France Rules Against Americans’ Privacy Rights – IRS FATCA Ruling
While many individuals across the globe are fed up with the IRS and are trying to persuade foreign corporations to get rid of FATCA…it’s not working too well, just yet.
First, the Canadian Federal Court rejected Americans’ residing in Canada’s plea to do away with FATCA.
Now, on the heels of that ruling, France follows suit and refuses to ease enforcement of the Foreign Account Tax Compliance Act known as FATCA.
France Rules Against Americans’ Privacy Rights
FATCA is the Foreign Account Tax Compliance Act. The goal is to reduce offshore fraud and evasion by facilitating the exchange of information between nations.
More than 110 countries and 300,000 Foreign Financial Institutions have agreed to comply with FATCA
Therefore, if you are a U.S. Person with accounts and assets in France, the French FFI (Foreign Financial Institutions) will report your foreign accounts and assets that you maintain in France, to the IRS.
Association of Accidental Americans
This organization (based in France) filed suit in France in order to attempt to stop enforcement of FATCA — based on the violation of “Privacy Rights,” but the court held that FATCA did not per se violate Privacy Rights.
FATCA’ Going Theme
Multiple lawsuits have been brought across the globe, hoping to do away with FATCA, and the “going theme” seems to be the same in rejecting these claims.
Namely, foreign jurisdictions do not want to encroach on U.S. offshore reporting requirements. And, since the reporting is limited to “Americans,” these foreign courts are carving out an exception to invasion of privacy rights, since it is limited to Americans.
In other words, since the impact is primarily limited to Americans, foreign nations such as France (and Canada) are not going to impinge on whatever the U.S requires of its Citizens or Legal Permanent Residents.
Out of IRS Foreign Asset or Account Compliance?
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