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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
Friday Jan 29, 2021
Friday Jan 29, 2021
January 17, 2021 - Participants include:
In the world of global mobility, there is great emphasis immigration and emmigration. There are many reasons why people seek second citizenships or residences. That said, every change in mobility may (or may not) create a change in tax residence. Changes in tax residency often have profound changes on wealth and opportunities. All countries have domestic tax rules. But, often these tax rules are modified by bilateral tax treaties between counties. Tax treaties impact tax residency, the amount of tax paid, information exchange and gradually more and more enforcement. In this episode, David Lesperance and John Richardson various ways these tax treaties can impact lives (including the future of the "Revenue Rule").
(See also my next podcast which focuses specifically on the saving clause of the standard US tax treaty.)
Wednesday Jan 20, 2021
Wednesday Jan 20, 2021
January 20, 2021 - Participants Include:
John Richardson - @Expatriationlaw
Dr. Karen Alpert - @FixTheTaxTreaty
Dr. Laura Snyder - @TAPInternation
Suzanne Herman - @SuzanneHerman1
Keith Redmond - @Keith__Redmond
The core mission of SEAT is to "Stop Extraterritorial American Taxation".
Extraterritorial American taxation is system that imposes worldwide taxation, on the non-US income of people who live outside the United States in other countries. US taxation of nonresidents is the reason for FATCA.
But:
1. Ending FATCA will NOT "Stop Extraterritorial American Taxation"; but
2. Ending "Extraterritorial American Taxation" will end the rationale for FATCA.
This podcast includes a discussion of (1) what Extraterritorial Americans taxation is and how it impacts people who live in other countries.
The message: individuals impacted by "Extraterritorial American Taxation" must understand that the "original sin" is "Extraterritorial American Taxation". Those impacted by these unjust and immoral U.S. tax policies must understand that this is a problem that is bigger than one individual. Things that do not affect you today could affect you tomorrow. Extraterritorial American Taxation must end.
"If we don't hang together, we will hang separately!"
Sunday Jan 17, 2021
Sunday Jan 17, 2021
January 3, 2021 - Participants include:
Canada is a Westminster democracy. The Canadian constitution includes a "Peace, Order and Good Government Clause". It is a stable place to live, a stable place to invest and (probably) a stable place to retain your wealth.
It's no surprise that Canada continues to be a top choice for immigration.
My second podcast with David Lesperance discusses some of the additional reasons why many would be well advised to consider residence or a second residence in Canada.
Monday Jan 11, 2021
Monday Jan 11, 2021
January 3, 2021 - Participants Include:
2020 was a difficult year for many and an unsettling year for all. It reinforced the dependencies people have on stability and predictability. It also reinforced the need for flexibility and "back up" plans.
In my first podcast of 2021 I discussed these issues with mobility consultant David Lesperance of "Lesperance Associates".
David is the author of "Flight Of The Golden Geese" which explains the dependency that governments have on the tax revenues extracted from the few and why those few are incentivized to to seek alternative residences and citizenships.
Sunday Jan 03, 2021
Sunday Jan 03, 2021
January 3, 2021 - Participants Include:
John Richardson - @ExpatriationLaw
Peter - A Retired London, UK Based Lawyer
This podcast features the experiences and perceptions of a person who is NOT and never was a U.S. citizen. But, approximately 40 years ago he married a U.S. citizen and had U.S. citizen children.
The discovery of U.S. citizenship tax rules led the family down a path of discovery where they gradually understood the principles of: U.S. citizenship, U.S. citizenship-based taxation and how the U.S. exports citizenship-based taxation to other countries.
The podcast includes a discussion of how the toxic mix of citizenship and U.S. taxation impacts individuals AND how it undermines the fiscal policies of other nations (in this case the UK).
Of particular interest is a discussion of how the evolution of the law of U.S. citizenship (harder to lose) and U.S. taxation (infinitely more complex) has exacerbated the problem.
Ultimately, the problem is not FATCA. The problem is not citizenship. The problem is not even the rules of U.S. taxation.
The problem is that:
The United States is imposing worldwide taxation, on people who are tax residents of other countries and do NOT live in the United States.
This discussion is valuable for individuals with U.S. citizenship who are attempting to live productive and normal lives outside the United States.
The discussion is also valuable for those government policy makers who value the sovereignty of their countries and wish to end the U.S. creeping encroachment on the sovereignty of their countries. The discussion reminds me of a post that I write in 2015 describing how FATCA and U.S. tax rules burden Canada's sovereignty.
Ultimately all U.S. citizen members of the family renounced their U.S. citizenship.
Listening to this podcast explains why, for Americans abroad, ...
"All Roads Lead To Renunciation!"
Tuesday Dec 29, 2020
Tuesday Dec 29, 2020
December 29, 2020 - Participants Include:
Hank Adler - Chapman University
John Richardson - @ExpatriationLaw
On December 18, 2020 Mr. Adler's article appeared on the Wall Street Journal began with:
"California’s Legislature is considering a wealth tax on residents, part-year residents, and any person who spends more than 60 days inside the state’s borders in a single year. Even those who move out of state would continue to be subject to the tax for a decade—a provision that calls to mind the Eagles’ famous “Hotel California” lyric: “You can check out any time you like, but you can never leave.”
