CRS: no report if you bank in your country of residence?

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This topic contains 17 replies, has 8 voices, and was last updated by  Streber 8 months, 3 weeks ago.

Viewing 15 posts - 1 through 15 (of 18 total)
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  • #3684

    ayers
    Participant

    Say, if you live in Country “A” and show the ID card of the same country when you open a bank account in Country “A”, then you will not be a reportable person and nothing would be reported unless the bank thinks you have ties to other countries. Is that correct?

    What if you have the same bank account but you have an address in country “B”?
    Now the bank in country “A” must report… to the financial/tax authority of country “A” ?
    who in turn would send data to Country “B”?
    But this would mean your account balance is also exposed to tax authority of Country “A” who handles the information, which was not he case in first example?

    • This topic was modified 10 months ago by  Streber.
    #3685

    ayers
    Participant

    Sorry this was meant to be posted under Other discussions. