A source had told us that such an action carried no tax implications, indicating that a citizenship “renunciation” would have had some.
Actually, Washington tax law expert Michael Pfeifer of Caplin & Drysdale writes to say that, under current law enacted in 2008, the tax consequences would be almost surely identical either way. There would, however, be various “exit taxes” that could be due, he noted.
And the consequences, at least for some U.S. citizens, apparently could be very good. In fact, this year there have been a record number of expatriations, the Wall Street Journal and CNBC report, citing a recent U.S. “tax crackdown on offshore assets” held by citizens as a motivating factor. So far this year, 2,369 citizens and green card holders have expatriated, easily eclipsing the record high of 1,781 for all of 2011.
On the other hand, we shouldn’t conclude that Turner’s move came for tax reasons. She became a Swiss national in April and, according to an Oct. 24 U.S. Embassy “activity report,” has declared that she no longer has any strong ties to the United States and “has no plans to reside” here in the future.
After all, it was Barrett Strong, not Turner, who recorded the 1959 hit “Money (That’s What I Want).”
Turner recorded “What’s Love Got To Do With It?”
Well, maybe a lot.