scholarly journals FATCA from the European Union perspective

2013 ◽  
Vol 2 (3) ◽  
pp. 7-13 ◽  
Author(s):  
Alicja Brodzka
Keyword(s):  
Financial Institutions ◽  
Tax Evasion ◽  
Tax Compliance ◽  
Internal Revenue Service ◽  
Due Diligence ◽  
The European Union ◽  
Eu Member States ◽  
Cross Border ◽  
Information Reporting ◽  
The Us

The Foreign Account Tax Compliance Act requires foreign financial institutions to report to the US Internal Revenue Service the information about financial accounts held by US taxpayers, or by foreign entities in which US taxpayers hold a substantial ownership interest. This aim of FATCA, which is to increase the ability of the American tax authorities to combat cross-border tax evasion by US persons, is reasonable. However, it imposes burdensome due-diligence, information reporting and withholding obligations on all foreign (non-US) financial institutions. It also raises legal concerns – notably data protection issues. The article analyses the main issues connected with FATCA, presents the pro and contra opinions, and looks at the reaction of EU Member States at the announcement of American provisions.

Due Diligence in International Tax Law

2020 ◽  
pp. 302-311
Author(s):  
Reuven S. Avi-Yonah ◽  
Gianluca Mazzoni
Keyword(s):  
Financial Institutions ◽  
Tax Evasion ◽  
Tax Compliance ◽  
Subsequent Development ◽  
Tax Law ◽  
Due Diligence ◽  
The Common ◽  
Overall Efficiency ◽  
International Tax ◽  
Private Actors

This chapter describes how the due diligence standard was developed in international tax law before 2008, and then how the standard was greatly modified after the financial crisis, the enactment of the Foreign Account Tax Compliance Act of 2010 (FATCA), and the subsequent development of the Common Reporting Standards (CRS). The chapter outlines how the due diligence concept is applied to private actors, especially financial institutions, to prevent tax evasion. It ends with some conclusions including that while due diligence in international tax law is currently embodied in a specific set of rules, there remains an absence of an overarching standard of due diligence, so that the overall efficiency of the rules requiring due diligence is weakened.

Fincen requires financial institutions to obtain beneficial ownership information for legal entity customers

2016 ◽  
Vol 17 (4) ◽  
pp. 34-44
Author(s):  
Ignacio Sandoval ◽  
Charles Horn ◽  
Melissa Hall
Keyword(s):  
Financial Institutions ◽  
Financial Services ◽  
Due Diligence ◽  
Legal Entity ◽  
Content Type ◽  
Financial Crimes ◽  
The Us ◽  
Beneficial Ownership ◽  
To Come ◽  
Customer Due Diligence

Purpose To provide an overview of the legal entity customer due diligence rule recently adopted by the Financial Crimes Enforcement Network (FinCEN), a bureau of the US Department of the Treasury. Design/methodology/approach This paper provides an overview of the requirements of the legal entity customer due diligence rule as well as some observations regarding the scope of the rule, its interplay with other regulatory requirements, and some of the rule’s ambiguities. Findings While the preamble to the new rule suggests that FinCEN was attempting to accommodate industry concerns, the literal terms of the rule may have the opposite effect. Practical implications Although financial institutions will have until May 2018 to come into compliance with the rule’s requirements, they should begin developing the infrastructure to support compliance with the rule as soon as possible. Originality/value Practical insights into issues that financial institutions may encounter when implementing the rule’s requirements from experienced financial services lawyers.

scholarly journals A Review of how Behavioural Insights have been Applied to Tax-Related Policy and Field Experiments in the European Union

2021 ◽  
Vol 72 (6) ◽  
pp. 799-825
Author(s):  
Michal Müller
Keyword(s):  
European Union ◽  
Tax Evasion ◽  
Field Experiments ◽  
Critical Evaluation ◽  
Tax Compliance ◽  
Future Research ◽  
The European Union ◽  
Long Term Effects ◽  
The Real ◽  
Behavioural Insights

Tax evasion is a problem in every country. Since taxes are the most important source of income for the state budget, finance ministers and tax authorities strive to increase tax compliance and secure higher tax revenues. In the context of European Union objectives to monitor the effects of behavioural insights and gather information for critical evaluation, this article contributes to these efforts by summarizing policies and measures related to increasing tax compliance. This article is based on a systematic review and is complemented by other relevant sources related to applying behavioural insights to tax policy. The article concludes that although there is empirical evidence to suggest that behaviourally informed initiatives and interventions have had a significant impact on tax compliance in the short term, there is not enough evidence to draw conclusions on the long-term effects. In addition, the real motives and causal mechanisms that have led to increased tax compliance are not entirely clear. The results of the research suggest that deterrence is an important factor. Although deterrence might increase tax compliance, it is uncertain whether it has any positive effect on tax morale in general. The article raises the argument that many behaviourally-informed techniques are actually based on deterrence. In this respect, the article calls for further research to reveal the real effects of behavioural insights. Further work on reviewing and evaluating research results will also be important, as individual initiatives across EU countries are not easily traceable. This fact represents the limits of this study and highlights opportunities for future research.

