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Wealth Professional | 16 Jan 2014, 08:37 AM Agree 0
With the pending implementation of a new U.S. tax law, now is the time to find out who of your clients are American citizens and how to safeguard their investments.
  • David Zimmerly | 19 Jan 2014, 07:48 AM Agree 0
    If Canada does indeed sign an IGA with the U.S., there will be major Charter challenges and class-action suits. Most of these so-called U.S. Persons are also Canadian citizens who enjoy the same rights and protections under Canadian law as anyone else. It is illegal for banks to ask their customers their place of birth or to deny them services on the basis of their national origin. While the compliance industry keeps prattling on about the "inevitability" of FATCA, nothing could be further from the truth. The entire world is just beginning to wake up to what a monstrous, extraterritorial overreach FATCA represents. If and when the U.S. is foolish enough to actually apply 30% withholding, the blowback domestically of capital flight from foreign investors and creditors will straighten them out in a hurry. FATCA will fail miserably.
  • Douglas Wright | 20 Jan 2014, 04:50 PM Agree 0
    I agree with David.

    Peter Hogg, who is arguably Canada's foremost constitutional lawyer has opined that FATCA would not withstand a constitutional challenge in Canada. FATCA represents the ultimate in American arrogance and stupidity. To think that people who live and pay taxes elsewhere are the solution to their financial quagmire!! Amazing!!

    Will Obama be submitting an FBAR to Kenya?

    Russia has refused to sign unless there is full reciprocity, and insists that American law cannot interfere with the operation of Russian financial institutions. Canada should insist on the same, to which of course, Americans would not agree. Americans obviously think that territorial overreach is their exclusive privilege.

    FATCA will fail for another reason that few people have predicted. In my judgement, it is only a question of when (not if) the US$ will lose its status as the world's reserve currency. When that happens, FATCA will be toothless.

    From what I can see, the process of the US$ losing that status is already under way. Signatories to date on FATCA are pitifully few. Refusal to accept US dollars is gaining momentum.

    Americans are so desperate to increase their exports that they have taken to exporting their laws.

    Our sheeple in the compliance industry should stop cackling like sheep and grow some balls.
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