FATCA: More US Expats Consider Handing In Passports
by Mike Godfrey, Tax-News.com, Washington
18 July 2014
Four out of five American expatriates are considering giving up their United States citizenship due to the ongoing implementation of the Foreign Account Tax Compliance Act (FATCA), according to a new survey by the deVere Group.
The deVere Group, an independent international financial consultancy, surveyed 414 of its American expat clients, and found that 79 percent said they had "actively considered, are thinking about or have explored the options of" renouncing their US passport due to the implications of FATCA, which came into force on July 1.
It was disclosed that the number is up by 11 percent over the same poll carried out last November, in which 68 percent had answered in the affirmative.
"The 11 percent jump in the number of Americans who are tempted to sever official ties with the US highlights how the true scope of FATCA's adverse effects is now really hitting US citizens who live or work overseas," said Nigel Green, deVere Group's founder and chief executive.
Respondents to the latest survey flagged up specific problems, such as not being able to open bank accounts in their countries of residence, having existing ones shut down by banks, or the costs and lengthy processes of complying with FATCA. Green added that "some told us that they felt they were now under suspicion by the Internal Revenue Service, even though there was no question of any wrongdoing or having any taxes owing."
"It's our experience that most American expats are proud patriots and are loth to give up their US citizenship," Green concluded. "With this in mind, and taking into account other potential considerations, including 'exit taxes,' it is recommended that expats explore all the available options to them about how to mitigate the effects of FATCA before citizenship is renounced."
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Leave a comment
Is FATCA here to stay?
Olga Reguzzoni on Friday, July 25, 2014http://wh.gov/leqnj
Dan on Thursday, July 24, 2014Sign this petition to try to make your voice heard -- you may be targeted by US tax law, and you may not even be able to vote in the US! Taxation, without representation...
Please stop penalizing working American Persons living and paying
taxes abroad via the onerous regulations of FATCA.
Many American working men and women abroad are being penalized by being taxed by the United States despite having no income in the US. Retirement savings (e.g. Canadian RRSPs) and other basic income are being taxed despite often being already taxed in their home countries. This "citizenship based taxation" is considered across the world to be a human rights violation - such that the only other country in the world that practices it,
Eritrea, was condemned for this practice by the US state department. Even non-citizens who may have been born in the US are subject to this law. Designed to target wealthy tax cheats, this law ensnares 17 million Americans abroad, and millions more non US citizens who were unfortunate enough to be born in the US, with no voice or vote to challenge it.
No other nation treats its expats living abroad as poorly as the United States Government. In fact, for US expats living in any other first or second world country, the U.S. government is the biggest threat they face. The US must stop trying to force a square peg in a round hold - Residence Based Taxation (RBT) is the world standard and the US must move to RBT and stop its enforcement of Citizenship Based Taxation (CBT).
Steve on Saturday, July 19, 2014US citizenship is no longer a viable option for people living abroad. To protect themselves and their families from the USA, they will need to renounce. I expect the expatriation rate to peak out at just under 100% in the near future, as more so called "US persons" are targeted by the USA or simply become aware of the existential risks involved in holding a US passport outside of the USA.
Guest on Friday, July 18, 2014