13 Sep 2019
HMRC is facing a legal battle to block it from handing personal details about British citizens to US tax authorities.
The case could have wide-ranging implications for tens of thousands of so-called accidental Americans who left the US when they were months or years old but risk having their British bank accounts frozen for failing to comply with the US tax requirements.
The case will challenge the 2010 Foreign Account Tax Compliance Act (Fatca), which requires foreign financial firms with US operations – including UK banks – to report information about US taxpayers to the IRS or face huge fines.
It is the latest fightback against the long arm of America’s tax authority. A challenge is also on the horizon from the French Association of Accidental Americans (AAA). The AAA’s president Fabien Lehagre said his group will file a formal complaint with the European Commission as early as October. It comes after the group lost an appeal in France in July.
“I hope the United Kingdom justice [system] will be more independent than the French courts this summer,” Lehagre said.
By Kalyeena Makortoff, The Guardian, 12 September 2019
Read more at The Guardian
You can claim CPD minutes for this content, by signing up to our CPD WalletFREE CPD Wallet