scholarly journals New opportunities in common security and defence policy: Joining PESCO

2021 ◽  
Vol 11 (3) ◽  
Author(s):  
Christian Leuprecht ◽  
Rhianna Hamilton
Keyword(s):  
The United States ◽  
Burden Sharing ◽  
The European Union ◽  
Strategic Partner ◽  
Eu Member States ◽  
The Us ◽  
Multilateral Institution ◽  
Defence Cooperation ◽  
The One ◽  
Strategic Autonomy

Responding to concerns about burden-sharing and aiming to improve internal defence cooperation, act more quickly and harness resource synergies, the European Union (EU) initiated the Permanent Structured Cooperation (PESCO) in 2017. PESCO, however, is controversial. On the one hand, the United States (US) wants greater burden-sharing by European allies whilst concerned about greater European military autarky that would undermine US influence over NATO, Europe/EU and EU member states. Onthe other hand, at least one European NATO ally wants to leverage PESCO precisely as an instrument to shore up European “strategic autonomy”. This tension over competing European defence futures leaves participation by third countries in limbo. Arguably, third-country participation would hinder greater European defence autarky. The article makes the case for the mutual benefits of third-country participation, focusing on Canada. Canada has a major stake in the outcome. NATO is Canada’s most important multilateral institution and Europe is Canada’s second-most important strategic partner, after the US. Canada’s unequivocal strategic interests in Europe have long informed its expeditionary priorities -- from the two world wars, when Canada coming to Europe’s defence long before the USproved existential for both parties, to nowadays. Since the 1970s, Canada and Europe have worked consistently together bilaterally beyond NATO to advance regional stability and mutual security interests. Canada’s and Europe’s defence futures are thus interdependent. Excluding third countries from participating in PESCO would have detrimental consequences for Canadian, European and transatlantic defence interests. In contrast, with third country participation, PESCO will be instrumental to effective transatlantic and transeuropean defence integration.

Collaborative Cross-Border Security Infrastructure and Systems

2013 ◽  
Vol 4 (2) ◽  
pp. 21-38 ◽  
Author(s):  
Luis Felipe Luna-Reyes ◽  
Douglas C. Derrick ◽  
Brent Langhals ◽  
Jay F. Nunamaker
Keyword(s):  
Institutional Design ◽  
Border Security ◽  
The European Union ◽  
Cross Border ◽  
The Us ◽  
Mexico Border ◽  
Important Challenge ◽  
Security Infrastructure ◽  
Conceptual Study ◽  
Us Mexico Border

A long-standing problem in the US-Mexico bilateral agenda is migration. Although both countries have important agreements to promote economic exchange and trade, the events of 9/11 and other acts of terrorism have increased concerns about border security. Since the US-Mexico border is one of the most important borders in the world in terms of activity, securing it without interfering with the legitimate flow of people and goods, poses an important challenge. The purpose of this paper is to propose conceptual frameworks and models to facilitate collaboration across national borders, by discussing and considering key factors for collaborative US-Mexico Border Security Infrastructure and Systems. Border security technical solutions pose an interesting domain because there are a myriad of concerns (e.g., political, economic, social and cultural) outside the technical implementation that must be deliberated and examined. In this conceptual study, unique aspects of trust, governance, information sharing, culture, and technical infrastructure are identified as the key ingredients in a cross-border collaboration effort. A bi-national organizational network appears to be an effective institutional design to develop a better understanding of the problem, as well as required policies and technologies. This approach is consistent with experiments, research, and conclusions found in the European Union.

Information Reporting and Tax Compliance

2020 ◽  
Vol 110 ◽  
pp. 162-166
Author(s):  
Bibek Adhikari ◽  
James Alm ◽  
Timothy F. Harris
Keyword(s):  
Credit Cards ◽  
Tax Compliance ◽  
Business Reporting ◽  
Information Reporting ◽  
The Us ◽  
Different Types ◽  
New Form ◽  
New Evidence ◽  
Role Of Information

Ensuring tax compliance is an enduring problem for governments in all countries. In this paper, we examine the role of information reporting in increasing tax compliance. We first discuss the practice of information reporting in the US, including a recent IRS initiative that implemented information reporting for income received through debit and credit cards via the new Form 1099-K. We then review the literature on the compliance effects of information reporting. Finally, we report some new evidence that indicates that Form 1099-K information reporting had significant--but heterogeneous--impacts on compliance rates of different types of business reporting.

