U.S. including the states of South Carolina, Ohio, Virginia, Georgia, Pennsylvania, California, and Colorado. The majority own property in Fort Erie, Crystal Beach, Port Colborne, and Ridgeway in the province of Ontario. Many have been property owners in Canada for decades, with 42% of respondents having property in Canada for between 20 and 49 years, and 28% having their Canadian property for over 50 years.
In addition to the cost associated with the tax, many have expressed to Congressman Higgins frustration with the lack of information, clarity, and notification of the tax by the Government of Canada. The tax forms are due in Canada April 30th, but owners must first file to receive a tax identifier number. Failure to pay the tax comes with a minimum penalty of $5,000.
Higgins has objected to the Underused Housing Tax since it was first proposed in the Government of Canada’s Budget 2021, voicing opposition with the United States Trade Representative, the U.S. Department of the Treasury, and Canada’s Ambassador to the United States.
President Biden has announced plans to visit Canada for meetings with Prime Minister Trudeau and their Administrations in March.
Congressman Higgins serves on the House of Representatives Ways and Means Committee, which oversees U.S. Tax policy, and the Ways and Means Subcommittee on Trade, which has oversight of trade agreements like the USMCA. Higgins’ Western New York district, which includes the cities of Buffalo and Niagara Falls, borders southern Ontario. Higgins is co-chair of the Canada-U.S. Interparliamentary Group and the Northern Border Caucus.
Tuesday Feb 07, 2023
Tuesday Feb 07, 2023
February 7, 2023 - Participants include:
Anthony Parent - @IRS_Medic
Keith Redmond - @Keith__Redmond
John Richardson - @Expatriationlaw
Americans Abroad exhibit a shocking apathy toward U.S. Citizenship Tax!
Although the primary focus of this discussion is the "apathy" that Americans Abroad exhibit when it comes to ending citizenship taxation, beginning at the 10:50 mark and ending at the 13:50 mark, I explain how:
The United States is clearly incentivizing Americans abroad to renounce U.S. citizenship!!