More and more Americans renounce their passports

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usa-passportAlmost 9,000 Americans living overseas gave up their passports over the past five years. This data came up after asset-disclosure rules had started. According to the Federal Register data, 1,577 people gave up their nationality at U.S. embassies in the six months through June 2014 only. Tougher asset-disclosure rules became effective under the Foreign Account Tax Compliance Act, or FATCA. This happened after 100 Swiss banks had turned over data on American clients to avoid prosecution for helping tax evaders. ‘FATCA and the Swiss bank disclosure program has intensified the search for U.S. nationals beyond all measure,’ said a U.S. tax lawyer at Anaford AG in Zurich Matthew Ledvina. ‘It’s shocking the levels of due diligence they are going through to ensure they have cleaned house.’ Swiss banks are searching through records going back to the 1990s to find clients with U.S. addresses and telephone numbers, and those who received schooling in the country, Ledvina said. Those identified as U.S. persons are either being asked to leave or placed in special U.S.-only sections of the institution, he added. It should be noted that the USA is the only nation that taxes citizens wherever they reside.