Newsweek Delves Into FATCA and the Growing Trend in Expatriation | Let's Talk About: US Tax http://t.co/LtaBVpWFUi
— V. La Torre Jeker JD (@VLJeker) July 14, 2014
Virginia La Torre Jeker is a U.S. tax lawyer practising in the Gulf. She has shared the text of her recent interview with Newsweek. Although I highly recommend the complete interview, the following is of particular interest.
8. NEWSWEEK: Do you think more and more people will give up their US citizenship?
VLJ: Absolutely – I have them as clients and am seeing more and more of them each day. I understand that many Consulates and Embassies in Europe have waiting lines for those wishing to expatriate. Think about it – let’s say you are a Saudi Arabian national and are very happy living and working in Saudi Arabia or some other tax-free Middle Eastern country. You plan to remain in the region because this is where you grew up, your family is here and your roots are here. Perhaps you became a US citizen after studying in America over a decade or two ago. You also have ownership in the family business and plan to build it up with your siblings. The US tax laws require you to report extensive information about that foreign-owned business causing disharmony in your family (including for example, provision of profit and loss statements, as part of your US tax return); you may have to file information returns about the financial accounts owned by that business; you will be paying US tax on your world-wide income and many potential business partners may no longer wish to do business with you because you are an American. Wearing those shoes, a decision to expatriate may become more understandable