Bloomberg Tax
Feb. 27, 2019, 10:24 PM

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

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 ...

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