Posted by roy on May 9, 2015, 6:48 am, in reply to "Re: Tina Turner is no longer an American citizen"
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Daniel - My email address was included with the previous post (as it is with this post). I am not sure why it is not showing up.
The idea of an "exit" tax is not unique to the US.
When I became a US resident in 2012, I remained a Canadian citizen and would have to file a tax return in both countries as long as I retained assets in Canada (even if I was not living in Canada and even if I could no longer receive the benefits of the almost free health care). Since the personal tax rates in Canada are almost double those in America, I became a Canadian non-resident and am no longer required to file a Canadian tax return.
However, to get non-resident status, I had to sell all assets at fair market value on my date of departure for the US and any gains were taxed on my final return to the CRA. And those assets I held in the US at that departure date were "deemed" sold and the gains on the deemed disposition were also taxed.
Depending on the magnitude of the gains, the Canadian "exit" tax can be significant.
While FACTA may be a US law, I believe equivalent laws are in place in most democracies on the planet.
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