PREP Podcaster - ”Success Favours The PREPared Mind”

How Does Renunciation Affect Entitlement To US Social Security Payments?

October 27, 2021 - Participants Include:

 

Virginia La Torre Jeker - @VLJeker

John Richardson - @Expatriationlaw

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Many US citizens are entitled to US Social Security Benefits. They have spent a life of paying into the system.

Those considering renunciation of US citizenship sometimes have concerns about how NOT being a US citizen might impact their entitlement to US Security Benefits (to which they would otherwise be entitled).

In this episode Dubai based international tax lawyer Virginia La Torre Jeker and John Richardson discuss how renunciation of US citizenship impacts these issues.

The short answer is that:

For the vast majority of people, renunciation of US citizenship will have no impact on their continued entitlement to US Social Security. It will however have an impact on the way those payments are taxed. (Note that renunciation of US citizenship affects BOTH how Social Security is taxed under  the US Internal Revenue Code AND under applicable tax treaties.)

 

Further Resources:

1. US Gov - Your Payments While Outside The United States

2. US Social Security Information Site

3. More advanced questions and how long term residence abroad can impact US Social Security.

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Concerned about being barred from the United States after renouncing US citizenship?

 

Here is an earlier podcast with Virginia where we discuss the Reed Amendment and whether those renouncing US citizenship are really at risk of being barred from entering the United States. There is little evidence that renunciation of US citizenship (even if motivated by tax avoidance) will lead to being barred from entering the United States under the Reed Amendment.

 

 

 

 

For Good And For Evil: Podcast 1 - Introduction

October 25, 2021 - Participants Include:

 

John Richardson - @Expatriationlaw

 

Jimmy Sexton - @JimmySextonLLM

 

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For Good And For Evil - Podcast 1 - Introducing The Series

I am really excited to annouce a new podcast series called "For Good And For Evil". The series is based on the book by Charles W. Adams titled:

For Good And Evil: The Impact Of Taxes On The Course Of Civilization

This is a truly incredible book. Although (perhaps) not popular when it was published, Mr. Adam's observations were remarkably prescient. To put it simply much of the current focus on taxation can be understood through the discussion of history in this remarkable book.

The book describes history in terms of taxation. (Was the US Civil War really about slavery or was it about taxation?) After 36 chapters of explaining history in terms of taxation, we reach Chapter 37. In Chapter 37 - "Learning From The Past" - Mr. Adams list 27 lessons to be learned about taxation from the past (the first 36 chapters). These 27 lessons will be the basis for our series of podcasts. (We will of course link this to previous chapters.)

I (John Richardson) am pleased to be joined in this "trip through history" (as explained by taxation) by Jimmy Sexton, LL.M. (CEO of the Esquire Group). Jimmy and I have spent many hours discussing these principles. This podcast series will bring you into the discussion. We will of course invite other guests.

At present we are planning to do a podcast every Monday morning EST - Toronto, Canada time.

I am excited about this project and am sure that many of you will find it interesting. So, go out and buy the book. Follow this series. Send us your thoughts and questions on Twitter.

In order to prime yourself, here  is a link to a great video of an interview with the man himself - Charles W. Adams.

Enjoy!

 

 

 

Dr. Karen Alpert: Calling Australians To Tell Australia Gov How The US Tax Treaty Is Hurting you!

October 25, 2021 - Participants Include:

 

Dr. Karen Alpert - @FixTheTaxTreaty

 

John Richarsdon - @Expatriationlaw

 

As reported at American Expat Finance, the Government of Australia has solicited public comments about its tax treaties and tax treaty network. Dr. Karen Alpert, founder of the Fix The Tax Treaty site has prepared a submission to the Australian Government. You will find her submission here.

It is important that individuals impacted by this issue (US citizens living in Australia or Australian citizens living in the United States) take the time to comment on this issue!

The problems are summarized in Dr. Alpert's submission.  As you know, the problems include but are not limited to: the Australian Superannuation, sale of the principal residence, PFICs, the "saving clause", etc. Please take the time to make a submission which details how the current system has harmed you!

