Oslo Hotel Faces Backlash Over Cuba Ban

The pinnacle of US arrogance. All we need now is an international boycott of Hilton Hotels, also in Canada.

The same thing happened (?again with Hilton?) in Mexico.

Consider that all Cdn gov databases are open to US investigators. Most data storage providers are US owned subsidiaries (Iron Mountain, IBM, etc.) Under US law, these subsidiaries are obliged to hand over data in their possession.

So...Bush likely knows your tax return information.

I know for a fact that IBM will not hand over customer data to anyone. There are very strict policies regarding this, the first of which is Customer Data never leaves the Customer's site. IBM cannot 'hand over' what it does not have.

Iron Mountain cannot, as most data they recieve is sealed, and encrypted.


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"I think it's important to always carry enough technology to restart civilization, should it be necessary." Mark Tilden

Once again the Americans feel their rules apply to the world. If a sole American stands in any country, the rules apply to that country. Norway's government should be contacting foreign companies in their country and advising them that the laws of Norway are the only laws. It's unfortunte that in Canada, we have a government that feels the laws of foreign countries apply to foreign investors. They can bring their country's laws to Canada and apply them to Canadians.

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Expect little from life and get more from it.

My wife and I live temporarily in the US with a TN Visa (and TD Visa) under NAFTA. We hold units in various Canadian Mutual Funds designated in US$ - outside our RRSP’s which are also in Canadian Mutual Funds. Last week, we organized with our Agent in Canada to redeem some of the units. Our financial advisor yesterday sent us this letter:

“(The Mutual Fund Company) has completed the redemption to send you the cheque for the $4,000.00 USD. Unfortunately, due to new regulations, not sure whether they are coming from the US or Canada, if the Mutual Fund company redeeming the funds has a parent company in the US then the clients need to complete and sign a W8 form to avoid paying withholding tax on the redemption. I am quite angry with (the Mutual Fund Company) at the moment because I had called and asked specifically about the status of withholding tax on a redemption from your account and was told that there would be none. They have made a few excuses but we are obliged to follow through with (the Mutual Fund Company) on this transaction since the funds have already been redeemed.

I have completed the one page forms as best I can with your address and names. They require your Social Security Numbers as well as a photocopy of some kind of government ID such as your (US state) drivers license. There is a form for each of you so if you could print these out, sign them and fax them back to us along with a photocopy or your drivers licenses I will fax this directly to the person responsible at (the Mutual Fund Company) and he will send off the cheque. Sorry for the confusion on this.

Occasionally we run into this from the Fund companies when we have an unusual question for them.”

to which I responded last night:

Dear (Agent),

You may remember that I wrote a very strong letter to (someone at Canadian Mutual Fund Company A’s Transfer Agent) about fifteen months ago. That company was taken over by a US company and they then tried to impose US income tax rules on us, who are clients of (Canadian Mutual Fund Company A) and therefore of the US subsidiary of the US company in Canada. They stated in their letter accompanying the IRS Form W-9 that they sent us: “Once (the Canadian Transfer Agent) is part of (the US company), it must comply with the U.S. information reporting and backup withholding rules.” I think we sent you copies of the e-mails at that time.

We believed that this practice was improper and immoral, and not backed up by any rules between Canada and the US. That specific situation last year dealt with our mutual fund holdings in (Canadian Mutual Fund A denominated in US$) and there was not even a withdrawal at the time. This case with our mutual fund holdings in (Canadian Mutual Fund B denominated in US$) is therefore a bit different. Note that the Manager for (Canadian Mutual Fund B) did not contact us a year and a half ago.

(My wife) and I were at that time vociferously opposed to completing the W-9 form that (the Transfer Agent for Canadian Mutual Fund Company A) sent us in the mail (not even through you, our Agent), and we were able to make them back off eventually from their unwarranted demand, which was provided with profuse apologies. This time we reiterate those strong objections on completing the W-8BEN forms that the Manager (or Transfer Agent) for (Canadian Mutual Fund Company B) sent through you.

The following is the gist of our reason: They should read the form, and not make unfounded and untrue assumptions about our resident status. This IRS form W-8BEN specifically states right at the top: “Do not use this form for · A US citizen or other US person, including a resident alien individual.” By golly, the Manager for (Canadian Mutual Fund Company B) does not even know which form to send!!! Before we do anything else, we would therefore like you to advise the Manager for (Canadian Mutual Fund Company B) (and you have our permission to do this by forwarding this e-mail) that they sent the wrong form.

You, (Agent’s name), have the right to be quite angry as well (as you state in your e-mail), because they misled you and they made assumptions about our income tax status without even asking us what it is. Let me explain as I did to the other Transfer Agent for (Canadian Mutual Fund A) last year: We are (as it is called) “in NAFTA space”, we are Canadians temporarily living in the US under a one-year TN work visa (TN for Treaty National) which is not a visa that leads to a Green Card or any type of permanent residence. I am and remain a “Canadian business person” and the North American Free Trade Agreement between Canada, Mexico and the United States of America (as well as regulations in the three countries, which means the Code of Federal Regulations (CFR for short) in the USA clearly state that. (My wife) is and remains the dependant of a Canadian business person as she holds a TD Visa (D for Dependant). We are definitely not immigrants or holders of US residence visa; the TN and TD Visa are classified as working visa only. For the five years that we have been here, we have always declared the income from our Canadian US$ denominated mutual fund holdings with our US and (State) Income Tax. And we intend to do that as well this year if there are any income tax implications with the redemption of this Canadian asset in US$. But definitely not with a form sent to us by a Canadian company that requires our US Social Security Number for the simple reason that it (the company) is a subsidiary of a US company. We are law-abiding citizens of Canada and law-abiding aliens (as stated: in NAFTA space) in the USA, even without the form requested.

