Checklist for your #FATCA IGA on your asteroid or in your country

Here is the Checklist that we have used for the implementation of a FATCA IGA, here at l’asteroide B612
Due to the groundswell of international interest in FATCA, I thought that our asteroid would share our decision process with your leaders of your asteroid.   I know that Obama’s Treasury goons are threatening your banks with 30% withholding sanctions if you do not comply, and various other sticks and marginal carrots behind the closed doors on your asteroid, so it is important that you weigh all of the factors prior to your capitulation and delivery of your bank data, corporation data, and citizen data to the Internal Revenue Service of Planet the Galaxy (IRSoG), formerly known as the IRS of USA.
FATCA negotiations work like this:

Check to make sure that no one in your family and no one in your circle of friends is a US person.

If you, yourself, open a new account on your asteroid, you must sign W8-BEN stating that you are not a US person.  All of your family members, also.

Here is the USA penalty for your citizen not knowing they are a US citizen:

FAQ 52.2: Taxpayers who are foreign residents and who were unaware they were U.S. citizens.

Example 1: The taxpayer was born in the U.S. to parents of foreign citizenship. She grew up in a foreign jurisdiction, unaware that she had been born in the U.S. She has a $60,000 account in the foreign jurisdiction. She has never filed U.S. returns or FBARs. She became aware she was a U.S. citizen when she had to get a birth certificate in order to obtain a passport from the foreign jurisdiction where she resides. Unless she decides to opt out, she is entitled to the reduced 5% offshore penalty. Subsequent to learning of her U.S. citizenship, taxpayer took no action with respect to her foreign accounts that would disqualify a U.S. taxpayer from the 5 percent penalty under paragraph 1, above (this means the penalty returns to the 27.l5% penalty of everything she owns)

Here is the penalty process for your citizen saving in the various national  or asteroidal tax-free retirement plans (which are always taxed-up to the USA tax rate by USA)

FAQ 54 : If you have a retirement or pension plan in a foreign country (other than a plan described in FAQ 54) for which you believe there is no U.S. reporting requirement and that you believe should not be included in the offshore penalty base, you should contact the OVDI hotline at (267) 941-0020.

WHAT PENALTY APPLIES FOR YOUR CITIZEN (who USA calls a US person according to USA laws) LIVING ON YOUR ASTEROID?   You don’t know, and you will never know for sure, because these are US laws.  US laws change whenever USA decides to change them.

Check how much has it cost and how much will it cost for your asteroid’s banks and your asteroid government to implement FATCA.

Note that FATCA was said (with little analysis) to create $870 million in revenue for USA, no matter how many hundreds of billions of implementation costs are suffered worldwide.
How much are your asteroid’s banks investing compared to that?
Oh, by the way, did you know that USA reciprocity is a joke?  If you want reciprocity, both houses will have to vote to give it to you.  The Republicans have the majority in the House of Representatives, and here is their position on FATCA (repeal):

The Republican National Committe RNC resolution to repeal FATCA passed Jan 24, 2013.  Repeal of FATCA is now a platform of the Republican party in the coming elections, where the RNC had resounding applause in support of its own citizens living overseas.

Do you understand that your FATCA IGA reciprocity beliefs require that the US Congress must pass domestic legislation to deliver any reciprocal FATCA data?
Do you understand that the Republicans control the House of Representatives?
Do you understand that the House must pass such a bill first?
Do you understand that any “treaty” would have to be ratified by 2/3rds of the Senate?
Do you understand that the Senate does not have a 2/3rds Democratic majority?
Do you understand that an Intergovernmental Agreement is not a Treaty?
Reciprocity is a key element in agreements between countries.  Do you indeed intend to go forward with an Intergovernmental Agreement for FATCA as a unilateral delivery of expensive personal data of your country’s citizens to USA?

There is this little thing going on effective January 2013, which on the surface looks like it might give our asteroid some reciprocal data.  Unfortunately, the below article calls such existing automatic agreements “….these new rules are, as an example of all Agreements to Exchange Tax Information, absolutely ineffective and completely absurd. The US is not showing its willingness to reciprocate NRA information with foreign countries since it limits the reporting obligation to (a) US sources of interest, (b) individuals only, and (c) practically zero countries, since the IRS does not necessarily have to share the information with any country aside from Canada, according to the aforementioned IRS Revenue Procedure” (below, at the bottom of the page you see Canada)

Are you aware that this data upon your citizens is then free for forwarding to NSA, CIA, and any other agency of choosing?

