03/12/21

US: ‘Accidental’ Americans file Fatca appeal in Belgium.

As published on international-adviser.com, Friday 3 December, 2021.

A group of Belgian accidental Americans has appealed to the country’s council of state to stop Belgium from complying with the US Foreign Account Tax Compliance Act (Fatca).

The legislation sets out that Americans living overseas, and their foreign financial institutions, are bound to report their personal information to the Internal Revenue Service (IRS) for tax purposes.

But those affected, including the Association of Accidental Americans (AAA), believe the practice to be illegal as they claim it breaches the EU General Data Protection Regulation (GDPR) since they cannot consent to the transfer of their information.

The appeal follows a refusal by Belgium’s Federal Public Service Finance to stop data transfers to the US.

The plaintiffs have asked the council of justice to liaise with the court of justice of the European Union regarding the practice’s compatibility with the GDPR regime.

The European Data Protection Board has already called on member states in April 2021 to assess and amend international agreements involving international transfers of personal data.

The AAA has been challenging Fatca compliance across the EU with legal battles in the Netherlands, France, Luxembourg and the European Commission; as well as suing the US department of state for halting passport renunciation services in embassies and consulates around the world during the pandemic.