Friday, November 14, 2014

US Expatriation Continues to Increase At a Record Pace in 2014!

We previously posted US Expatriation Increase At a Record Pace in 2014!  where we discussed that the number of Americans renouncing U.S. citizenship stayed near an all-time high in the first half of the year before rules that make it harder to hide assets from tax authorities came into force (FATCA - Effective Date July 1, 2014). 

Each quarter the U.S. Treasury publishes the names of the Americans who officially expatriated during that period.

People giving up their nationality at U.S. embassies increased to 777 in the third quarter, from 560 in the year-earlier period, according to Federal Register data published yesterday.

Tougher asset-disclosure rules that started July 1 under the Foreign Account Tax Compliance Act, or FATCA, prompted more of the estimated 6 million Americans living overseas to give up their passports. The appeal of U.S. citizenship for expatriates faded further as more than 100 Swiss banks began to turn over data on American clients to avoid prosecution for helping tax evaders.

The U.S., the only Organization for Economic Cooperation and Development nation that taxes citizens wherever they reside, stepped up the search for tax dodgers after UBS AG paid a $780 million penalty in 2009 and handed over data on about 4,700 accounts. Shunned by Swiss and German banks and with FATCA starting, more than 9,000 Americans living overseas gave up their passports over the past five years.

FATCA requires U.S. financial institutions to impose a 30 percent withholding tax on payments made to foreign banks that don’t agree to identify and provide information on U.S. account holders. It allows the U.S. to scoop up data from more than 77,000 institutions and 80 governments about its citizens’ overseas financial activities.

In establishing the 2010 FATCA law, Congress and President Barack Obama in effect threatened to cut off banks and other companies from easy access to the U.S. market if they didn’t pass along such information. It was projected to generate $8.7 billion over 10 years, according to the congressional Joint Committee on Taxation.

So far, 2,353 Americans have renounced their citizenship 
this year, close to the all-time high of 2,369 
in the first nine months of 2013.

If this current trend continues,  it would result in  3,154 people expatriating into 2014, which would be a 105%  increase over the 2,999 people who expatriated in 2013. The 2013 amount of 2,999 represented a 221% increase over the 932 total in 2012 and “shatters” the previous record of 1,781 set in 2011.

"Should I Stay or Should I Go"?

Need Advise on Expatriation ...

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