Americans urged to seek advice before ditching citizenship
US expats seeking to avoid the impact of the Foreign Account Tax Compliance Act (FATCA) should seek specialist financial advice before taking the decision to renounce their citizenship, an expert says.
deVere Group chief executive, Nigel Green, said record numbers of US citizens have cut their ties with America as a result of the burden of FATCA, but said there were other ways to limit the impact of the legislation.
"Don't feel forced by Uncle Sam to give up your citizenship until all the options have been fully explored," he said.
"I would urge anyone who is considering giving up their US passports for financial reasons and without wanting to, to seek specialist advice.
"The US authorities are taking this project very seriously and Americans must ensure that they are FATCA-compliant.
"However, there are several well-established, bona fide, compliant ways that US expats can mitigate the often unbearable burden of FATCA.
"These include an additional overseas pension contract that's specifically designed for US taxpayers with assets in their country of residence."
AUTHOR
Nicholas O'Donoghue
Recommended for you
The central bank has released its decision on the official cash rate following its November monetary policy meeting.
ASIC has cancelled the AFSL of a Melbourne-based managed investment scheme operator over a failure to pay industry levies and meet its statutory audit and financial reporting lodgement obligations.
Melbourne advice firm Hewison Private Wealth has marked four decades of service after making its start in 1985 as a “truly independent advice business” in a largely product-led market.
HLB Mann Judd Perth has announced its acquisition of a WA business advisory firm, growing its presence in the region, along with 10 appointments across the firm’s national network.
