PREP Podcaster - ”Success Favours The PREPared Mind”

Yes, France Has Considered Adopting Citizenship Taxation - A Discussion Of Its Report

August 4, 2022 - Participants Include:

 

Ryan Herche - US/France dual citizen in living in Texas (rherche22@gmail.com)

John Richardson - @Expatriationlaw

 

Background:

 

On September 17, 2019 the French Legislature issued a report about its "fact finding mission" relating to the "Universal Tax" AKA citizenship taxation. I recommend the report to all.

https://www.assemblee-nationale.fr/dyn/opendata/RINFANR5L15B2246.html#_Toc256000003

I thank Ryan Herche for forwarding the report to me and agreeing to participate in this podcast. The report  is a good discussion of:

A. The concern that French tax residents may be moving from France to lower their tax bills

B. Various ways to combat this "freedom of movement"

C. A consideration of whether U.S. citizenship based taxation is an appropriate way to keep people from severing tax residency with France.

Again, I urge you to read the report. If anyone wants to connect directly with Mr. Herche you are free to email him here: rherche22@gmail.com

 

 

For Good And Evil: The Teaching Of Charles Adams Lesson 23

July 25, 2022 - Participants include:

 

John Richardson - @Expatriationlaw

Jimmy Sexton - @JimmySextonLLM

 

Continuing our podcast series:

For Good And Evil Podcast 1 - October 25, 2021

For Good And Evil Podcast 2 - November 1, 2021

For Good And Evil Podcast 3 - November 8, 2021

For Good And Evil Podcast 4 - November 15, 2021

For Good And Evil Podcast 5 - November 22, 2021

For Good And Evil Podcast 6 - November 29, 2021

For Good And Evil Podcast 7 - December 7, 2021

For Good And Evil Podcast 8 - January 10, 2022

For Good And Evil Podcast 9 - January 17, 2022

For Good And Evil Podcast 10 - January 24, 2002

For Good And Evil Podcast 11 - January 31, 2022

For Good And Evil Podcast 12 - February 7, 2022

For Good And Evil Podcast 13 - February 14, 2022

For Good And Evil Podcast 14 - March 7, 2022

For Good And Evil Podcast 15 - March 14, 2022

For Good And Evil Podcast 16 - March 20, 2022

For Good And Evil Podcast 17 - March 20, 2022

For Good And Evil Podcast 18 - April 18, 2022

For Good And Evil Podcast 19 - April 25, 2022

For Good And Evil Podcast 20 - May 2, 2022

For Good And Evil Podcast 21 - June 27, 2022

For Good And Evil Podcast 22 - July 4, 2022 

In this episode we continue the teaching of Charles Adams - Lesson 23:

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23. "Historically, the conscience of the tax makers has often been like Swiss cheese - full of holes: when that happens the conscience of the taxpayers is also like Swiss cheese."

Dual Citizens At Birth: Is A Certificate Of Loss Of Nationality Really Required To Lose U.S. Citizenship For #FATCA Purposes?

July 17, 2022 - Participants Include:

 

Dr. Karen Alpert - @FixTheTaxTreaty

Dr. Laura Snyder - @TapInternation

John Richardson - @ExpatriationLaw

Background:

Those "Born In The USA"are (without a "Certificate Of Loss Of Nationality") presumed to be U.S. citizens. Once identified as "U.S. Citizens", the FATCA IGAs require U.S. citizens to provide a U.S. Social Security Number and sign a W9. The banks generally interpret their FATCA compliance obligations to mean they are required to secure this information - including the Social Security Number - from the U.S. citizen. There are many U.S. citizens who do NOT have U.S. Social Security Numbers. This combination of factors has resulted in many individuals (largely Accidental Americans with a U.S. birthplace) having problems maintaining access to financial accounts. From the perspective of the bank they are caught between:

1. Complying with their FATCA obligations which (pursuant to the FATCA IGAs) are now imposed under local law and NOT U.S. law; and

2. Whatever obligations they may have to their customers.

The legal framework between the bank and the customer has been defined by the FATCA IGAs.

