The ghost of the US “green card” is back and again haunting President Ma Ying-jeou (馬英九). The controversy began six years ago in the run-up to the 2008 presidential election when then-Chinese Nationalist Party (KMT) presidential candidate Ma was accused of possessing US permanent residency.
The Chinese-language Next Magazine on Wednesday reported that information provided by the US’ Internal Revenue Service’s (IRS) Beijing office suggested Ma is obligated to pay taxes in the US under the Foreign Account Tax Compliance Act because he still holds a green card.
The news sent a shockwave through the nation, with the opposition rushing to issue its sternest condemnations ever against Ma — ranging from branding him “an extraordinary shame and humiliation” and “international joke” to calling for immediate resignation.
Via a Presidential Office spokesperson, Ma has denied the accusation, reiterating that his green card expired long ago. The Presidential Office yesterday produced a letter, dated May 14 and signed by managing director of the Washington office of the American Institute in Taiwan (AIT) Joseph Donovan Jr, dismissing allegations that Ma still has permanent US resident status, and adding that Ma will not rule out taking legal action against the magazine.
Taiwanese care whether Ma, the head of state and the elected president of the Republic of China, still possesses permanent US residency and needs to pay taxes to the US government.
The Next Magazine report warrants further verification. That this issue has again risen to the surface is an embarrassment to the country, nevermind Ma, considering that in less than a week he will mark his sixth year as president, a position that epitomizes Taiwanese independence and sovereignty.
Despite the AIT letter that seemed to refute the green card allegations, a number of unanswered questions remain. For instance, did Ma complete Form I-407 (Abandonment of Lawful Permanent Resident Status), which is an obligation for green card holders wishing to relinquish permanent residency? If he did, when did he file it? If Ma did fill out an I-407, does it mean Ma was lying six years ago when he said his green card had been “automatically invalidated” in 1985 when he applied for a non-immigrant visa?
Back in 2008 when Ma was dogged by the green card allegation, he was able to bluster through and won the election due to his high popularity at the time and also comments by former AIT director Douglas Paal, who said a green card becomes invalid when the holder stops using it for more than one year.
That the same allegation has resurfaced six years later suggests that Taiwanese are still confused about where Ma’s allegiance lies.
The US government’s new law to combat offshore tax dodging by US citizens will take effect on July 1. It will require foreign banks, investment funds and insurers to hand over information to the IRS about accounts over US$50,000 held by Americans.
Ma’s status as a permanent resident of the US would be confirmed if he received notification from the IRS to pay taxes. There is one downside — on grounds of personal privacy, the public may never know whether the IRS issued such a notification to Ma.
Another way is for Ma to come forward once and for all and address the public’s concerns on all questions pertaining to his green card.
As the issue exemplifies Ma’s credibility, the legitimacy of his presidency and his allegiance to the country, he should face the public in person rather than continuously hiding behind press releases and conferences convened by Presidential Office spokespeople.
Only then would Taiwanese be able to lay the issue to rest and be confident their president is truly loyal to the country he serves.
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