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#TLTaxCon19 Spotlight: Meet John Richardson

John Richardson

John Richardson will be one of the speakers at Taxlinked’s Beyond Borders conference, which will take place in Barcelona on October 13-16, 2019. Book you early bird ticket HERE before they run out!

Taxlinked (TL): How did you get into your practice field?

John Richardson (JR): In 2010, the United States enacted FATCA, which was basically an enforcement tool for US citizenship-based taxation.  I had a legal background in the law of US citizenship and a strong academic background in tax. For this reason, I began practising at the intersection of tax and nationality/immigration law. My focus is to assist "US persons living outside the United States" who are forced to deal with the extra-territorial application of FATCA and other US laws.

TL: What do you consider your greatest professional achievement so far?

JR: Although I have effectively helped hundreds of US citizens and Green card holders, I believe my greatest achievement has been educating people who live outside the United States about the dangers of US citizenship-based taxation. What the United States calls "citizenship-based taxation" is actually the imposition of US worldwide taxation, according to US tax rules, on tax residents of other countries, who do NOT live in the United States. The impact of these laws has been life altering for many. It has forced them to renounce US citizenship. It has resulted in significant erosion of pensions earned in other countries. I have written hundreds of blog posts and conducted live seminars on this issue in many parts of the world.

TL: The US as a global tax haven is a hot topic. Is there anything in particular about this topic that interests you?

JR: On the one hand, the United States via FATCA requires other countries to transfer information about their citizens and residents to the United States.

But, on the other hand, the United States has not signed onto the CRS and does not provide reciprocal information exchange under FATCA.

The United States allows “nonresident alien” individuals to park their money in the United States without disclosing this to the countries where those individuals are tax resident.

But privacy is not enough. The United States also provides a favorable tax environment, which attracts foreign capital to the United States.

A combination of: (1) we won't tell your country of residence if you park your money in the USA, and; (2) we will provide a favorable environment if you do park your money in the USA, means that the United States has created the world's best tax haven.

But those same individuals should look out if they die with certain assets parked in the USA. They could be subject to confiscatory estate taxes if they don't remove those assets before they die.

TL: Are there any questions you would like to ask your fellow conference attendees during the event in Barcelona?

JR: I am really looking forward to the Barcelona conference. As changes go in society, so go changes in taxation. In fact, a tax professional should be viewed as sort of a “practical sociologist.” In the 21st century, there is tremendous inequality in wealth, leading to a concern that the rich and corporations are not paying their “fair share.” As a result, the 21st century has been characterized by information exchange, a heightened interest in tax residency, a move toward the rethinking of tax residency, and new definitions of income (usually “fake income”).  In one way or another, all of these topics will be addressed at the Barcelona conference.

TL: What specific issues regarding taxation and the digital economy are you planning on discussing during the live event? Are there any particular aspects you are hoping to analyse further?

JR: The digital economy has forced a rethinking of how corporations should be taxed, information exchanged, and what tax treaties should allow. For example, should a company with no permanent establishment be subject to taxation by a country where it makes its sales? How do CFC rules and the digital economy interact? What exactly is source income? Should a tax (like the new French tax) on revenue be permissible? Does it make economic sense?

TL: Are there any other hot topics you would like Taxlinked to address in a future conference?

JR: Well, I would expect Taxlinked to address all the hot topics of the day. Taxlinked does an excellent job of analyzing the rule of taxation internationally. This is very different from analyzing how specific countries (for example, the USA) approach international tax.

TL: Tell us an interesting fact about yourself – it could be anything you want to share with the community!

JR: I would like to cycle across Canada starting in the east and cycling to the west.

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