Americans Abroad Renounce Citizenship to Escape Tax Law’s Clutches

[rvZA]

A growing number of Americans are renouncing their citizenship to escape a law that was designed to crack down on offshore tax evasion.

The Foreign Account Tax Compliance Act, or FATCA, requires foreign banks to report the assets of US account holders to the Internal Revenue Service. It was designed to go after wealthy Americans keeping money overseas to avoid taxes, but is also ensnaring regular people living abroad. Rather than risk steep penalties for failing to provide the information, some banks refuse to open accounts for US citizens at all.

This is particularly frustrating for so-called accidental Americans — people who are citizens of the US because they happened to be born there or because one parent is American but don’t have a connection to the country.

Bloomberg - Are you a robot?

www.bloomberg.com

 

[rvZA]

And a large number of US companies also started fleeing their operations and head offices abroad. Some of them a second time. Well done to the Democrats for killing a first-world country in less than a year and a half. Took the ANC 25 years to achieve the same.

 

[dillinger]

Nothing new. My GF who has been living in SA for the past 11 years is supposed to file her return every year but has never done so as it's very expensive and complicated as you need a auditor. I am almost certain the same actually applies if you are a green card holder. When she opened a bank account in SA she had to sign forms that give the bank permission to give all her banking records to the US revenue service.

To renounce US citizenship will cost you $2,350

 

[kolaval]

@rvZA
If the act was to get companies to pay taxes how is that killing a first world county?

 

[rvZA]

@rvZA
If the act was to get companies to pay taxes how is that killing a first world county?

When you start milking your companies for taxes, you cause them to leave your shores. The operations they leave behind contribute even less taxes. As with Trump, his policies caused hundreds of companies that left the US during Obama's period to return their head offices to the US. Most of them already left again under Biden and will now likely never return again.

 

[deweyzeph]

In most countries the concepts of citizenship and tax residency are 2 completely separate and unrelated things. Pretty sad that Americans have to give up their citizenship just to stop being tax residents.

 

[koeks525]

Damn, one has to create an account to view that article. Sad.

My question around this topic is, doesn't the United States have tax treaties/agreements with many countries? Wouldn't these treaties avoid the effects of paying tax "twice"? The act of renouncing citizenship is a very big decision to make and is irreversible once completed. Citizenship-based taxes sure is a pain... I think it is just the USA and Myanmar that have this tax regime in place.

 

[bwana]

Nothing new. My GF who has been living in SA for the past 11 years is supposed to file her return every year but has never done so as it's very expensive and complicated as you need a auditor. I am almost certain the same actually applies if you are a green card holder. When she opened a bank account in SA she had to sign forms that give the bank permission to give all her banking records to the US revenue service.

To renounce US citizenship will cost you $2,350

You don’t need an auditor or accountant to file an FBARs.

 

[deweyzeph]

Damn, one has to create an account to view that article. Sad.

My question around this topic is, doesn't the United States have tax treaties/agreements with many countries? Wouldn't these treaties avoid the effects of paying tax "twice"? The act of renouncing citizenship is a very big decision to make and is irreversible once completed. Citizenship-based taxes sure is a pain... I think it is just the USA and Myanmar that have this tax regime in place.

You pay Uncle Sam first.

 

[rvZA]

Damn, one has to create an account to view that article. Sad.

My question around this topic is, doesn't the United States have tax treaties/agreements with many countries? Wouldn't these treaties avoid the effects of paying tax "twice"? The act of renouncing citizenship is a very big decision to make and is irreversible once completed. Citizenship-based taxes sure is a pain... I think it is just the USA and Myanmar that have this tax regime in place.

I think when your government goes belly up and start increasing taxes and keep doing so, it would make sense to leave, get new citizenship and renounce your US citizenship. Once renounced, you are free from those tax threats and penalties.

I agree with you that it is a big decision to make. But, with America is quite a no-brainer. The country is no longer the once greatest nation. It is down the tubes. Americans are fleeing their country in droves, the biggest exodus they have ever experienced.

Crazy times.

 

[chrisc]

Live in Portugal, Malta or Slovenia for 4 years and get EU Citizenship. Then you don't have to lie to the bank

I know 2 people who emigrated to Portugal, in 2015 and 2017 and are both now EU citizens. It didn't cost them any extra when they elected to become Portugese citizens.

In Slovenia you can continue to speak English

 

[deweyzeph]

Live in Portugal, Malta or Slovenia for 4 years and get EU Citizenship. Then you don't have to lie to the bank

I know 2 people who emigrated to Portugal, in 2015 and 2017 and are both now EU citizens. It didn't cost them any extra when they elected to become Portugese citizens.

In Slovenia you can continue to speak English

Technically there's no such thing as EU citizenship. There is only citizenship of a country that is a member of the EU.

 

[Mike Hoxbig]

Well done to the Democrats for killing a first-world country in less than a year and a half. Took the ANC 25 years to achieve the same.

You really do post the biggest load of kak sometimes...

 

[Bill Clitnon]

You really do post the biggest load of kak sometimes all the time...

Ftfy

 

[Bill Clitnon]

In Slovenia you can continue to speak English

And go on the hunt for some fine Slovenian poon, ala Trump.

 

[Bill Clitnon]

Damn, one has to create an account to view that article. Sad.

My question around this topic is, doesn't the United States have tax treaties/agreements with many countries? Wouldn't these treaties avoid the effects of paying tax "twice"? The act of renouncing citizenship is a very big decision to make and is irreversible once completed. Citizenship-based taxes sure is a pain... I think it is just the USA and Myanmar that have this tax regime in place.

Apparently Hungary, Eritrea and Tajikistan too.