Following its mission to Washington last July (see EUROPE 13010/12), the European Parliament’s Committee on Petitions (PETI) issued a series of recommendations on the US Foreign Account Tax Compliance Act (FATCA) in its draft mission report published on Tuesday 17 January.
In this text, which will be discussed on Wednesday 25 January in the parliamentary committee, MEPs call on the Member States to give the European Commission a mandate to negotiate a common agreement with the United States on FATCA that would replace the bilateral intergovernmental agreements currently in force, in order to ensure full reciprocity and compliance with EU law, in particular the General Data Protection Regulation (GDPR).
They also recommend that EU citizens subject to FATCA reporting should be allowed to use simplified reporting or be exempted from it altogether for those with long-term residence in the EU.
The MEPs want the Member States to engage with the US side to provide an easy way to renounce US citizenship for those who are willing to do so.
The Association of Accidental Americans (AAA), which represents people born in the United States but with no connection to the country, has filed a lawsuit in the US courts to ensure that Americans have the fundamental right to expatriate and renounce their US citizenship (see EUROPE 13095/10).
Finally, MEPs believe that assistance should be provided to EU citizens and financial institutions on tax compliance, including by reintroducing tax attachés in US embassies and consulates and improving the availability of hotlines and online resources.
To consult the draft report: https://aeur.eu/f/4z4 (Original version in French by Anne Damiani)