 

 

Note from Karen:

I would encourage all affected Australian citizens and residents to make their own submission. You can download our submission from our post at http://fixthetaxtreaty.org/2021/10/23/treasury-submission/ and attach it as an appendix to your own submission describing how the inadequate treaty affects you. Send a copy to your Member of Parliament. Submissions are due 31 October 2021 (AEDT). Unless the Australian Treasury hears from those who are affected, they will continue to ignore the inadequacies of the tax treaty.

The Significance Of The Pandora Papers: Is the wealth of the public the business of the public?

October 18, 2021 - Participants Include:

 

Jimmy Sexton of the Esquire Group - @JimmySextonLLM

John Richardson - @Expatriationlaw

Significantly the Pandora Papers revealed little tax evasion. The leak did reveal that many individuals (including the wealthy) have a desire to keep their personal affairs private. In many cases, the desire for privacy is NOT to hide assets from governments but rather to hide assets from the general public. (Some have argued that the focus is not on tax evasion but is preserving the integrity of the democratic process.)

In this podcast I am joined by Jimmy Sexton to discuss the the world of asset privacy. We make the distinction between hiding assets from governments and hiding assets from the your neighbours. Interestingly the United States (South Dakota and other states) have become world leaders in providing "privacy havens" for wealthy individuals.

We also discuss the possible implementation of wealth taxes and what they may mean and other aspects of living in a world where "the wealthy" (whatever that means) are increasingly under scrutiny.

There are two groups of people who will find this discussion interesting:

1. Those individuals who value privacy

2. Those individuals who do NOT value privacy.

Previous podcasts with Jimmy Sexton include:

 

https://prep.podbean.com/e/tax-haven-usa-why-the-usa-is-a-great-place-to-invest-for-nonresident-aliens-and-how-these-investments-might-be-structured/

https://prep.podbean.com/e/us-citizenship-renunciation-an-appointment-to-renounce-is-rare-opportunity-and-hard-to-find/

 

 

 

 

 

 

 

 

 

 

 

 

 

Professor Steven Dean Part 1: The Sociology Of International Tax - A History Of Privilege

October 21, 2021 - Participants Include:

 

Professor Steven Dean - @BrooklynTaxProf

John Richardson - @Expatriationlaw

 

On October 21, 2021 I participated in a discussion with Professor Steven Dean of Brooklyn Law School. The discussion has been divided into two podcasts. This is Podcast 1.

As a professor Steven Dean understands the technical aspects of tax. That said, he is one of the very few tax academics who is a thought leader in understanding the sociological forces that have and continue to shape  our current system of international taxation. Shockingly the international tax system is based on treaties that were entered into 100 years ago. As such those treaties reflect the values, assumptions and priorities of a world that no longer exists.

Steven Dean's writings draw attention to ways that the international tax system (reflecting the views and priorities of the privileged) impose and perpetuate hardship on the disadvantaged. Who could have imagined that poverty in some of the poorest countries of the world are exacerbated by the rules of international tax?

Our discussion on how taxation impacts countries and individuals includes the newsworthy Pillar 1, Pillar 2 and Professor Dorothy Brown's "The Whiteness Of Wealth".

His insights into the events that led to FATCA will be of particular interest to those Americans abroad who are fighting the injustices of FATCA and US citizenship-based taxation.

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What follows are links to some of his best and most interesting work. Each of these articles is referenced in the podcasts. I particularly recommend the "Ten Truths About Tax Havens" article below ...

 

Mainstream media for a mainstream audience

 

A Plea to President Biden to Stop Perpetuating Racist Tax Policy
https://www.thenation.com/article/economy/biden-tax-policy/

 

Can The Powerful Global Tax Organization Shed Its Racist Ways?

https://www.thenation.com/article/economy/digital-tax-racism/

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Academic Papers

 

Steven Dean: A Constitutional Moment In Cross Border Taxation
https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3900564

Steven Dean and Attiya Waris: The Ten Truths About Tax Havens
https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3822421

 

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Bonus:

 

How Racial Diversity Shaped US International Tax Policy*
https://www.forbes.com/sites/taxnotes/2020/07/27/how-racial-diversity-shaped-us-international-tax-policy/?sh=6100dcd4231c

*This is an interview with Robert Goulder of Tax Notes. The discussion sheds some light on the events leading to FATCA.