 

When interpreting the legal framework it's important to understand that:

1. The IGAs require the banks to "hunt" for "suspected U.S. citizens". But who is defined as a "U.S. citizen"?

2. Section 1 ee) (page 7) of the FATCA IGAs specifies that whether someone is a U.S. citizen is determined by and only by U.S. law - specifically the Internal Revenue Code.

https://home.treasury.gov/system/files/131/FATCA-Agreement-Canada-2-5-2014.pdf

 

3. What it means to terminate U.S. citizenship under the Internal Revenue Code: Sec. 877(g)(4) of the Internal Revenue Code states that (at least for expatriating acts committed after June 16, 2008) that a Certificate Of Loss Of Nationality is required to cease to be a U.S. citizen for tax purposes. For those who were "Born In The USA" a "Certificate Of Loss Of Nationality" is required as proof of loss of U.S. citizenship.

https://www.law.cornell.edu/uscode/text/26/877A

 

4. Sec. 7701(a)(50) of the Internal Revenue Code states two things:

(A)  Generally Sec. 877A(g)(4) applies for the purposes of determining when and whether U.S. citizenship is terminated for tax purposes; and

(B) Treasury can by regulation create different rules for individuals who were dual citizens at birth. (In other words dual citizens from birth  may NOT be required to have a "Certificate Of Loss Of Nationality" to lose U.S. citizenship for tax purposes.)

https://www.law.cornell.edu/uscode/text/26/7701

 

In other words: For people born with dual citizenship, Treasury can make rules governing the termination of U.S. citizenship (for Internal Revenue Code purposes) that do NOT require a Certificate Of Loss Of Nationality and/or may or may not be tied to a specific expatriation date.

This appears to be very flexible. Treasury could do this in a number of ways. Possible example(s):

"Any individual who is a U.S. citizen with dual citizenship from birth who has  ___________________ will cease to be a U.S. tax resident _______."

Fill in the blanks.

 

 

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Full text of the statute:

 

(50)Termination of United States citizenship

(A) In general

An individual shall not cease to be treated as a United States citizen before the date on which the individual’s citizenship is treated as relinquished under section 877A(g)(4).

(B)Dual citizens

Under regulations prescribed by the Secretary, subparagraph (A) shall not apply to an individual who became at birth a citizen of the United States and a citizen of another country.

https://www.law.cornell.edu/uscode/text/26/7701

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In this podcast we discuss the possible meaning of the "Dual Citizens" carveout from the general rule. Further analysis is available at:

http://citizenshipsolutions.ca/2021/06/29/a-simple-regulatory-fix-for-the-fatca-problems-of-dual-citizens-from-birth/

and here

https://threadreaderapp.com/thread/1548658858859560960.html

 

 

 

For Good And Evil: The Teaching Of Charles Adams Lesson12

February 7, 2022 - Participants Include:

 

John Richardson - @Expatriationlaw

Jimmy Sexton - @JimmySextonLLM

 

Continuing our podcast series:

For Good And Evil Podcast 1 - October 25, 2021

For Good And Evil Podcast 2 - November 1, 2021

For Good And Evil Podcast 3 - November 8, 2021

For Good And Evil Podcast 4 - November 15, 2021

For Good And Evil Podcast 5 - November 22, 2021

For Good And Evil Podcast 6 - November 29, 2021

For Good And Evil Podcast 7 - December 7, 2021

For Good And Evil Podcast 8 - January 10, 2022

For Good And Evil Podcast 9 - January 17, 2022

For Good And Evil Podcast 10 - January 24, 2002

For Good And Evil Podcast 11 - January 31, 2022

In this episode we continue the teaching of Charles Adams - Lesson 12:

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12. "Taxes have been, more often than not, the cause of revolution. People seldom rise up and revolt, if their tax burdens are reasonable."

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In 1978 The US Had A Law Promoting Fair And Equitable Treatment For Americans Abroad

July 14, 2022 - Participants Include:

Dr. Karen Alpert - @FixTheTaxTreaty

Dr. Laura Snyder - @TapInternation

John Richardson - @Expatriationlaw

__________________________________________________

Once upon a time, back in the last century, the US passed a law which stated:

 

Some Context: America and Americans Abroad in the late 1970s:

In 1978 Congress enacted a law calling for the Equitable Treatment By United States Of  Its Citizens Living Abroad

EQUITABLE TREATMENT BY UNITED STATES OF ITS CITIZENS LIVING ABROAD

Pub. L. 95-426, title VI, Sec. 611, Oct. 7, 1978, 92 Stat. 989, as amended by Pub. L. 96-60, title IV, Sec. 407, Aug. 15, 1979, 93Stat. 405; Pub. L. 97-241, title V, Sec. 505(a)(2), (b)(1), Aug.24, 1982, 96 Stat. 299, provided that:

“The Congress finds that –

“(1) United States citizens living abroad should be provided fair and equitable treatment by the United States Government with regard to taxation, citizenship of progeny, veterans’ benefits, voting rights, Social Security benefits, and other obligations, rights, and benefits; and

“(2) United States statutes and regulations should be designed so as not to create competitive disadvantage for individual American citizens living abroad or working in international markets.”

