Article taken from: www.ft.com
She argues in any case that she does not owe the IRS any tax as she earns far below the $104,000 threshold over which Americans living overseas must pay tax. Banks in the UK have to report any clients with links to the US to HMRC, which in turn passes the information to the IRS. US law dictates individuals should not have an expectation of privacy when it comes to financial records. “Nobody should evade tax.
My problem is not with FATCA’s objective but the disproportionate nature of the measure to achieve its objective,” Jenny wrote on her crowdfunded site. Her case comes in the wake of a hack on Bulgaria’s tax agency of 5m taxpayers’ data, which included information being exchanged between agencies as part of a new international rule based on FATCA . There are no available statistics to show how many of them earn more than $104,000. HMRC said in a statement that it could not comment on individual tax matters but that “FATCA plays an important part in the multinational fight against tax avoidance and evasion.
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