ExpatriationLaw – X Spaces Lives Discussions – Ending Double Taxation Of Americans Abroad
ExpatriationLaw - X Spaces Lives Discussions - Ending Double Taxation Of Americans Abroad
Podcast Description
In 2024 President (then candidate) Trump pledged to end the "double taxation" of Americans abroad. This was welcome news to the community of overseas Americans. The Trump pledge was largely the result of work done by Republicans Overseas and the Republicans Overseas tax committee.
2024 was also a year of other groups and individuals "coming together" in an organized way to end the unfair taxation of Americans abroad.
I (John Richardson) started a series of live "X Spaces" discussions for the purpose of discussion of the taxation of the U.S. citizenship tax system - inflicted on Overseas Americans. The purpose of the discussions is to gain understanding and achieve agreement on the most important aspects of the problems. Where is there agreement? Generally, (regardless of specific differences) overseas Americans are united around the goal that Overseas Americans should be treated the same as nonresident aliens for the purpose of U.S. income taxation.
I am reposting the "X Discussions" here so that there is a record of what was said, by whom and why.
expatriationlaw.substack.com
Podcast Insights
Content Themes
The show emphasizes the inequities of the U.S. citizenship tax system impacting expatriates, including episodes addressing double taxation, FATCA reporting, and various reform proposals like the FAIR Tax and residency-based taxation. Specific discussions have included the implications of the Edelman case, the costs associated with ending citizenship taxation, and the challenges presented by IRS practices.
In 2024 President (then candidate) Trump pledged to end the “double taxation” of Americans abroad. This was welcome news to the community of overseas Americans. The Trump pledge was largely the result of work done by Republicans Overseas and the Republicans Overseas tax committee.
2024 was also a year of other groups and individuals “coming together” in an organized way to end the unfair taxation of Americans abroad.
I (John Richardson) started a series of live “X Spaces” discussions for the purpose of discussion of the taxation of the U.S. citizenship tax system – inflicted on Overseas Americans. The purpose of the discussions is to gain understanding and achieve agreement on the most important aspects of the problems. Where is there agreement? Generally, (regardless of specific differences) overseas Americans are united around the goal that Overseas Americans should be treated the same as nonresident aliens for the purpose of U.S. income taxation.
I am reposting the “X Discussions” here so that there is a record of what was said, by whom and why.
This AI generated podcast is based on a paper written by Professor Leopoldo Parada. Although a “saving clause” has been a feature of U.S. tax treaties for years, the OECD Model Treaty did not have a “saving clause” before 2017. Interestingly, the OECD commentary suggests that the purpose of the “saving clause” was to allow for the taxation of controlled foreign corporations. The U.S. treaties exploit their version of he “saving clause” as a mechanism to employ U.S. citizenship taxation. The abstract of Dr. Parada’s paper includes:
“The ‘OECD Saving Clause’: An American-Tailored Provision Made to Measure the World
Rivista di Diritto Finanziario e Scienza delle Finanze, LXXVIII 1, I, 13-52 (2019)
41 Pages Posted: 18 Jul 2019
King’s College London
Date Written: July 1, 2019
Abstract
This article argues that the “saving clause” provision introduced in the 2017 OECD Model conflicts with the entitlement to double taxation relief under Article 23 OECD Model, especially in cases involving the use of hybrid entities. Although this issue is pragmatically solved in the new paragraph 11.1 of the commentaries on Articles 23A and 23B OECD Model, which provides no obligation for the Contracting States to relieve double taxation to the extent that taxation is based exclusively on the residence of the taxpayer, it leaves the taxpayer in the residence state with a potential permanent double taxation status. The foregoing may be however avoided with an optional “reverse saving clause”. Such an option seems to be not only more coherent with the traditional object and purpose of tax treaties (double taxation relief), but it also reflects the tax treaty practice already in force in some countries around the world.”
The AI generated description of the paper (upon which the podcast is based) includes:
“The OECD Saving Clause: An American-Tailored Provision
1 source
This text provides an in-depth analysis of the “saving clause” in the 2017 OECD Model Tax Convention, comparing it to the United States’ version. The author argues that the OECD’s saving clause conflicts with double taxation relief, especially when dealing with hybrid entities. While the OECD commentaries offer a pragmatic solution, it can lead to permanent double taxation for taxpayers. The article proposes an optional “reverse saving clause” as a more coherent and equitable solution, aligning with the traditional purpose of tax treaties: avoiding double taxation.”
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