US tax reform affecting EU citizens and SMEs

Question for written answer E-000723/2018 to the Council Rule 130 Sophia in 't Veld (ALDE) and Thierry Cornillet (ALDE) Subject: US tax reform affecting EU citizens and SMEs Along with Eritrea, the United States is one of two countries worldwide that uses a citizen-based taxation system. Non-resident US citizens and ‘US persons’ are obliged to file a US tax return and are subject to various cumbersome reporting requirements. This affects many EU citizens with dual nationality, such as ‘Accidental Americans’. The US Government has stepped up enforcement in recent years, putting pressure on US citizens and US persons abroad, with FATCA, for example, increasingly resulting in EU citizens being excluded from basic banking services. The new US GILTI tax is a heavy administrative and financial burden on European SMEs, and could possibly even lead to bankruptcies, while the length and cost of the procedure to renounce US citizenship is prohibitive for many. 1) What diplomatic and legislative action does the Council intend to take to protect the interests of EU citizens and SMEs against citizen-based taxation by the US and Eritrea? 2) Though taxation is a purely national competence, does the Council consider a joint EU approach is needed to adequately protect the rights and interests of European citizens and SMEs? 3) Will the Council conduct a full analysis of the impact on EU citizens and SMEs?