[michel.blanc]

Hi everybody,

I live in the USA and I have a green card and french citizenship. Therefore, i'm a "US person" and I CANNOT open any brokerage account in France because nobody wants to bother with FATCA. Any website you go, they ask you if you are a US person and decline to register you.

What are the risks of hiding the fact that I'm a US person and proceed? I would lie to the bank in France but I would not lie to the USA as I would still report my account in my taxes and FBAR.

Thoughts?

 

[Bevdeforges]

The risks in your situation are related to what happens when (and if) the brokerage house finds out that you're actually a "US person." Obviously, you're going to have to use a French address if you want to go this route. They'll probably report your information to the Fisc, who will be looking for your French tax declaration at year end. But I'm not sure that that should cause any huge problem for you.

What seems to be happening over here in France is that the banks (and I assume the brokerage houses) are routinely sending out "tax residence" confirmation to all their customers - maybe not until you've had your account for a year or more. There, they may ask you point blank about your tax residence and, in your case, your US Social Security number.

They are the ones who will bear the penalties if it turns out you are "outed" as a US person that they haven't been properly reporting on. If and when they find out your "true" status, they are well within their rights to close out your account on the spot.
Cheers,
Bev

 

[michel.blanc]

Thank you for the quick reply. When you say: "They'll probably report your information to the Fisc, who will be looking for your French tax declaration at year end.", do you mind expanding on that or point me to a website?

I have another brokerage account (with ridiculous fees) that I had before going to the USA and it hasn't caused me any issues so far.

 

[Bevdeforges]

The issue is, I suppose, what address you are using for the account.

Can't point you to a definitive website, but I do know that the banks in France report transactions to the Fisc and that those that are relevant are now pre-printed on your tax declaration forms. The investment companies sometimes report transactions to the Fisc for inclusion on your tax declaration and sometimes just send you out a letter telling you what numbers to report on what lines of your declaration.

I know the banks in France have some distinction between a "resident account" and a "non-resident account" which relates to what information they report to the Fisc. I suspect the brokerages and investment companies may be expected to maintain a similar distinction based on what address you're using with them.
Cheers,
Bev