Tomorrow, on Tuesday 28 May at 15.30 the Economy and Financial Affairs Committee of the European Parliament will carry out a hearing on the question: The fight against tax evasion – FATCA as a step towards international automatic exchange of information?
The debate on tax justice and untransparent international financial transactions had last been triggered by the FATCA initiative in the US. FATCA forces practically every finance institution active in the US or offering US bonds to reveal information of US taxpayers to the American Internal Revenue Service. Furthermore, to ensure that transmitted information is complete and exhaustive, FACTA requires financial institutions to determine ownership structures of companies and trusts. This way, no income or asset of an American taxpayer remains opaque.
Together with the invited experts we want to discuss what impact the initiative will have on the automatic information exchange as a global standard, where it might be limited (e.g. by EU data protection legislation) and what could be similar options for the European Union.