 

To read and understand this history see:

https://threadreaderapp.com/thread/1546790694013976576.html

In 1982 Congress repealed that law on the grounds that it was an "obsolete provision".

The report to Congress may be read here:

https://babel.hathitrust.org/cgi/pt?id=pur1.32754074746458&view=1up&seq=112&skin=2021

 

 

 

How The U.S. Tax System Has Turned U.S. Citizenship Into A Global Disability

July 14, 2022 - Participants include:

Greg Swanson - @IntlOwl

John Richardson - @Expatriationlaw

Great discussion with Greg Swanson who is a U.S. citizen living in Switzerland.

Greg asks an important question for the 21st Century:

Why should a U.S. citizen living outside the United States, not have the same opportunities in life as his neighbour - a German citizen - living outside of Germany?

The U.S. extraterritorial tax regime has turned U.S. citizenship into a disability.

Greg has written some great articles which are available on Medium.

 

 

 

Citizenship And Residency By Investment: Understanding The US Market

March 22, 2022 - Participants Include:

Stephane Tajick - GlobalRCG.com

John Richardson - @Expatriationlaw

This is the second of two podcasts with Stephane Tajick which took place on March 22, 2022. The first podcast discussed the state of the Investment Migration industry in general.

This second podcast focuses on the U.S. market.

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In General ...

More and more people are understanding the importance of "global mobility options". For some people this is a second residence. For some it is a second citizenship. The last decade has witnessed the growth of "Citizenship By Investment".

"Citizenship By Investment" programs allow people to acquire a second citizenship in return for some sort of cash payment. The growth of the industry has generated  opposition to these programs. Citizenship by investment should not be confused with "tax residency". Nevertheless, various governments have taken the position that "citizenship by investment" programs should end. 

The recent Russia/Ukraine conflict has generated sanctions against both Russia and many Russian citizens. Some of the sanctions against Russian citizens have been in the form of denying Russian citizens access to "citizenship by investment". 

My guest, Stephane Tajick, recently wrote an article in the IMI Daily questioning the continued existence of "citizenship by investment" programs. He asks:

"Are We Witnessing The Extinction Of Citizenship By Investment?"

Stephane joins me to discuss this question ...

 

For Good And Evil: The Teaching Of Charles Adams Lesson 21

June 27, 2022 -  Participants include:

 

John Richardson - @Expatriationlaw

Jimmy Sexton - @JimmySextonLLM

 

Continuing our podcast series:

For Good And Evil Podcast 1 - October 25, 2021

For Good And Evil Podcast 2 - November 1, 2021

For Good And Evil Podcast 3 - November 8, 2021

For Good And Evil Podcast 4 - November 15, 2021

For Good And Evil Podcast 5 - November 22, 2021

For Good And Evil Podcast 6 - November 29, 2021

For Good And Evil Podcast 7 - December 7, 2021

For Good And Evil Podcast 8 - January 10, 2022

For Good And Evil Podcast 9 - January 17, 2022

For Good And Evil Podcast 10 - January 24, 2002

For Good And Evil Podcast 11 - January 31, 2022

For Good And Evil Podcast 12 - February 7, 2022

For Good And Evil Podcast 13 - February 14, 2022

For Good And Evil Podcast 14 - March 7, 2022

For Good And Evil Podcast 15 - March 14, 2022

For Good And Evil Podcast 16 - March 20, 2022

For Good And Evil Podcast 17 - March 20, 2022

For Good And Evil Podcast 18 - April 18, 2022

For Good And Evil Podcast 19 - April 25, 2022

For Good And Evil Podcast 20 - May 2, 2022

 

In this episode we continue the teaching of Charles Adams - Lesson 21:

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21. "Progressive tax rates have no principles or standards and have quickly evolved into odious arbitrariness when directed at minorities rich in money but poor in votes."

