The US Experiences a Dramatic increase in Citizenship Renunciation during 2011.
May 1, 2012
According to Internal Revenue Service (IRS) figures, at least 1,800 Americans renounced their USA citizenship in 2011, an all-time record at eight times the 2008 number.
The USA's worldwide taxation system, including the Foreign Bank and Financial Accounts (FBAR) and now the Foreign Accounts Tax Compliance Act (FATCA) regimes, is to blame, according to lobby group American Citizens Abroad.
The State Department said records it keeps differ from those published by the IRS. They indicate that renunciations have remained steady, at about 1,100 each year, said an official.
The decision by the IRS to publish the names is referred to by lawyers as 'name and shame.' That's because those who renounce are seen as willing to give up their citizenship primarily for financial reasons.
There's also an 'exit tax' for the very rich who choose to leave. During the last 25 years, a number of millionaires and billionaires have renounced their citizenship. Among them: Ted Arison, the late founder of Carnival Cruises, and Michael Dingman, a former Ford Motor Co. director.
Read more at: Tax Times blog
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