The tax and banking obligations that weigh on “accidental Americans, under the American ‘FATCA’ law (US Foreign Tax Compliance Act), were on the table at the Ecofin Council on Tuesday 16 February. The subject was addressed as a ‘miscellaneous’ item, at the request of the Dutch Minister of Finance (see EUROPE 12655/31).
According to a European source, the discussion was short. The Commission and the Council of the EU insisted on the importance of initiating discussions with the new US administration on this issue.
Before the press, the Vice-President of the European Commission, Valdis Dombrovskis, recalled that these issues had already been discussed informally on several occasions by the Commission with the American authorities.
During its Presidency of the Council of the EU, Germany took up the subject at the end of 2020 and made an appointment with the American tax authorities to discuss it (see EUROPE 12625/35). This initiative was welcomed by the Commission.
“We stand ready to assist Member States in these talks whenever it is needed, but it is worth [noting] that FATCA’s rules are bilateral agreements between the United States and individual EU Member States. Correspondingly, the Commission has no formal role in the implementation of those agreements, as long as Member States respect their obligations under the EU Treaties”, Mr Dombrovskis said.
In a note prepared for the meeting, the Netherlands considered that a “permanent solution”—possibly in the form of an exemption—should be proposed for “accidental Americans”.
The only other Member State to take the floor at the meeting was Belgium, insisting on the need to find a practical and cost effective solution for the people concerned. (Original version in French by Marion Fontana)