I understand what you’re saying but the current definition of what constitutes a foreign contact is too complex and should be simplified if we want to cast a larger umbrella. If it’s going to be complex it needs to get even more specific. It shouldn’t be something you get to dwell on.
Sure, you shouldnt be selective in your reporting (as you point out) but perhaps the very fact that you can be selective based on a technicality is a problem. And I’m certain there’s people who get away with it.