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Thursday, July 30, 2015

What's on the anti-FATCA Menu Today?

May I call your attention to an excellent summary of the various anti-FATCA initiatives being served by a restaurant near you?

In his post Goat Rodeo Roundup Deckard1138 notes that we've gone from empty plates to actually having a menu with choices.  
"The calm-before-the-storm waiting game of the last few years is now clearly giving way to frenzied activity and veritable verbal warfare across multiple organizations and web sites around the globe. The big-picture dots of this reality have not yet been fully connected into a single post and thread, so that’s why I’m starting this one." 
There are three main anti-FATCA initiatives:

  • Alliance for the Defence of Canadian Sovereignty (lawsuit filed against FATCA in Canada)
  • FATCA Legal Action (lawsuit filed against FATCA in the US)
  • Same Country Exception/Safe Harbour

Each one approaches FATCA very differently.   ADCS is about fighting FATCA outside the US and attacks the implementation of the law in the Canada saying that it is incompatible with the Charter Rights of Canadian citizens.  The FATCA Legal Action lawsuit was filed in the US and tackles FATCA from within the US arguing that FATCA deprives American citizens wherever they live of their rights under the US Constitution.

The third which is commonly referred to by the acronym SCE, is an effort to mitigate FATCA.  It asks for an exception for US Persons holding local (foreign to the US) bank accounts in the countries where they live and work. If these US Persons are both legal residents of another country AND tax conpliant with the US, then their accounts would not be reported to the US IRS.   This exception would leave FATCA itself essentially intact.

To complicate matters there is the issue of who the waiters are this evening.  Each one is touting his or her Special of the Day. But some customers don't care for what they think the waiters are wearing (Red or Blue or the cloak of anti-Americanism) and they definitely don't want what they order to be taken as a reflection of their ideological, political or personal views.  The uncivil polarized political landscape that characterizes the United States today is repugnant to many Americans abroad and they will resent being dragged into it.

That's what's on the menu and if Americans abroad/US Persons are a party of 7+ million people I'd say it's going to take some discussion before anyone is ready to order.

 As I look at it I try to remember that I am not what I eat, and that leaving the restaurant still starving is far worse than a mild case of indigestion.


Unknown said...

...and the actual price of your menu selection will be the subject of another post?
For the moment, it's a little like the fancy restaurants where the woman (why always the woman?) is given a menu with no prices and only the man knows how much her caviar is going to cost...but then, in this case, even the waiters don't know how much it's going to cost!!!

Love your analogy...

DL NELSON said...

What makes anyone think banks will consider local exceptions? they have spent fortunes in money and employee costs already under threat of heavy punishments. Will they risk opening American accounts? I doubt it, but I were A bank Ceo, I'd be really pissed off at being bullied and jerked around.

Anonymous said...

You forgot about the lawsuit filed in Liechtenstein, where the court's decision is expected in September. Let's keep our fingers crossed !!

Anonymous said...

I agree with DL NELSON. Unless FATCA is scraped and the US adopts the CRS (Common Reporting Standard), I think FFIs will continue to discriminate against Americans.
And who wants to continue to play with the bully or his minions even if the bully says he's changed. I am afraid FATCA has done irreparable damage.

Unknown said...

the US and all governments will defend their positions and delay any rollback of FATCA and IGA's. Meanwhile the data will flow and the US will use data regardless of the final court rulings.

Blaze said...

The compliance condors are obese from feasting off the FATCA menu. The IRS and NSA are licking their chops waiting for their full course meals.

I hope we can give them all their just deserts.

Anonymous said...

Frist step to defeat FATCA is to vote a conservative Republican for 2016.

Tim said...
This comment has been removed by the author.
Tim said...

In the aftermath of the Canadian court hearing on August 5th I do think there is a substantial sea-change in the role of Americans Abroad. Americans Abroad are no longer Americans Abroad but French people in France, Canadians in Canada etc.

Why is this? Simply ADCS(The Canadian anti FATCA) beat all the other groups to the punch including Republicans Overseas. ADCS was able to deliver action by going outside the US political system in the present while AARO, ACA, DA, and RO continue within in the US political and legal system only to promise "future" action.

For better or worse August 5th for American Expatriates was the "end" of what you might call the "traditional" phase of association which began with the granting of voting rights and the creation of traditional diaspora orgs such as FAWCO, AARO, and ACA back in the 1970s.

A historical analogy might be the 1970s kidnapping of Kim Dae Jung in Tokyo by South Korean agents which caused the majority of the South Korean diaspora in Japan to cease identifying with South Korea and instead identify as Japanese from that point going forward.

2016 said...

May be FATCA victims can get some helps from ACLU lawyers .
We really need a business minded president like Carly or Trump for 2016. We don't need new taxes or even more complicated regulations.
FATCA is screwing small American business big times.

EmBee said...

It's been awhile since you posted, Victoria. I hope all's well. If you are goofin' off then that's a good thing ... you deserve a blog break. Oh, just occurred to me that you might be cookin' up a piece for publication ... that's a good thing too. Just wishing you all the best and I hope Japan is all warm and sunny.

Leslie in Oregon said...

I join EmBee in having noticed that you haven't posted since July 30. I write only to let you know that I miss reading what you have to say and hope that life is going well for you. All the best, Leslie

Anonymous said...

Victoria, the amazing MEP Sophie in't Veld has just raised the issue of the illegality of the FATCA IGAs in the EU Parliament, tabling written questions for them to address:

".....For any readers in the EU, and in the Netherlands, you might notify MEP Veld of the ADCS lawsuit in Canada against the FATCA IGA – and include links to the documents from both sides. It provides additional fuel for her related to the observations she made re the US lawsuit . She may recognize that there is informed academic and legal support for the view that the IGAs are not legal in the US

There is also now a dedicated EU thread here;

And others are starting to organize opposition where they live:

And in addition, I hope that someone will notify Allison Christians of in’t Veld’s formally tabled questions to the EU Parliamentre the legality of the IGAs. "