Paris: France’s top administrative court has ruled that French authorities can pass on tax information to their US counterparts, rejecting a motion by dual citizens who have been trying for years to stop France cooperating with the US’s FATCA tax treaty.
The Conseil d’Etat ruled on Friday that France’s measures to implement FATCA, or the Foreign Account Tax Compliance Act, didn’t contravene the country’s privacy laws. It also rejected arguments that US doesn’t adequately cooperate with French tax authorities in return.
FATCA was passed in 2010 and forces banks wanting to operate in the US to report any assets held by American citizens overseas. France signed up to FATCA in 2013. While the measure is aimed at tax avoidance, it’s created problems for many American expats and dual nationals of modest means who have been rejected by retail banks seeking to avoid hassle and risk.