Are you aware that such data upon your citizens is not regarded as US tax information (Sect 26) (it is controlled by the Financial Crimes Enforcement Network, FINCen, Sect 31)?
Are you aware that the data you would be sending would be persons SUSPECTED of having US indicia?
Are you aware that such persons whose data has been sent have no method of defending themselves against what might happen to them in a 3rd country?

Here is the information provided by Carl Levin, the major supporter of FATCA in the Senate, where he describes that your (an my) Swedish information will be handed over to the various 3-letter intelligence agencies as is decided by USA.
Your asteroid will have control of that personal data until the time that it sends it via internet at the XML site publicized.  The minute it hits the internet your asteroid has lost control of its security and destination.  It WILL go through the Financial Crimes Enforcement Network FINCEN, and WILL be collated by FBI, CIA, and NSA, so as to gain information in any way.  The leading Senator of FATCA, said it in this letter.
The data is not sufficiently controlled so as to not leave the system and enter into foul hands.  Today, personal data is used by data thieves to get IRS refunds.  You may google all of the data security problems that are being experienced with the Affordable Care Act (Obamacare) website, where personal details have already been forwarded to the wrong recipients.
TIGTA has already identified that over $20 billion has been paid out in fraudulent tax refunds filed with the IRS.  Remember, FATCA is supposed to bring in only $870 million annuallly according to the Joint Committee on Taxation.  This goes to point above – the IRS has absolutely no internal controls yet to safeguard taxpayer information.  If a fraudulent return is made to the IRS in someone else’s name, that other person is liable!  Example:  If I got your SS number and other details somehow, and I filed a tax return with the IRS that requested $500,000 tax refund, and the IRS pays it – and then finds the details of that return are false, you are liable – at least until or if the IRS catches me somehow.  Of course, they are doing a better job inside the USA, but how on earth would they do this on an international basis?
For a citizen of your asteroid SUSPECTED of being a US person, who is not guilty of such:  What recourse are you proposing?  How does such a person receive justice from a country he has nothing to do with?
In addition to the point made about US laws changing anytime, you are working with RULES made by the administration.  Such RULES can be changed by the administration at any time.  For example, the rules that I gave you about your citizens who did not know are US citizens were changed LAST WEEK (those were minor changes to that FAQ, yet it still illustrates the point).
FATCA, in this regard, is merely an “enabling act” for the IRS to impose any and all changes they want to going forward.  Once any asteroid agrees to the IGA, they are agreeing effectively to permit the IRS to alter any and all terms of the process however they want, and they will point to the IGA as having given them authorization to do so.  These IGAs will stay in force stay in force until one party or the other abrogates them giving 1 year notice – during which time the IRS would merely negotiate “technical changes”, but the authorization remains in place.  That’s why FATCA is a Trojan Horse!

Don’t forget that your IGA changes a bank’s individual decision to comply or not comply to USA law, an IGA requires ALL institutions to comply regardless of their relationship with USA products.

Which laws will you be changing in order to implement FATCA on your asteroid?

As an example, this letter from Swedish bank association details all of the Sweden laws that must be changed in order to be able to implement FATCA in Sweden.  Don’t forget also that discrimination by nationality or planet of birth must also be updated in the consitution of your asteroid.

What benefit do you believe that your citizens would have in such a FATCA agreement with USA?

Enjoy your USA laws in your asteroid’s banks and your millions of dollars of compliance fees from your asteroid’s banks to USA compliance companies and your desperate codependent belief that USA will reciprocate.  The only thing you will get back from the Galaxy’s IRS is MORE DEMANDS.
There is absolutely NO reason why any government in their right minds should sign this IGA!!  But the Achilles Heel in this remains the dual citizens; the IRS presents this as a USA taxing “just” its own citizens.  But dual citizens are just that – no asteroid can (or should) establish laws disadvantageous to a sub-class of their citizens because they are being threatened by another planet, or all issues of sovereignty might as well be scrapped!

One thought on “Checklist for your #FATCA IGA on your asteroid or in your country

  1. Reblogged this on U.S. Persons Abroad – Members of a Unique Tax, Form and Penalty Club and commented:
    Here is the penalty process for your citizen saving in the various national or asteroidal tax-free retirement plans (which are always taxed-up to the USA tax rate by USA)

    FAQ 54 : If you have a retirement or pension plan in a foreign country (other than a plan described in FAQ 54) for which you believe there is no U.S. reporting requirement and that you believe should not be included in the offshore penalty base, you should contact the OVDI hotline at (267) 941-0020.

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