For Good And Evil: The Teaching Of Charles Adams Lesson 22 - Fourth of July Edition

July 4, 2022 - Independence Day Edition - Participants include:

 

John Richardson - @Expatriationlaw

Jimmy Sexton - @JimmySextonLLM

The great American author Mark Twain was famous for many of his quotes. But, one of his most famous is:

"Patriotism is supporting your country all the time, and your government when it deserves it."

A perfect thought for a 4th of July podcast ...

 

Continuing our podcast series:

For Good And Evil Podcast 1 - October 25, 2021

For Good And Evil Podcast 2 - November 1, 2021

For Good And Evil Podcast 3 - November 8, 2021

For Good And Evil Podcast 4 - November 15, 2021

For Good And Evil Podcast 5 - November 22, 2021

For Good And Evil Podcast 6 - November 29, 2021

For Good And Evil Podcast 7 - December 7, 2021

For Good And Evil Podcast 8 - January 10, 2022

For Good And Evil Podcast 9 - January 17, 2022

For Good And Evil Podcast 10 - January 24, 2002

For Good And Evil Podcast 11 - January 31, 2022

For Good And Evil Podcast 12 - February 7, 2022

For Good And Evil Podcast 13 - February 14, 2022

For Good And Evil Podcast 14 - March 7, 2022

For Good And Evil Podcast 15 - March 14, 2022

For Good And Evil Podcast 16 - March 20, 2022

For Good And Evil Podcast 17 - March 20, 2022

For Good And Evil Podcast 18 - April 18, 2022

For Good And Evil Podcast 19 - April 25, 2022

For Good And Evil Podcast 20 - May 2, 2022

For Good And Evil Podcast 21 - June 27, 2022

In this episode we continue the teaching of Charles Adams - Lesson 22:

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22. "Patriotism is soluble in oppressive taxation, oppression in the rates of tax or in the manner in which taxes are assessed or collected."

Steve Hayes of FairTax.org: When It Comes To Taxation ”Simplicity Is Virtue” (And Moral)

June 4, 2022 - Participants Include:

 

Steven Hayes Fair Tax

Joe Howard - @EndCBTNow

John Richardson - @ExpatriationLaw

 

"In a sad voice, Jefferson says: When we wrote the Constitution, all of us knew history. We knew that great civilizations begin to decline when they introduced direct taxation. In the Constitution, we restricted direct taxation because we knew it would yield the same result experienced by other nations  using direct taxation-erosion of individual rights and the oppression of the minority by the majority because it could use its political power to use the government to steal from the minority."

From - "WOULD THOMAS JEFFERSON THINK WE ARE FREE?" - By Steven L. Hayes and Charles Adams

Notice that suggested connection between individual rights and tax rights!

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Continuing the discussion with Steve Hayes ...

On March 27, 2022 I hosted Jim Bennet of "Fair Tax" and learned about the "Fair Tax Proposal".  On April 13, 2022, Jim Bennet returned as a guest and was joined by Steve Hayes and Joe Howard. The April 13, 2022 podcast can be heard here.

Mr. Hayes and Mr. Bennet are the primary movers and creators of H.R. 25 "The Fair Tax Act of 2021" which can be viewed here.

So, what is the "Fair Tax" movement?

At the risk of oversimplification, H.R. 25 proposes to replace Subtitle A (Income Tax), Subtitle B (Estate and Gift Tax) and Subtitle C (Employment Tax) of Title 26 (The Internal Revenue Code)  with one comprehensive consumption tax.

If enacted the "Fair Tax" would create a U.S. tax system that:

-  was a territorial (tax imposed on activity in the US only) based on a consumption tax (tax imposed on consumption and not income)

- allowed certain low income people to apply for tax abatements

- made the U.S. a more attractive location for foreign investment and business activities

- ended the tax filing requirement for individual taxpayers (and therefore ended the "Regulatory Oppression" experienced by individuals in general and Americans abroad in particular)

- ending the relevance of "tax residency" because taxation would be based on spending only

- solved the problems of citizenship tax as experienced by US emigrants and accidental Americans

The adoption of the "Fair Tax" would result in a major change in US society. As the great tax historian Charles W. Adams taught:

As goes taxation, so goes civilization!

I strongly suggest that Americans abroad support the "Fair Tax" movement!