Bermuda is a proud nation, justifiably so — with our long, long spectacular tradition of seafaring commerce. 400 years ago, when the settlers in Jamestown were still in sheer survival mode, our ancestors established an extraordinary reputation as the dominant shipbuilders and pilots of the seventeenth century. Our ancestral sailors aggressively criss-crossed maritime borders in the North Atlantic with daring and skill, virtually dominating maritime trade while achieving financial success far exceeding the limits of nations 100-fold larger.

Super fast and sleek Bermuda sloops, made of durable cedar and sporting the first single-masted gaff rigging (the basis for almost all modern sailing yachts) were the envy and emulation of the seafaring world at that time in history. Some 4,000 of these sloops were built for trade and purchase, according to the fabulous book by Professor Michael J Jarvis, the author of In the Eye of All Trade: Bermuda, Bermudians, and the Maritime Atlantic World 1680 — 1783.* A recent article in The Royal Gazette described his latest endeavour to locate some of these sloops, possibly at rest in the Caribbean Islands.

When you think about it, we Bermudians (I’m calling everyone who resides here this name since we all came from somewhere else) were really some of the original pondstraddlers.** Our forebears set up satellite bases here and there on other island nations, the Eastern Seaboard, and as far north as Nova Scotia, but were always ready to return home to Bermuda island, where the heart remained.

We are also strongly independent even when it comes to crossing borders into another country. Travelers, in the past, tended to take a casual approach to travel out, stay as long as they wanted, do a little work, maybe start a business, especially in the United States. After all, what was the harm? Plus, Bermudians have so many contacts (and possible ancient relatives) abroad — starting with major Bermudian emigration to the Carolinas in the seventeenth century, multiple emigrations to the West Indian Islands and the like — we are practically kissing cousins.

Admirable Bermuda maritime historical exploits aside, we take a quantum leap to this century and the present day. Bermudians, always anxious to leave the ‘Rock’ (and just as concerned about getting back here), travel everywhere. In fact, Bermuda residents may be the most globe-trotting group of individuals on the planet.

New mobility controls

But, the ties that bind are no longer so blessed.

Crossing national borders is a now a very serious business, not what it used to be when, for example, a copy of a birth certificate sufficed to board a plane. And not much more than that was done way back then to officially track individual mobility. The tragedy of 9/11 and other recent national security threats mean that most countries have become more border securitisation conscious as they endeavour to reduce their risk than ever before. Governments want to know who is entering and exiting their country. The electronic age introduced RFID chips in passports, biometric fingerprinting, retinal eye scans, along with subtle processes, such as the concept of panoptic sorting*** and techniques for inspection, identification, clearance, and surveillance into the analysis of individual mobility monitoring.

The United States through its Customs and Border Protection (CBP) agency, in 2013, eliminated paper I-94 arrival/departure records for foreign nationals (non-immigrants) entering the US. All travel records are now tracked electronically through the I-94 system. In early May of this year, foreign nationals (non-immigrant) travellers to the United States are able to access their last five years of arrival/departure records by going to the I-94 webpage, filling in their name, birth date, passport number, and country of issuance. (See link below)

What is the significance of this initiative, if any, to you, the reader?

The answer is simple, really. The United States government knows how many days you have spent in the US every year for the past five years.

The definition of residency, meaning where you as an individual (and family) reside, generally dictates where you are subject to tax. Residency for most country’s regulatory and tax guidelines, relative to tax treaties, revolve around the 183-day rule as the most defining connection of a resident.

And, if you have crossed that line, not only will you have overstayed under US immigration admissible terms (non-compliance with US law) but you may be classified as a US tax resident subject to tax on your worldwide income.

United States tax law differs from other countries. US tax law is also not correlated with US Homeland Security regulations regarding acceptable length of stay. Your customs officer may issue you a physical, or electronic visa that allows you to legally stay in the United States for six months (180 days). However, the US Internal Revenue Service, the administrator of US tax law, does not agree with the visa rule — from a tax perspective, presenting a conflicting confusing set of rules for the foreign national travelling to the US.

Next: Crossing borders is a serious business. When was the last time (or any time) that you tracked your length of stays in the United States under the Substantial Presence Test? What could the overstay consequences mean? Do you think your records will match the US CBP I-94 webpage records? What if you are categorised under the ‘Bermudian’ exemption visa — will your travel tracking be there anyway? This answer is not known at time of publication, but research is undertaken.

Sources:

* In the Eye of All Trade: Bermuda, Bermudians, and the Maritime Atlantic World 1680 — 1783 by Michael J Jarvis.

This is a marvellous book. All Bermudians who care about the history of this country and our influence on the maritime trade history should have a copy. It is meticulously researched, with a narrative that brings you into the Bermuda world of that time.

** Definition of pondstraddler: a person with one foot on each shore whose heart resides in both countries.

*** Theorizing Cross-Border Mobility: Surveillance, Security and Identity by Robert Palitto and Josiah Heyman.

**** US Customs and Border Protection I-94 webpage. https://i94.cbp.dhs.gov/I94/request.html PURPOSE: The information that you submit when attempting to access this website will be used to retrieve your arrival and departure records from the Non-Immigrant Information System (NIIS) collected during the preceding five years. CBP will retain the information you submit when attempting to access your records through this website for three months for audit and system performance purposes. NIIS maintains information for entry screening and admissibility determination purposes for non-immigrant visitors to the United States. NIIS also serves to track the period of admissibility of non-immigrant aliens and maintain a central repository of contact information for these aliens. It captures arrival and departure information to identify travel patterns, arrivals without departure, and nonimmigrant aliens overstaying their admissible terms in the United States. The timely and accurate capturing of this data is necessary for monitoring compliance with US law.

Martha Harris Myron CPA CFP JSM, Masters of Law: International Tax and Financial Services, appointed to the Professional Tax Advisory Council, American Citizens Abroad, Geneva, Switzerland

The Pondstraddler* Life™ Consultancy: planning, publications, presentations on international tax, immigration, investment, retirement, legacy, and related financial challenges to the lifestyles of internationally mobile individuals and their businesses residing, working, crossing borders, and straddling ponds in the North Atlantic Quadrangle. Specific focus for residents of Bermuda, the premier international finance centre. Contact: martha@pondstraddler.com

* Pondstraddler. A person with one foot on each shore whose heart resides in both countries*

This article is general consumer education only. The information provided herein may not be applicable in personal individual situations and should not be relied upon or acted upon without financial, tax, and/or legal professional advice that is specific to your particular financial circumstances.