The EU protection of tax data transferred to third countries

This article analyzes FATCA legislation and its application at international and EU level in light of recent developments concerning the protection of tax information transferred to non-EU countries, in light of the recent General Data Protection Regulation (GDPR) and other guidelines issued by EU Authorities. It first provides a global overview on exchange of tax information and of the FATCA mechanisms applied through intergovernmental agreements. The study then describes the extraterritorial nature and negative externalities of FATCA, in particular the potential conflicts with EU law, with specific attention to the right of FATCA data protection under the GDPR. It concludes with suggestions for bilateral and unilateral EU-U.S. policies, with final remarks on a multilateral approach.