FATCA on the PETI Commission (EU) agenda: The European Commission was aware of fundamental rights issues of FATCA.
On November 10 there was a hearing on US FATCA legislation in the PETI Committee of the European Parliament.
You can view the recordings (as from minute 17:45), below a short report.
Mr. Jude Ryan and his lawyer Noseda will speak about new facts on November 10.
Legal investigation would show that the European Commission was aware of FATCA before these bilateral treaties with the EU Member States came into effect. A statement that was denied in an earlier EU session. The EU Parliament has indicated several times that the problems surrounding FATCA are problems of the Member States themselves, as these are bilateral treaties, and that the EU cannot do anything about this.
Noseda provides evidence on November 10 that there have been several agreements on FATCA between the European Parliament and Washington. Noseda thus states that the European Commission lied to the European Parliament.
Noseda also proved in the session that it was clearly stated in a memo to the European Parliament that the US privacy standard with which the reports are sent to the IRS do not comply with the European standard. This would make FATCA contrary to EU law.
Closing accounts does not go against European law on a bank account.
Americans in Europe are experiencing serious problems with European banks. The refusal of a bank account or the blocking / freezing of existing bank accounts is unfortunately increasingly common. Especially if one cannot provide a TIN / SSN or a CLN. The bank’s failure to report the requested data to the IRS leads to a fine for the bank, according to the banks.
To counter this, European banks are currently banning customers with American nationality, even if they have lived in Europe for a long time and are EU citizens.
“Our system values economic interests more than the rights of European residents,” said MEP Alex Agius Saliba. MEP Sophie in ‘t Veld and other colleagues also speak out very clearly.
They call for action from the European Union and its Member States. About 500,000 bank accounts will soon be closed and that is unacceptable, argues in ‘t Veld in the hearing.
Several employees of the European Commission have their say and say that they should not underestimate the problem. However, not much has changed compared to last year, says Pierre Seailles of the European Commission.
The US tax authorities IRS has done everything to make the information clear by sharing information on the various open websites for banks and individuals.
Enabling renunciation of citizenship through a new procedure and clarifying the procedure for applying for a TIN / SSN.
Petitioner Jude Ryan is done with the apologies made by MEPs. If the Commission is not doing its job, he wants to ask his fellow fighters in the European Parliament to remind the Commission of the Principle of the Separation of Powers.
If the Commission does not function properly then this is punishable. It would be a radical but also the only next step, according to Ryan.
Madam Chairman concluded by proposing to keep the Petition open, to see if the new government of America to be formed makes changes to FATCA legislation and to send a letter to the German Chairman to request an update.
Read our previous coverage of FATCA and the EU:
Americans Overseas informs local and European parliaments about the effects and problems European citizens have with these (recently) enforced laws.
We started this initiative to help people from all over the world by providing proper information to avoid unnecessary panic, and offering help free of obligation and free of charge. If needed, we have a network of affordable professionals (accountants) who can help you with your tax obligations.
If you have more questions about the consequences of FATCA and CBT on European-American citizens you can contact us at Americans Overseas.
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