The Globe and Mail is Canada’s largest circulation national newspaper.
The citizen renunciation meeting at the US consulate was described as reflecting a tide of outrage among many of the roughly one million Canadian-American citizens in Canada, who are aggrieved over a recent and harsh crackdown by US tax authorities over non-filing of tax forms and failure to file FBARs (Foreign Bank Account Reports).
Life has also become harder for such expats since foreign financial institutions have begun to shed their American clients ahead of the 2013 introduction of new US legislation, the Foreign Accounts Tax Compliance Act, which obliges banks and others with US clients to report to the IRS on them, or face penalties.
The Globe and Mail article quoted a US consulate official in Toronto as saying no further un-citizenship meetings are currently planned, but that “more could take place, depending on demand across the country”.
Last year, some 1,534 Americans renounced their U.S. citizenship – more than twice as many as in 2009 and a sevenfold increase from 2008, the Globe and Mail reported. Waiting lists of more than a year to renounce are reported to be a problem at some American embassies and consulates around the world.
According to the Globe and Mail, even though Canada is home to more US expats than anywhere else in the world, it normally sees fewer than 100 renunciations a year.
As reported, Canada’s finance minister last month criticised the US for its aggressive pursuit of Canadians with US/Canadian dual citizenships, in a letter sent to several major US publications.
In his letter, finance minister Jim Flaherty said: “put frankly, Canada is not a tax haven. People do not flock to Canada to avoid paying taxes.”
For his part, IRS commissioner Doug Shulman has consistently vowed, as he put it in a speech last year, to "tirelessly pursue anyone who tries to use international borders to their advantage and cheat honest taxpayers".
"As I’ve said throughout my tenure as commissioner, combating international tax evasion will continue to be a top priority."
