MD Physician Services Funds (Canada) on FATCA

Interesting page of at MD Physician Services Funds on their compliance with FATCA. Indicate “current” position is to comply given the devastating financial consequences of not doing so however, they admit to significant client pushback on the issue. Currently discussing the issue through Tony Clement (head of Treasury Board). Given the somewhat cooperative nature of the organization they may very well be in “play”.

http://mdm.ca/news/2012/fatca.asp

http://mdm.ca/news/2012/pre-budget-consultation.asp

Further info: MD Physician services is actually controlled by the Canadian Medical Association which is on record as opposing FATCA although for now their financial services subsidiary says they are going to comply. I personal think they should have a vote at their annual meeting.

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One thought on “MD Physician Services Funds (Canada) on FATCA

  1. Sorry wrong thread, I’m not sure how to post a new article – in Isreal they claim IRS audits have increased because people have been understating their Isreali income in order to max out their $1000 US child tax credit.

    If some enterprising families have taken the IRS for a ride for $2000 or $3000 for simply filling in a piece of paper – fair play to them.

    The joke is the US would’ve received no tax revenue anyways from these families if they didn’t have citizenship-based taxation, but instead the US turns these cases into a $2000 or $3000 refund. I’m sure the happy families can find a better use with their 18,000 odd Isreali shekels than the US government.

    So Levin and Grassley put that in your pipe and smoke it – your insistence to using citizenship-based taxation has actually cost the US government money! Why don’t you tell your voters back home that those evil deadbeat ex-pat tax evaders are avoiding not only their US taxes, but the US government is actually sending tax refunds overseas to help subsidise their lifestyles on Isreali beaches sipping pina coladas!

    Tell your voters that over 90% of overseas tax returns result in zero tax revenue for the US government. In addition the IRS has left itself open to fraud internationally similar to the domestic tax refund fraud that is currently being investigated. The IRS is in the unique situation of not only combatting domestic fraud, but potential fraud from their “international” taxpayers as well.

    Now I’m not sure exactly how they’ve achieved this scam, but if you have to have some income say $10,000 as taxable wages from the US, you would qualify for $1000. However because the US does not have automatic reporting from the Isreali tax authorities on wages, the IRS has to take your worldwide income at face value to determine how much your child tax credit should be – this is probably the loophole the con artists have exploited. The child tax credit starts to taper off when a couple makes over $110,000 – of course these couples never have more than $110,000 income to max out the tax credit. I’m not sure at what level the tax credit is fully withdrawn, but I’d imagine it wouldn’t be much beyond the $110,000 limit. The Americans are stingy when it comes to benefits from the state.

    If you’re really interested do the what ifs on HR Blocks tax calculator to get a rough idea or indeed take advantage of the child tax credit if you so wish.

    What makes matters worse is the IRS has limited means to claw back the fraudulent tax refund other than threatening letters etc – it’s a murky old business at best.

    Live by citizenship based taxaition, pay by citizenship based taxation!

    see link – http://www.haaretz.com/weekend/anglo-file/irs-ramps-up-audits-of-taxpayers-in-israel-1.426788?localLinksEnabled=false

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