Accidental Americans Association Urges Luxembourg Administrative Tribunal to Halt FATCA Data Transfers chronicle.lu - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from chronicle.lu Daily Mail and Mail on Sunday newspapers.
They aim to stop the European country from sharing information with the US
The Association of Accidental Americans (AAA) has filed an appeal with the Luxembourg Administrative Tribunal after the country’s tax authorities refused to stop the transfer of personal data to the US.
The sharing of personal financial information is required under the Foreign Account Tax Compliance Act (Fatca) to determine how much tax US citizens who live overseas need to pay, as the US is one of two countries in the world to have a citizenship-based taxation model.
Foreign authorities, financial institutions and individuals are all bound to report under the legislation.
Monday, January 11, 2021
Wiggin and Dana’s Immigration and Nationality Law and Compliance Practice Group addresses the spectrum of business immigration needs for employers and related individuals, including the incidental compliance areas that intersect with immigration law. Tax law is one such area. As we begin a new year, we are providing a quick refresher on some primary tax law considerations related to U.S. immigration status. Of course, it is imperative to consult with immigration and tax advisors to ensure compliance in both areas.
For U.S.
federal income tax purposes, the Internal Revenue Service (“IRS”) categorizes individuals into three groups: 1) U.S. citizens, 2) resident aliens, and 3) nonresident aliens. Each group is subject to different rules with respect to U.S. tax payment and filing obligations, and there are different withholding requirements for payments made to individuals in different groups. The discussion below will focus on
They argue Belgium and Luxembourg should stop ‘illegal’ transfers of data to the US
The Association of Accidental Americans (AAA) has filed two legal complaints simultaneously in Belgium and Luxemburg to demand the “immediate halt to the transfer of European citizens’ personal data to the United States”.
The claims relate to the countries’ adherence to the US’ Foreign Account Tax Compliance Act (Fatca), which requires US citizens overseas and their foreign financial institutions to report their information to the Internal Revenue Service (IRS) for tax purposes.
The association claims the data reporting is “illegal” and breaches European privacy laws.
The US is one of two countries in the whole world that has a citizenship-based taxation system.