Surprise, surprise!
There may be one topic upon which all Members of Parliament in all political parties can agree – i.e., the United States should not try to enforce its tax laws against law-abiding Canadians!
Over recent weeks, a number of Canadians and long-time residents have been threatened by the US Internal Revenue Service (IRS), demanding payment of past-taxes which the American authorities claim are owing.
The people receiving these threats are often former US citizens or dual citizens or the children of former American citizens. They had no idea they might have a tax obligation in the United States. They have abided by all relevant Canadian laws and naturally assumed that was both sufficient and appropriate.
After all, Canada is not some illicit tax haven. We don’t condone or encourage improper evasion schemes. Our own domestic tax laws are enforced effectively. And we have elaborate treaties with other countries, including the United States, on taxation issues.
Maybe it’s because the US is in such bad economic shape that it’s trying to grab every nickel of offshore revenue it can find. Partisan gridlock makes it difficult for the Americans to adopt sensible tax policy domestically, so they seem to be groping for money outside their borders to ease their horrendous deficits.
But the Americans go way too far when they start harassing Canadians, even to the point of asking Canadian banks to seize assets like RRSPs to compensate the US for the alleged tax liabilities of certain customers.
MPs from all parties (including me) have raised this issue in Parliament. We all agree the US-IRS is extremely off-base!
The government says it has protested to Washington. But more needs to be done.
Our government must stand shoulder-to-shoulder with innocent citizens and taxpayers – to inform and assist them in fending-off abusive American tax enforcement proceedings.
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