PREP Podcaster - ”Success Favours The PREPared Mind”
News:News Commentary
December 18, 2022 - Participants include:
Tim Smyth - @Tpsmyth01
John Richardson - @Expatriationlaw
This spells trouble!!
_______________________________________________
The text of the treaty document can be found at: https://home.treasury.gov/system/files/131/Treaty-Croatia-12-7-2022.pdf
Treaty-Croatia-12-7-2022
Of particular note in Treasury’s announcement is:
“The Treasury Department is pleased to conclude this new tax treaty with Croatia. It is the first comprehensive tax treaty that the United States has signed in over ten years and reflects our current tax treaty policies and is a milestone in the Treasury’s efforts to expand the U.S. tax treaty network. We appreciate the collaboration Croatia showed throughout the negotiations,” said Lily Batchelder, Assistant Secretary (Tax Policy).
The new tax treaty closely follows the U.S. Model income tax treaty.
Treasury’s announcement focuses on the mutually beneficial aspects of the US Croatia tax treaty. Notably Treasury’s announcement fails to comment on the inclusion of the enhanced “saving clause” which is identical to the following provisions in the US Croatia tax treaty.
4. Except to the extent provided in paragraph 5 of this Article, this Convention shall not affect the taxation by a Contracting State of its residents (as determined under Article 4 (Resident)) and its citizens. Notwithstanding the other provisions of this Convention, a former citizen or former long-term resident of a Contracting State may be taxed in accordance with the laws of that Contracting State.
5. The provisions of paragraph 4 of this Article shall not affect:
a) the benefits conferred by a Contracting State under paragraph 3 of Article 7 (Business Profits), paragraph 2 of Article 9 (Associated Enterprises), paragraph 7 of Article 13 (Gains), subparagraph (b) of paragraph 1, paragraphs 2, 3 and 6 of Article 17 (Pensions, Social Security, Annuities, Alimony and Child Support), paragraph 3 of Article 18 (Contributions to Pension Funds), and Articles 23 (Relief From Double Taxation), 24 (Non-Discrimination) and 25 (Mutual Agreement Procedure); and
b) the benefits conferred by a Contracting State under paragraph 1 of Article 18 (Contributions to Pension Funds), and Articles 19 (Government Service), 20 (Students and Trainees) and 27 (Members of Diplomatic Missions and Consular Posts), upon individuals who are neither citizens of, nor have been admitted for permanent residence in, that Contracting State.
This represents a significant expansion of the “saving clause” to allow the US to impose US taxation NOT only on its” residents (as determined under Article 4 (Resident)) and its citizens” but also on “a former citizen or former long-term resident” which may are permitted to be subjected to any relevant future provisions of the Internal Revenue Code.
From the perspective of Croatia, the “saving clause” found in Paragraph 4 of Article 1 means:
4. Except to the extent provided in paragraph 5 of this Article, this Treaty shall not affect the taxation by the United States of its residents (as determined under Article 4 (Resident)) and residents of Croatia who happen to be US citizens. Notwithstanding the other provisions of this Convention, a former US citizen or former long-term US Green Card holder who is a resident of Croatia may be taxed by the United States according to the Internal Revenue Code.
US Supreme Court Denies Toth FBAR Cert Petition Refusing To Decide Whether Penalties Violate ”Excessive Fines Clause” Of 8th Amendment
Four Attitudes Of Americans Abroad Toward US Citizen Tax: Ending, Ignoring, Escaping Or Improving
Why Tax Reform For Americans Abroad Is Reminiscent Of The Movie Groundhog Day
Dr. Don Young Discusses: Jordan Peterson And The Ontario College Of Psychologists of Ontario
Notice 2023-11: A Significant Escalation of FATCA Enforcement On Foreign Banks and Americans Abroad
There Are Two Kinds Of People Who Need A Second Citizenship: The Rich And The Poor
Financial Planning For Americans Abroad In Israel with Aaron Katsman
Ms. Molyneux Meets Mr. FBAR On Fifth Avenue In New York
What If You Want To Plan For Your Financial Future, But Simply Don’t Know Where To Begin?
About Loss OF Identity: What The Dodge Stratus Teaches US About Renouncing US Citizenship
Coach Coutts: Why Growing Up With A Sister Is Important PREParation For Life
Cross-posted from ”JohnAlanPod”: The American Way? U.S. Emigrants and Taxation part 2 - episode 198
The Decline Of The British Pound And Phantom Capital Gains For Americans In The UK
Update With Craig Swartz - Former Democrat Candidate For Ohio 5 - The Movement Continues
To Renounce Or Not To Renounce - What Are The Benefits Of Remaining a US Citizen?
Oral Arguments In Rost v. United States - Before United States Court of Appeals, Fifth Circuit - July 6, 2022
JohnAlanPod: Taxing Americans Who Live Overseas: UNFAIR? - ep.194 with my guests Keith Redmond and John Richardson
Supreme Court FBAR Hearing November 2, 2022: ALEXANDRU BITTNER, Petitioner, v. No. 21-1195 UNITED STATES, Respondent
The Supreme Court And Mr. FBAR - Should The Non-willful Penalty Be Limited To The Form? - Discussion with @JimmySextonLLM
Create your
podcast in
minutes
It is Free
The Tucker Carlson Show
The Glenn Beck Program
The Matt Walsh Show
Mark Levin Podcast
The Michael Knowles Show