The Emergence of Multilateral AEI

2020 ◽  
pp. 82-105
Author(s):  
Lukas Hakelberg
Keyword(s):  
Financial Institutions ◽  
Tax Evasion ◽  
Democratic Party ◽  
Tax Compliance ◽  
Barack Obama ◽  
Foreign Banks ◽  
Personal Interest ◽  
Tax Haven ◽  
Avoidance Measures ◽  
Withholding Tax

This chapter explains that the Foreign Account Tax Compliance Act (FATCA) has its origins in the longstanding efforts of anti-tax haven activists within the Democratic Party. These activists utilized testimony from a whistleblower and a former Union Bank of Switzerland (UBS) private banker to prepare a report on the bank's illegal offshore business with US clients. To increase publicity, they held a corresponding Senate hearing, which eventually triggered the UBS scandal. Shortly afterward, Barack Obama entered office. The scandal, his cordial relationship with Democratic anti-tax haven activists, and personal interest in the issue made combating tax evasion and avoidance a top priority for his administration. In contrast to proposed anti-avoidance measures potentially affecting US multinationals, legislation requesting more transparency from foreign banks serving US clients easily passed Congress. The result was FATCA, a law threatening foreign financial institutions unwilling to report account data of US clients with a 30 percent withholding tax on payments from US sources.

Power in International Tax Politics

2020 ◽  
pp. 25-48
Author(s):  
Lukas Hakelberg
Keyword(s):  
Tax Evasion ◽  
Tax Policy ◽  
Domestic Politics ◽  
Good Governance ◽  
The United States ◽  
The European Union ◽  
Administrative Authority ◽  
The Us ◽  
Regulatory Capacity ◽  
International Tax

This chapter develops a theory of power in international tax politics. This theory identifies market size and regulatory capacity as the decisive resources enabling governments to issue credible threats and inducements with a view toward making other governments do what they would not otherwise do. A lack of regulatory capacity explains why the European Union has not wielded the same power in negotiations over global tax policy as the United States despite the EU's similarly sized internal market. In fact, taxation remains an exclusive member state competence. Therefore, the European Commission has no administrative authority to impose penalties on third states or foreign firms not complying with tax good governance standards applicable within the union. At the same time, the principle of nondiscrimination enshrined in EU law prevents individual EU countries from passing sanctions against other member states abetting tax evasion and avoidance. Because of the lack of regulatory centralization in the EU, the US can act as a hegemon in international tax politics. Accordingly, US preferences determined by domestic politics decisively shape the content of global tax policy. The preferences of other governments merely affect the US administration's enforcement strategy.

scholarly journals Los efectos patrimoniales de los matrimonios y de las uniones registradas en la Unión Europea = Property consequences of marriages and of registered partnerships in the European Union

2019 ◽  
Vol 11 (1) ◽  
pp. 8
Author(s):  
Andrés Rodríguez Benot
Keyword(s):  
European Union ◽  
International Law ◽  
Private International Law ◽  
The European Union ◽  
Member States ◽  
Eu Member States ◽  
Cross Border ◽  
Property Regimes

Resumen: Desde el 29 de enero de 2019 la mayoría de los países de la UE aplica los Reglamentos 2016/1103 y 2016/1104, de 24 de junio de 2016, sobre los aspectos de Derecho internacional privado de los regímenes matrimoniales y de los efectos patrimoniales de las uniones registradas, respectivamente. Se trata de dos textos extensos y complejos que ofrecen una regulación global o de conjunto de los as­pectos de esta materia en supuestos que impliquen repercusión transfronteriza.Palabras clave: Régimen económico matrimonial,e Efectos patrimoniales de las uniones registra­das. Reglamentos de la UE 2016/1103 y 2016/1104.Abstract: Since 29th January 2019 most of EU Member States apply Regulations 2016/1103 and 2016/1104 concerning Private International Law in matters of matrimonial property regimes and in mat­ters of the property consequences of registered partnerships, respectively. Both are long and complex texts that govern comprehensively all issues of those matters having cross-border implications.Keywords: Matrimonial property regimes. Property consequences of registered partnerships. EU Regulations 2016/1103 and 2016/1104.

scholarly journals New relations of the European Union and China: Friends or frenemies?

2020 ◽  
pp. 77-93
Author(s):  
Sanja Arezina
Keyword(s):  
Negative Attitude ◽  
Open Market ◽  
The European Union ◽  
Policy Changes ◽  
Chinese Market ◽  
Member States ◽  
Eu Member States ◽  
The Us ◽  
Pr China ◽  
The Eu

After the promotion of ?Made in China 2025? initiative and the beginning of US President Donald Trump?s tenure in power, in US and whole world there has been a rising negative attitude towards Chinese presence. The launch of a US-China ?trade war? and the closure of the US market for Chinese direct investment and product coincided with growing discontent of EU member states over the treatment that European companies have had at the Chinese market. As a result, there has been a change of the positive perception of the PR China by the EU member states, that was created mainly by strong inflow of Chinese investments and assistance within the ?One Belt, One Road? initiative, into a negative perception that is now forming policy changes and introduction of protectionist measures towards Chinese direct investments in European market. In this article, the author talks about the different perceptions (positive and negative) that have been formed in the PR China within the EU, the factors that have influenced the change in the perception of EU member countries towards the PR China and the consequences on the dynamics of the development of different policies at EU level. To be able to prove the basic hypothesis that Brussels, unlike the US, still shows some pragmatism by making policy changes moderate enough that the EU can remain loyal to open market principles while preventing these principles from becoming strategic vulnerability, the author uses the structural-functionalist analysis, induction, and deduction.

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