PREP Podcaster - ”Success Favours The PREPared Mind”

For Good And Evil: The Teaching Of Charles Adams Lesson 19

April 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

In this episode we continue the teaching of Charles Adams - Lesson 19:

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19. "The income tax is a bastardized form of wealth taxation, because the more a taxpayer possesses, the easier it is to avoid taxable income. A person's wealth and ability to pay do not necessarily bear any relation to taxable income."

For Good And Evil: The Teaching Of Charles Adams Lesson 18

April 18, 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

In this episode we continue the teaching of Charles Adams - Lesson 18:

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18. "Great wealth, as if by magic, disappears when governments adopt taxation to "soak the rich". The rich have always had the means to escape heavy taxation."

Rethinking Taxation: Continuing the The ”Fair Tax” Discussion With Jim Bennett and Steve Hayes

April 13, 2022 - Participants Include:

Jim Bennett- Fair Tax

Steven Hayes Fair Tax

Joe Howard - @EndCBTNow

John Richardson - @ExpatriationLaw

 

On March 27, 2022 I hosted Jim Bennett of "Fair Tax" and learned about the "Fair Tax Proposal". Today, Jim Bennet returned as a guest and was joined by Steve Hayes and Joe Howard.

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

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!

 

 

 

Biden Green Book Proposes Income Taxation Of Gifts And Bequests In Addition To Existing Estate and Gift Tax Regime

April 12, 2022 - Participants Include:

Virginia La Torre Jeker - @VLJeker

John Richardson - @ExpatriationLaw

Note: This podcast is based on a blog post published today here.

 

The Biden Administration recently released its Green Book of tax proposals. Although not likely to become law soon, the Green Book often provides advance notice of major changes in the US tax system. On page 31, the administration proposes to completely change how gifts are taxed. This change is introduced with the title:

"Treat transfers of appreciated property by gift or on death as realization events"

 

The basic idea is to follow Canada and Australia and treat gifts/bequests as "deemed sales" made at the time of the gift. The gift would take place at fair market value. In other words, an ordinary gift might generate a taxable capital gain.

In this podcast Virginia and I discuss:

 

- how this creates a  new and additional tax on gifts and bequests

- how the new tax would work

- how this might interact with the existing Estate and Gift tax regime

- why this might be a particular problem for Americans abroad

- why Americans abroad considering making gifts might consider making those gifts sooner rather than later.

 

 

 

 

UK Non-dom Status: An Island Of Territorial Taxation In An Ocean Of Worldwide Taxation

April 11, 2022 - Participants Include:

Jimmy Sexton, Esquire Group - @JimmySextonLLM

John Richardson - @ExpatriationLaw

The recent public disclosure that Rushi Sunack's wife Akshata Murthy  has elected UK "non-dom" status has drawn attention to UK "non-dom" status as a tax planning opportunity.

This is the second podcast where I have explored the entitlement to and workings of non-dom status. Interestingly the claim of entitlement to "non-dom" status appears to be based on the fact that she is NOT a British citizen but a citizen of India. The public outrage seems to be rooted in the observation that "citizenship" is neither relevant not determinative of either citizenship or domicile. If citizenship is not relevant for the purposes of taxation, then one wonders why the United States continues it's citizenship tax regime.

In this discussion, Jimmy and I explore the "inner workings" of the "non-dom" system. We discuss this from both a tax and immigration perspective.

In addition we explore their status as Green Card holders and how this may or may not interact with the claim of UK "non-dom" status.

 

 

 

 

 

 

 

 

Rishi Sunak’s wife Akshata Murty claim of UK non-dom status shines light on US citizenship tax

April 9, 2022 - Participants Include:

Diane Gelon - Diane@DianeGelon.com

John Richardson - @ExpatriationLaw

An earlier podcast with Diane Gelon is here.

In the 21st Century The Most Interesting Thing About A Person Is His Tax Residency!

The recent story of the Uk Chancellor Of The Exchequer Rishi Sunak and his wife Akshata Murty are evidence of this. The last week has featured story after story describing  how Ms. Murty was legally able to elect UK "non-dom status" to avoid paying UK tax on certain income sourced outside the UK. Apparently her claim of entitlement to her non-dom status has been based on the fact that she is a citizen of India and not a British citizen (and that she eventually plans to return to India). Predictably this has led to outrage - described here - from the general public.

The difficulties were compounded by the revelation that both Rishi Sunak and Askshata Murty are reported to have been US tax residents because they had Green Cards. Although it is not clear when the Green Cards were abandoned, it appears that Rishi Sunak held a Green Card when and after his UK political career began.

