In its September plenary meeting the European Parliament discussed exchange of tax information. There was a resolution adopted that contains the following on FATCA:
46. Acknowledges that DAC provisions are largely coherent with the OECD CRS, and that they substantially overlap with the US Foreign Account Tax Compliance Act (FATCA), while also containing important differences with it;
47. Deplores the lack of reciprocity under the FATCA; observes that the United States is becoming a significant enabler of financial secrecy for non-US citizens; observes that there are two main loopholes: only information on US assets is shared, and no beneficial ownership information is shared; calls on the Commission and the Member States to enter into new negotiations with the United States in the OECD framework in order to achieve full reciprocity within a commonly agreed and strengthened CRS framework; stresses that this would lead to significant progress and lead to lower compliance costs for FIs and significantly reduce bureaucratic burdens; calls on the Commission and the Member States to enter into negotiations for a UN Tax Convention;
48. Deplores the side effects the FATCA still has on so-called accidental Americans; regrets that, to date, no lasting solution has been found at the European level;
We’ll see if finally there is going to happen something.
- European Parliament resolution of 16 September 2021 on the implementation of the EU requirements for exchange of tax information: progress, lessons learnt and obstacles to overcome (2020/2046(INI)), html, pdf.
- Lehagre, the chairman of the French organisation of Accidental Americans mentioned the resolution in a message on LinkedIn, pointing out: “#FATCA agreement violates the #GDPR and moreover, it is not reciprocally enforced by the United States. These are the facts ! It’s the responsibility of national personal data protection authorities to prohibit these transfers or of the European Commission to open infringement proceedings against Member States.“.
- Introduction of the subject by the European Parliament: Taxation: MEPs to evaluate effectiveness of tax information sharing, briefing for the European Parliament, 9 September 2021.
A general introduction of FATCA and Citizenship Based Taxation and the way the U.S. harms European residents is to be found here (in Dutch).