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Tag Archive for France

Accidental Americans Latest: French Banks Warn Of Potential Need To Close 40,000 Accounts

France And US

The head of the French Banking Federation has formally warned France’s finance minister that he country’s banks may be forced to close as many as 40,000 bank accounts by the end of the year, owing to problems these banks have in complying with the U.S. tax information reporting law known as FATCA.

The 40,000 bank accounts in question are understood to be those of individuals who are either Americans or dual American and French citizens. The fact of their American citizenship obliges banks in France and elsewhere around the world to provide data on these clients to a French agency that subsequently supplies it to the U.S., as the Foreign Account Tax Compliance Act requires.

In his letter to French foreign minister Bruno Le Maire, dated July 17, French Banking Federation chairman Laurent Mignon noted that France’s banks say they face significant financial penalties from the U.S. if they fail to provide it with such information as the so-called Tax Information Numbers (TINs) of all of its American clients, and yet, he explained, they are unable to do this because many of these “French-speaking [French] citizens born on American soil” lack “lack any concrete link with the United States, where they no longer reside,” and therefore don’t have TINs or other documentation the U.S. is seeking.

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American Couple In France In Major Win Against IRS Over Tax

French Flag

In a development that is being seen by American expat groups in France as a major win, the U.S. Internal Revenue Service has admitted in a U.S. Tax Court that it had wrongly collected millions of dollars of tax from France-resident American citizens, ending a years-long legal saga that could see millions of dollars paid to U.S. expats who have lived in and been filing tax returns from France, in the form of refunds.

The matter, which is seen as changing an element of the way Americans resident in France are taxed by the U.S., could lead to thousands of the estimated 100,000 American citizens currently living in France claiming back up to US$100m from the U.S. government, according to London-based U.S. tax attorney Stuart Horwich of Horwich Law.

Horwich assisted Ory and Linda Eshel, the two France-resident U.S. taxpayers who mounted the legal case in question, in bringing their claim to court.

At issue is a court statement by the IRS, in a Washington, DC court, that it had finally accepted that U.S. citizens resident in France could deduct against their U.S. taxes certain previously disallowed taxes paid to France.

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Italian Supreme Court Ruling On Beneficial Ownership

Marco Rossi

With its ruling n. 27113/2016 issued on December 28, 2016, the Italian Supreme Court interpreted and applied the beneficial ownership provision of article 10 of the tax treaty between Italy and France, for the purpose of determining whether a French holding company, wholly owned by a U.S. corporation, was entitled to the imputed credit granted under that treaty in respect of dividends received from an Italian subsidiary.

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The Interpretation of US Tax Treaties

John Richardson

Domestic Law, Foreign Law, or the Intent of the Treaty

 

On August 5, 2016 the United States Court of Appeals for the District of Columbia Circuits issued it’s decision in the Esher case.

This important case is: FRENCH TAXES US COURT REVERSAL 5 AUG 2016 (1)

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