I have attempted to identify and describe a number of the issues in the following twitter thread:

https://threadreaderapp.com/thread/1512035483919998981.html

In this podcast I am again joined by UK based US lawyer Diane Gelon. In this episode we discuss:

- how the non-dom regime works and how it can benefit people (include US citizens) who wish to immigrate to the UK

- how and where Ms. Murty's non UK income might be taxed under the rules of international tax

- the effect of having the US Green Card and why that means that Mr. Sunak and Ms. Murty were also US tax residents (although apparently they used a tax treaty tie breaker to be treated as nonresidents from a US tax perspective)

- why the debate over Ms. Murty's non-dom status is really a public referendum on US citizenship taxation.

In the 21st Century the most interesting thing about a person is his/her tax residency, actual residence, citizenship and domicile!

 

 

 

 

The Life And Times Of Andrew Grossman: US Citizenship - A ”Search For Proof” or A ”Search For Truth”?

March 29, 2022 - Participants include:

Andrew Grossman - @AndyGr

John Richardson - @Expatriationlaw

 

For me, the opportunity to speak with Andrew Grossman is a great privilege. Mr. Grossman had a long career in the U.S. Foreign Service having served all around the world. In 1979, he left Tehran approximately 24 hours before the US Embassy was occupied.. In 1985 he dealt with the American citizens who were "caught" up in the TWA hijacking.

Professionally, Mr. Grossman is a superb lawyer with a speciality in citizenship law and how US citizenship law intersects with taxation internationally.

In this podcast we revisit some of my previous discussions with Andrew (see below). He is a prolific researcher in the areas (and intersection) of US citizenship taxation, FATCA and FBAR. Much of his research is consolidated in: "Update: FATCA: Citizenship-Based Taxation, Foreign Asset Reporting Requirements and American Citizens Abroad."

I have previously interviewed Mr. Grossman twice in Montreal:

 

Interview with Andrew Grossman - March 16, 2014 - Montreal, Canada

Catching Up With Andrew Grossman - December 8, 2016 - Montreal, Canada

 

I had the privilege of participating with him in a panel discussion in London here ...

With Solomon Yue, David Treitel and Andrew Grossman - October 8, 2018

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Look for "Part 2" to this podcast in the next few weeks ...

 

 

 

 

Citizenship By Investment: Proud Of Its Past, But How Confident Of Its Future?

March 22, 2022 - Participants Include:

Stephane Tajick - GlobalRCG.com

John Richardson - @Expatriationlaw

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 ...

To Renounce Or Not To Renounce, That Is The Question - How To Make The Renunciation Decision

March 20, 2022 - Participants Include:

 

Karen Alpert - @FixTheTaxTreaty

Keith Redmond - @Keith__Redmond

John Richardson - @Expatriationlaw

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For many people renunciation is a very difficult decision. Citizenship is a part of one's identity. Therefore, the renunciation decision includes many different factors. Some factors (tax, finance and immigration considerations) are objective. Other factors (identity, future plans and impact on family are more subjective.

In this podcast we discuss how these issues may interact and how to be satisfied that you have made an appropriate and defensible decision.

Those interested in a more technical and tax focused discussion of renunciation may find this recent interview/discussion - Renouncing US Citizenship - between John Richardson and Peter Palsen to be of interest.

 

 

 

 

 

How The ”Fair Tax” Would End Tax Residency, Worldwide Income And Taxation Of Americans Abroad

March 17, 2022 - Participants Include:

Jim Bennett - Fair Tax

John Richardson - @Expatriationlaw

 

Albert Einstein famously remarked that:

 

"The hardest thing to understand in the world is the income tax."

 

The income tax may also be the most unfair tax.

 

Fair Tax is a leader in educating and advocating for a "Fair Tax" which imposes taxation on only consumption.

This podcast features a discussion with Jim Bennet who is one of the most focussed and prominent advocates for the "Fair Tax" in the world.

Interestingly, the enactment of the "Fair Tax" would have the unintended consequence of ending the taxation of Americans abroad.

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The concept of the income tax coupled with worldwide taxation means that "tax residents" of a country are subject to taxation on their worldwide income. This leads to enormous complexity, compliance costs, uncertainty, anxiety and unfairness.

Many countries (Canada and the United States) have both an income tax and a consumption based tax. Some countries have only a consumption tax (example Bahamas).

Because of the unfairness, discriminatory nature, complexity and cost of administering an income tax system, there is a movement toward moving toward ONLY a consumption tax system.

Nobody explains this better than Jim Bennett. I thank him for being my guest today.

Learn more about the "Fair Tax" here.