Updating Citizenship-Based Taxation - Regulation, Legislation or Both?

September  4, 2021 - Participants include:

John Richardson - @Expatriationlaw

 

Elliot Bramham - See bio below.

On September 3, 2021 Bloomberg published a fascinating article called "Updating Citizenship-Based Taxation". In describing the US extraterritorial tax regime, the author states:

 

"As of now, the current system effectively creates a new taxation regime for every jurisdiction in which the overseas citizen resides. Beyond mastering the tax code, agents are required to navigate the laws and financial products of multiple jurisdictions in addition to being versed in any bilateral taxation treaties and social security agreements in place."

 

This podcast is an interview with the author - Elliot Bramham. The podcast includes a discussion of the US extraterritorial tax regime and why it has driven the need for specialized financial planners who recognize and understand why US citizenship creates hurdles in financial and retirement planning. In addition, the article recognizes that the problem of citizenship-based taxation can be solved through either regulation or legislation ...

To whom much has been given (US citizenship), much is expected (US citizens)!

 

Bio:

Elliot Bramham is an international graduate in financial management and laws. Wanting to enable others to reach their full potential, he moved to the United Kingdom to begin a career in financial planning.

 

Linkedin:

https://www.linkedin.com/in/elliot-bramham/

 

 

 

 

"All Roads Lead To Renunciation" - An Accidental American discusses his renunciation journey

August 12, 2021 - Participants include:

 

John Richardson - @Expatriationlaw

 

Robert Nielsen - @Nielsen_Robert

 

https://twitter.com/nielsen_robert/status/1424157530788401162

 

 

 

 

 

Defining Residence based taxation: What it is and what it is not

July 19, 2021 - Participants Include:

 

Dr. Karen Alpert - @FixTheTaxTreaty

 

John Richardson - @Expatriationlaw

 

 

Part 1: Renouncing US Citizenship? Valuation of joint interests (including the family home) in the context of the 877A Exit Tax Rules

March 17, 2021 - Participants Include:

John Richardson - @Expatriationlaw

 

More and more people are taking the steps to renounce their US citizenship or to abandon their Green Cards. US citizens who renounce US citizenship and Green Card holders who are "long term" residents are potentially subject to the Exit Tax rules found in Internal Revenue Code 877A.

Those who expatriate with a net worth of 2 million USD or more will (unless they have the benefit of the dual citizen from birth exemption) be subject to the 877A Exit Tax.

Many people who expatriate own property jointly with a spouse. There are different forms of joint ownership. The most common form of joint ownership in Canada and many other countries is "joint tenancy".

Therefore, the question of how "interests held in joint tenancy" should be valued is vitally important. It can make a difference between whether an individual is a "covered expatriate" or not.

 

Assuming one is a "covered expatriate", it is also important to understand how the Exit Tax rules apply (in the context of joint tenancy) assuming one is a covered expatriate.

This podcast is an excerpt from a presentation given by John Richardson on March 17, 2021

Obviously it is not intended to be and should not be relied upon as legal advice for any specific individual.

The general message is that (in most cases) the percentage of the ownership should follow the percentage of the contribution.

Part 2 will continue with a discussion about Part 1.

 

 

 

 

 

 

 

 

Taxability of Canada's CERB payment and the US CARES Act payment for Dual Canada/US citizens residing in Canada

April 28, 2021 - Participants Include:

 

John Richardson - @ExpatriationLaw

 

Oliver Wagner - @1040Abroad

 

For dual Canada/US citizens living in Canada it's tax time. Specifically it's time to file both Canadian and US tax returns for the 2020 tax year.

2020 was a very difficult year. Dual citizens living in Canada may have received both the Canadian CERB payment and the the US CARES Act payment.

The basic principle, as discussed in this blog post, is that the Canadian CERB payment is taxable in both the US and Canada and that the US CARES Act payment is taxable in neither the US nor Canada.

 

US citizens residing in Canada may be eligible to receive up to $3200 US dollars of relief payments from the US government. This is  your money to do with what you please!

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Thanks to Olivier Wagner of 1040Abroad.com for participating in this  podcast.