The Cost Of Brexit

[MoriartyR]

18 minutes ago, Tinjapan said:

Boy, ain’t that the truth.  

 

I have to ask, how is it that you had to file a US W8 even though you have never lived in the US nor had any connection to the US?  No matter how much I have studied the issues surrounding all this mess, there is still so much more out there to learn, which is in large part why I stopped a while back.

It became a ‘requirement’ maybe 15 years ago for any bank with a US presence to periodically obtain W8 certifications from their customers to confirm whether they should be taxed in the US. In theory these banks would have to close your account or deduct US taxes on your income if you didn’t comply. It was breathtaking regulatory overreach.

 

In reality (and luckily I knew this because I worked at the time in Hong Kong for a global American banking group) the rules were never well defined and all the banks had to negotiate a practical solution - usually to only enforce this if the customer was American or at least foreign - but different banks had different attitudes to what was compliant enough and this changed over time too. Where I worked we would request it from the customer twice and then give up, which was judged to be ok.

 

So I learned I could just call my bank, remind them I’m not American, and tell them I’m too busy for this and they either drop it or I will close my account. But most customers wouldn’t even know that this W8 form was only a US requirement, let alone that they could argue or refuse, so it was a pain for everyone and a lot of extra admin for the banks. Most banks have at least some presence in the US.

 

[Tinjapan]

46 minutes ago, MoriartyR said:

It became a ‘requirement’ maybe 15 years ago for any bank with a US presence to periodically obtain W8 certifications from their customers to confirm whether they should be taxed in the US. In theory these banks would have to close your account or deduct US taxes on your income if you didn’t comply. It was breathtaking regulatory overreach.

 

In reality (and luckily I knew this because I worked at the time in Hong Kong for a global American banking group) the rules were never well defined and all the banks had to negotiate a practical solution - usually to only enforce this if the customer was American or at least foreign - but different banks had different attitudes to what was compliant enough and this changed over time too. Where I worked we would request it from the customer twice and then give up, which was judged to be ok.

 

So I learned I could just call my bank, remind them I’m not American, and tell them I’m too busy for this and they either drop it or I will close my account. But most customers wouldn’t even know that this W8 form was only a US requirement, let alone that they could argue or refuse, so it was a pain for everyone and a lot of extra admin for the banks. Most banks have at least some presence in the US.

 

Ah.  Thanks.  A British friend of mine here in Japan had to certify his connections or lack thereof with the US several years back, shortly after I learned of FBAR and FATCA.  He was doubtful of my horror stories until then.  

Yes, breathtaking, heart stopping regulatory overreach.  And most still do not know of it.

[RJS]

3 hours ago, Tinjapan said:

I have never gotten a refund from them on anything I bough through the GSP.  

 

That sounds about right, sadly.

[RJS]

2 hours ago, Tinjapan said:

Ah.  Thanks.  A British friend of mine here in Japan had to certify his connections or lack thereof with the US several years back, shortly after I learned of FBAR and FATCA.  He was doubtful of my horror stories until then.  

Yes, breathtaking, heart stopping regulatory overreach.  And most still do not know of it.

My New Zealand bank recently insisted I fill out a worldwide earnings form, to ensure I was paying my worldwide taxes, despite how I haven't deposited anything in that account for many years. They said it was a legal requirement. 🤷🏼‍♂️

[RJS]

3 hours ago, Tinjapan said:

Sadly for the Captain, the Captain is always responsible, even when the pilot wreaks his ship.

That's a pity. It would be simpler too if boats were registered where they should be rather than with tax havens...

[Tinjapan]

10 hours ago, RJS said:

My New Zealand bank recently insisted I fill out a worldwide earnings form, to ensure I was paying my worldwide taxes, despite how I haven't deposited anything in that account for many years. They said it was a legal requirement. 🤷🏼‍♂️

Are you living in New Zealand?  If so, that is very different than what the US is doing.  I live in Japan and have for over 20 years.  The US, a country I have not even visited in over ten years requires me to file income taxes on income earned in Japan, where I live.  The US requires my Japanese citizen children to do the same.  The US is the only country that does this, however, more are likely to follow suit.  

[Tinjapan]

10 hours ago, RJS said:

That's a pity. It would be simpler too if boats were registered where they should be rather than with tax havens...

Tax is a consideration but at least in the case of US owned nonUS flagged vessels it has more to do with labor and safety laws/regulations.