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.
When ”Beneficial Ownership” Constitutes A Financial Interest And Triggers An FBAR Requirement
@MiAzhikwan - The Importance Of Love - The First Lesson
@MiAzhikwan - Choosing Forgiveness - The Eighth Lesson
When It’s All Said And Done (And It’s Done): ”All Roads Lead To Renunciation”
For Good And Evil: The Teaching Of Charles Adams Lesson 17
For Good And Evil: The Teaching Of Charles Adams Lesson 16
Jim Bennett Of Fair Tax: Taxation, Fairness And Fairness In Taxation Both At Home And Abroad
Request To Contribute To The Book Of: ”Letters Of Americans Abroad To Their Congressmen”
Treating Plantar Fasciitis And Treating FATCA Both Require Focusing On The Original Source Of The Pain
For Good And Evil: The Teaching Of Charles Adams Lesson13
For Good And Evil: The Teaching Of Charles Adams Lesson 25 - Taxation And A Good Society
Seeking Plaintiffs For A Lawsuit With.Citizenship Taxation - With Marc Zell
Coutts At 37: So, You Want To Be A Personal Trainer
For Good And Evil: The Teaching Of Charles Adams Lesson 24 - Taxation And Democracy
Yes, France Has Considered Adopting Citizenship Taxation - A Discussion Of Its Report
For Good And Evil: The Teaching Of Charles Adams Lesson 23
Dual Citizens At Birth: Is A Certificate Of Loss Of Nationality Really Required To Lose U.S. Citizenship For #FATCA Purposes?
For Good And Evil: The Teaching Of Charles Adams Lesson12
In 1978 The US Had A Law Promoting Fair And Equitable Treatment For Americans Abroad
How The U.S. Tax System Has Turned U.S. Citizenship Into A Global Disability
Create your
podcast in
minutes
It is Free
The Tucker Carlson Show
The Matt Walsh Show
The Glenn Beck Program
Mark Levin Podcast
The Michael Knowles Show