Commission bows for the US | FATCA in the European Parliament

Yesterday the European Commission answered questions by Parliament regarding FATCA-implementation in the EU. In the answer the European Commission turns a blind eye to the problems of Accidental Americans.
According to the Commission there is no evidence the bilateral FATCA-agreements breach European law; the Commission also thinks the European basic bank account rules are not violated by banks.

The answer is in line with earlier communications of the European Commission and shows that in regard of financial human rights Europeans have nothing to expect from the Commission.

The full text of the answer:

Parliamentary questions
7 April 2020 
Answer given by Mr Gentiloni on behalf of the European Commission
Question reference: E-000816/2020

The bilateral agreements between EU Member States and the United States (US) implementing the Foreign Accounts Tax Compliance Act (FATCA) are not within the remit of the Commission unless they breach EC law. To date, there is no evidence of any such breach. Nationality ties, even when acquired by ‘accident’, come together with the existence of reciprocal rights and duties, including paying taxes in the United States for US citizens.

The impact of FATCA on individuals and financial institutions and the lack of full reciprocity have been raised with the US authorities by Members of the Commission and their competent Services on a number of occasions. We have seen improvements on the first two issues, i.e., the impact on citizens and financial institutions, with additional guidance and information published on US administrations websites, and new ‘relief procedures’ for individuals who wish to relinquish their citizenship.

Concerning the respect of the Payment Accounts Directive, the Commission has looked into the alleged infringements of the right to a basic bank account as prescribed, but has found no evidence of violation of the EU legal framework in the national measures transposing the directive.

The negotiation on an EU agreement with the US on automatic exchange of information would be conditional to a mandate by the Council. So far, the Commission has not received any indication that such a mandate is being considered.

Other versions of the answer: MS Word, pdf.

 

More on FATCA on this blog: page with general information, posts on FATCA.

Over Ellen Timmer, advocaat ondernemingsrecht @Pellicaan

Verbonden aan Pellicaan Advocaten, http://www.pellicaan.nl/, kantoor Rotterdam, telefoon 088-6272287, fax 088-6272280, e-mail ellen.timmer@pellicaan.nl ||| Weblogs: algemeen: https://ellentimmer.com/ || modernisering ondernemingsrecht: http://flexbv.wordpress.com/ ||| Motto: goede bedoelingen rechtvaardigen geen slechte regels
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