October Approval Planned for New EU FATCA-Inspired Law

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Sept. 24 —  The European Union is expected to take its next major step in combating tax evasion when EU finance ministers vote in October on a FATCA-inspired law requiring automatic exchange of data about dividends, capital gains and other income generated from assets held in a financial account.

The move to expand the EU administrative cooperation legislation, modeled after the Foreign Account Tax Compliance Act, will also incorporate the Organization for Economic Cooperation and Development's common reporting standard (CRS) adopted in July.

“We have been waiting for the OECD common reporting standard and now that it has been finalized the work will go ahead based on a compromise text presented by the Italian presidency,” said Bert Zuijdendorp, a European Commission official who spoke at a Sept. 22 conference in Paris hosted by the European Banking Federation. Italy currently holds the EU presidency and therefore coordinates the work in the EU Council of Ministers.