You can read the complete article here ...
I am pleased to have interviewed Mr. Adler - a man with a wealth of experience in taxation and tax policy. If we sever the title of the Wall Street Journal article into two parts we see that:
1. On the one hand, California has a - Plan To Chase Away The Rich - California tax policies are driving people away; and
2. On the the other hand California wants to - Keep On Stalking Them - California's proposed wealth tax purports to tax them on for ten years on their worldwide assets, which includes assets that have no connection to California and were acquired AFTER the individual moved from California.
This has many similarities to Exit taxes in general and the IRS Section 877A Expatriation Tax in particular.
By the way, those Canadians who winter in California and have sufficient assets would be subject to this proposed wealth tax!
Tuesday Dec 15, 2020
Tuesday Dec 15, 2020
November 12, 2020 - Participants include:
John Richardson - @Expatriationlaw
Jimmy Sexton - @JimmySextonLLM
"The United States has learned how to keep capital in and how to attract foreign capital!"
In this episode, Jimmy Sexton and John Richardson discuss why the United States is such an attractive place to invest for nonresident aliens. In other words, the opportunities are NOT available to U.S. citizens or U.S. residents.
Topics discussed include:
- how U.S. tax laws are desgined to attract foreign capital to from a U.S. tax perspective
- how U.S. tax laws which promote secrecy operate to enhance the role of the United States as a tax haven
- how the combination of FATCA (the U.S. demands your information but will not reciprocate) and the refusal to sign CRS (the U.S. will not share information) have enhanced the attractiveness of the United States as a tax haven
- how the use of LLCs and foreign Grantor Trusts can be used by nonresident aliens
- how the U.S. tax rules that are used to attract foreign capital planted the seeds that grew into the current S. 877A expatriation tax
Warning! Do NOT die with U.S. situs assets in your name. How to structure your assets to avoid the U.S. estate tax
There are Havens, Tax Havens and Tax Haven USA - there is no substitute!
Thursday Dec 10, 2020
Thursday Dec 10, 2020
December 10, 2020 - Participants Include:
John Richardson - @Expatriationlaw
Marc Zell - Jerusalem based International Lawyer
On December 9, 2020 the Association Of Accidental Americans launched a lawsuit against the US Department Of State on the basis that the $2350 USD renunciation is unconsitutional.
I am pleased to have been joined by their lawyer Marc Zell to discuss the lawsuit.
I have written a post discussing the claim here:
A direct link to the claim is here:
http://citizenshipsolutions.ca/wp-content/uploads/2020/12/AAA-vs-DOS.pdf
Friday Dec 04, 2020
Friday Dec 04, 2020
November 12, 2020 - Participants Include:
John Richardson - @ExpatriationLaw
Jimmy Sexton - @JimmySextonLLM
It is becoming clear that the United States is gradually moving toward a tax system that includes taxation based on non-realization events. In other words, taxes may be owing even when there is no income.
Examples include (but are not limited to): the Subpart F regime (particularly the transition tax and GILTI) and the S. 877A Exit Tax Regime. The PFIC regime creates artificial income based on a fictional charge on tax deferral.
The recent Democratic Party nomination process introduced wealth taxes into the vocabulary of taxation. In particular, Elizabeth Warren campaigned on a platform of wealth taxation. In the case of a wealth tax there is no realization whatsoever. The tax is based ONLY on your owning an asset.
Although it is unlikely that a wealth tax will become a reality soon. But, it is coming. In fact, I think it would be appropriate to call the first version of the Wealth Tax: "The Senator Elizabeth Warren Wealth Tax".
On November 12, 2020 Jimmy Sexton and I discussed the nature of wealth taxes.
Sunday Nov 29, 2020
Sunday Nov 29, 2020
November 29, 2020 - Participants Include:
John Richardson - @Expatriationlaw
Diane Gelon - London, UK based New York lawyer
One the hand one, many Americans abroad are desparate to pay the $2350 USD fee to renounce US citizenship. On the other hand, the US State Department has stopped providing appoints to renounce.
Do US citizens have the right to renounce?
The 1868 Expatriation Act suggests that they have a statutory right to renounce.
R.S. § 1999 provided that: “Whereas the right of expatriation is a natural and inherent right of all people, indispensable to the enjoyment of the rights of life, liberty, and the pursuit of happiness; and whereas in the recognition of this principle this Government has freely received emigrants from all nations, and invested them with the rights of citizenship; and whereas it is claimed that such American citizens, with their descendants, are subjects of foreign states, owing allegiance to the governments thereof; and whereas it is necessary to the maintenance of public peace that this claim of foreign allegiance should be promptly and finally disavowed: Therefore any declaration, instruction, opinion, order, or decision of any officer of the United States which denies, restricts, impairs, or questions the right of expatriation, is declared inconsistent with the fundamental principles of the Republic.”
The 1967 U.S. Supreme Court decision in Afroyim suggests they have a constitutional right to renounce.
The fact is that there is no bar to conducting renunication appointments through video conferencing. It's too bad that the US government won't allow this.