FATCA: The need-to-know basis is not satisfied

The Isaac Brock Society

Soon after I finished my PhD, I had the experience of teaching as an adjunct professor in Ontario.  Eventually, I quit because I felt that the working conditions for contingent labor in higher education sucked–and they do:  just google the terms “adjunct hell”.  Then, I worked another job which I soon quit.  But to damage my reputation after I quit, one of the people from the second job asked for a reference via e-mail from the first employer and soon a flurry of e-mails had damaged my reputation among about a couple dozen people.  The first employer had even gone so far as to accuse me of “unpleasant breaches of trust”, not realizing that the term “breach of trust” is legaleze, usually for criminal behaviour related to money or the virtue of young women.  Later, the man apologized to me, saying that what he meant is that I had let them down.

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Introducing the Isaac Brock Society

This the “About” page  at the the Isaac Brock Society, which I wrote to explain the reason for the new blog.  The official launch of the new site was 13 Dec 2011, and it was started initially by myself and five other people who felt the need to fight back against the current policies of the US government vis-a-vis US persons living abroad.  If I have only blogged here infrequently, it is because of this new venture.

Posted by Petros — DECEMBER 14, 2011

The Isaac Brock Society consists of individuals who are concerned about the treatment by the United States government of US persons who live in Canada and abroad.

Sir Isaac Brock

The United States is one of two countries in the world that taxes its people no matter where in the world they may reside. The other is the terrorist thug nation of Eritrea. The majority of US persons who live abroad are not aware of their filing requirements. But recently, the US government has decided to crack down on those who are not in compliance.

But what is more, the US government has begun, since about 2004, to apply with great pressure a long-neglected requirement of 35-year old law called the Bank Secrecy Act. That requirement is FBAR, the foreign bank account report, which the United States government expects annually from those who have accounts outside of the United States which exceed $10,000 in aggregate. The fines for failure to file this form are extortionate, and virtually no US person who lives abroad even knew about FBAR, while most of them, over a certain age, own bank accounts with retirement savings exceeding that amount. The threats of fines and imprisonment has frightened many people who as a result have consulted expensive accountants and tax lawyers to get this mess sorted out, only to face high accounting or legal fees on top of potential fines and back taxes. In 2009 and 2011, the IRS offered voluntary disclosure programs (OVDI). Some who entered into the 2009 OVDI, because of fear of the penatlies, were shocked when the IRS assessed them fines in the tens of thousands, essentially treating them as tax evaders instead of a law abiding citizens in their countries of residence.

For many US expats, renunciation now seems like a really good idea. Why not? Many haven’t lived in the US for years and now they have few ties there except perhaps some family members. So they want to renounce their citizenship only to find that the laws regarding expatriation are confusing and that the exit tax requirements are at best complicated and invasive, and at worst, extortionate and utterly in violation of their right to expatriate.

The media coverage of this issue has been uneven. There have a been a few balanced stories, but most of the time, the media has merely publicized the purposes of the US government; this is especially true of US media sources. The Canadian media has generally done a much better job of grabbing the attention of the world about the abuses of the US government. That being said, even the Canadian media sometimes falls into the IRS trap of projecting fear in order to force compliance. Overall, we regret when the media offers only condemnation and fear without telling the story from the side of the victims or informing them of their rights and alternatives.

US persons abroad also face US border guards who are starting to put pressure on all those who have a US place of birth to travel only on a US passport, even if the person has not been a US person for decades–an arbitrary change of policy making those who relinquished citizenship into would-be loyal taxpayers to a profligate government that has to borrow 40 cents on every dollar its spends.

The Isaac Brock Society is here to fight. Sir Isaac Brock Brock prepared Canadians for war with the United States and gave his life in repelling a US invasion in 1812. So also we want to fight for US persons who are frightened by the IRS, the border guards, and the media. We are here to provide one another with resources and strategies, comfort and advice.

But not only so, we are here to warn other Canadians about the illegal incursion of the US federal government into the lives of the US expat community. Pretty soon, with the new FATCA legislation, this arrogant attitude of the United States will affect every man, woman and child on the planet who wants to open or maintain a bank account or to invest in a retirement fund. Now, according to FATCA, you will have to tell the United States whether you are a US person when you open up a bank account in, e.g., Australia or Thailand. This makes every country in the world a protectorate of the United States, for, if they comply with FATCA, they are a ceding their sovereignty to nation which has not invaded or conquered the rest of the world, but only uses its waning hegemony over the financial sphere to coerce other nations.

So whether you are a US person living in exile, a Canadian or a citizen of any other country, we ask you to join us in this struggle for freedom and justice.

If Obama is a global citizen doesn’t that make him the President of the world?

The new FATCA legislation, signed by President Obama as part of the Hire Act, requires that every person in the world who owns a bank account declare whether he is a US person.  Imagine if the Chinese required that every bank account holder in American banks fill out a form declaring whether they are a Chinese person for tax purposes!  What would you say?  None of their damn business.

Obama must think he is the president of the world.

 

Isn’t this the way it starts?  With great speeches accompanied by ignoble acts of coercion?

United States Citizenship: The Hotel California

[The version of the song that I had up is all gone now, but this new link is pretty good too]

This is the best version of the Eagles song that I’ve ever heard.  United States citizenship is the Hotel California:  “You can check out any time you like, but you can never leave.”

[I found the unplugged version at Daily Motion]

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