Bloomberg Tax
Free Newsletter Sign Up
Login
BROWSE
Bloomberg Tax
Welcome
Login
Advanced Search Go
Free Newsletter Sign Up

EU Tax Panel Wants Reciprocity Demands on U.S. Banks

Feb. 27, 2019, 10:24 PM

A European Parliament tax committee says U.S. banks should have to report information on EU account holders, just as U.S. law requires banks around the world to report American account-holder information.

Under the Foreign Account Tax Compliance Act, foreign financial institutions must report to the Internal Revenue Service information on U.S. accounts, or be subject to a 30 percent withholding tax. If the U.S. doesn’t take reciprocal action, the European Union should adopt a similar withholding tax, the committee said.

Outlined in a report the panel approved 34-4 on Feb. 27, FATCA reciprocity was one of numerous recommendations that also ...