FATCA and Germany

11 thoughts on “FATCA and Germany”

1. Hat tip to Daniel Kuettel ;
   “The American compliance mafia closed the innocent accounts of a father because he wanted to open up an innocent kiddie account for his newborn child. These victims of government crime aren’t even US citizens.” https://www.facebook.com/groups/AmericanExpatriates/permalink/661492654016810/
   Article in question:
   http://www.srf.ch/sendungen/kassensturz-espresso/raiffeisen-kuendigt-kunden-weil-er-die-us-deklaration-verweigert-2

2. https://www.toytowngermany.com/forum/topic/364635-what-the-fatca-an-american-turned-german-data-mystery/

   Interesting thread

3. Interesting;
   ‘Review of Regulations Dividend Equivalent Payments and Qualified Derivatives Dealers ‘
   July 31, 2017

   from
   Association of German Banks to the US Treasury

   https://bankenverband.de/media/files/2017_07_31_DK_Brief_BdB_Schreiben_an_Treasury.pdf
   “….We appreciate the considerable efforts made by
   the Treasury Department and the IRS to implement the provisions of Section 871(m) IRC. Yet we strongly believe that warrants and securitized structured notes were not within the initial scope of the statute simply because these types of products do not have the potential for tax avoidance. The final regulations in their current form are lengthy, complex and ambiguous, and they go far beyond what is necessary to
   address abuse. The burdens imposed on financial intermediaries by the Section 871(m) regula-
   tions are substantial, and costs may exceed the amount of tax that the Treasury Department
   can expect to collect as a result of the new rules.
   In addition, the implementation of Section 871(m) beyond “delta one” contracts may be the
   source of political tension with a number of countries. We have learned that Germany, together
   with France, Italy, Spain and the United Kingdom (hereinafter the G5 countries), wrote to the
   U.S. Treasury Department in 2016 stating their position that dividend equivalent payments un-
   der Section 871(m) IRC do not qualify as dividends under the applicable United States Double
   Taxation Treaty when paid by non-U.S. entities. As far as we are aware, the United States has
   not yet resolved this point with the G5 countries.
   Moreover, we have received a letter from the German Ministry of Finance stating that our na-
   tional tax administration does not regard dividend equivalent payments under Section 871(m)
   IRC as dividends according to Article 10 of the Double Taxation Treaty with the United States.
   Instead, these payments would fall under the “Other income” Article 21 of the Double Taxation
   Treaty. Thus, the U.S. would have no taxation right, and if German taxpayers were subject to
   withholding tax on dividend equivalent payments in circumstances overriding the Double Taxa-
   tion Treaty, Germany would not grant a credit against their German tax liability.

   As such, we consider it unfair to put foreign custodial institutions in a position of having to
   choose between their obligations under the QI agreements and the view of their local tax ad-
   ministration. We believe the US government should discuss the implementation of Section
   871(m) with these countries under their respective Double Taxation Treaties. …..”

4. Here is a new group for Accidental Americans in Germany:

   What the FATCA – Deutsche im amerikanischen Steuerschlamassel

5. https://global.handelsblatt.com/finance/commerzbank-threatens-throw-us-brokerage-customers-920014
   “Commerzbank threatens to throw out US brokerage customers

   Thousands of customers with ties to the US were asked to contact the bank as increased reporting requirements make US clients a headache.
   By

   Andrew Bulkeley Andrew Bulkeley

   Published on
   May 8, 2018”

6. https://global.handelsblatt.com/opinion/american-expats-germany-face-tax-nightmare-920148
   ‘American expats in Germany face tax nightmare’

   “Americans abroad have long suffered from a US tax regime that is unique in the way it torments its own expats, and last year’s tax “reform” made things worse, says an American tax lawyer. But there is hope.”
   By
   Monte Silver

   May 8, 2018

7. Zufällig-Amerikaner“ verlieren ihr Konto

   VON HANNO MUSSLER -AKTUALISIERT AM 09.02.2019

   https://www.faz.net/aktuell/finanzen/meine-finanzen/sparen-und-geld-anlegen/steuerpflicht-zufaellig-amerikaner-verlieren-ihr-konto-16031376.html#lesermeinungen

8. Interessant, und echt Scheisse.

   I have a German ING account but I opened it in 2013 and used a Canadian passport with US birthplace. They didn’t notice then, they don’t seem to have followed up, so with luck I won’t have any issues keeping it.

   There’s a fair bit of scaremongering in the article because they are interviewing a Dutch compliance pro, the guy from American Overseas. I remember them shutting down Facebook comments the instant one mentions how the IRS can’t collect, so I find their advice suspect. Non-compliance is both bad for their business model and offends their rule-following nature.

   Also lots of mention in the article of the rules regarding clients needing to provide SSNs for existing accounts being tightened/enforced come 2020. I’d be curious as to whether that actually happens, given that if anything the US is having to back down on some of this (e.g. the withholding change).

   The IRS kann mich am Arsch lecken.

9. Many Americans abroad face an increased tax burden as a result of President Trump’s tax reform. Dual citizens are renouncing their US nationality at record rates

   By Katja Ridderbusch March 2019

   http://www.german-times.com/many-americans-abroad-face-an-increased-tax-burden-as-a-result-of-president-trumps-tax-reform-dual-citizens-are-renouncing-their-us-nationality-at-record-rates/?fbclid=IwAR0wNHHsmh_LWLfm6wn1PZCkyAueGOTL-ge6rgMBkQtQCH3OWJ82sfNCgRg

10. Katja Ridderbusch
    @K_Ridderbusch
    Independent print and radio journalist with a focus on health and medicine. German-American. Reports for @DLF @welt @spiegelonline @NPR @AtlantaMagazine

    Atlanta, GA

11. «Auf Nimmerwiedersehen»: German and Swiss Banks Kick Private Clients With U.S.-relation Out
    Published on March 3, 2019
    Martin Raab Picture: Martin Raab and Brendan Todd / American-German Business Summit Munich

    https://www.linkedin.com/pulse/auf-nimmerwiedersehen-german-swiss-banks-kick-private-martin-raab/