Now don’t let the Manager of (Canadian Mutual Fund Company B) (which I guess is a subsidiary of a US company) off the hook by just acknowledging their mistake and sending you W-8 forms to send to us to fill in instead. That won’t do either - that would be identical to (last year’s) situation of last year which was already resolved in our favour (by them backing off). We believe we are at the least first entitled to receive a copy of the complete rules that compel us as Canadian citizens living temporarily outside Canada, to pay US income tax on the sale of a Canadian asset for paying a Canadian obligation which is a Canadian insurance policy premium. And we would also like to receive a statement from the Canadian Investment Funds organization (the true name or acronym escapes me but you know who I mean) to state that yes, this is the true (new) situation and these are the (new) CANADIAN REGULATIONS.

Strange that they did not advise you (as an Agent) of these “new rules” beforehand. We also hereby give you specific permission to take this matter up with the highest rulemaking body of that organization of which you are a member. I repeat: Until (my wife) and I have read that the Canadian organization approves of this “blackmail” by a Canadian company that is a subsidiary of a US company, we will not sign what we consider at this stage “illegal papers” for Uncle Sam. The onus is clearly on (Canadian Mutual Fund Company B) to prove otherwise.

The US has for too long imposed its ways on subsidiaries of US companies operating in other countries, including Canada. May I refer you to the situation in Oslo, Norway, last weekend at a hotel that was recently bought by Hilton Hotels? A group of Cuban diplomats attended an international conference in Oslo, and were bluntly told that they could no longer (as they had in previous years) stay at that hotel, for the simple reason that Hilton Hotels “must comply with US regulations” (which mean boycotting Cuba). You may have read about it in the media: Guess what? There was a strike by a few hundred thousand Norwegians, and for all I know Hilton Hotels will be charged with a heavy fine for this illegal activity that clearly violates all Norwegian rules. Something similar happened recently in Mexico, I forget the amount of the fine.

In this case, Canadian sovereignty is at stake, and for much more than meets the eye. Our mutual fund holdings in Canada remain Canadian assets!!!!

Additionally, you may also tell the Manager of (Canadian Mutual Fund Company B) that (my wife) and I own a residential property in Canada, and would they please change the address on our account directly to (that address). Once that is done, I guess this new stupid rule (if it ever exists, which I doubt) would not apply. You have our permission to do that change of address right now, and also for any of the other mutual fund holdings in companies that try to run around Canadian sovereignty with this “dirty trick”.

And you may tell the Manager of (Canadian Mutual Fund Company) that we fully intend to return to Canada some time this year (2007). This means that whatever form he wants (warranted or not), would seem to be completely irrelevant by the end of the year, because we will then be once again taxable in Canada and not in the USA.

Tomorrow morning, I hope to send a copy of this e-mail to (my Canadian Member of Parliament) just for information. Maybe he will be able to investigate at that level. You may submit this as a formal complaint as well (as noted above) not at all against you, but in support of your view. Silly illegal rules make your good advice useless and all your efforts in vain.

But as you state at the bottom, “the funds have already been redeemed”, so it is obvious the Manager for (Canadian Mutual Fund Company B) is actually too late with this request. And of course, as you stated, “they promised”. Just tell them to drop dead, jump in the lake or something similar.

And if for one or other unforeseen reason the policy premium for which this redemption of our Canadian mutual fund holdings is needed, will be received (too) late at the Insurance Company, that would be the fault of the Manager of (Canadian Mutual Fund Company B), and we would hold them accountable and responsible. Maybe you can request that in light of the above “tirade”, (hey, I even acknowledge that) they not withhold the US$ 4,000 cheque (which should have been on the plane to (my residence) already tonight). The banking system in the US is quite slow and primitive, compared to Canada; we now have no assurance that the policy premium will be received by their deadline. And maybe you can advise the insurance company as well that there may be an unforeseen (!!!) delay.

You may realize, (Agent’s name), that I am somewhat fuming as I complete this e-mail. Maybe I should also tomorrow lodge a formal complaint with the Canadian Consul here in (my city of residence): For harassment of Canadian citizens by Canadian companies that are subsidiaries of US companies.

Update: The Mutual Fund Company did not back down, nor did I. The redemption was reversed and my financial advisor ( also frustrated) suggested that I rather redeem units in one of my other funds, in the real Canadian AIC stable, from which company there would be no fuss. Now I am waiting for responses from my MP and from a few business newspaper commentators. I believe this needs some action.

I think this event would have had a different ending if it had happened in Norway.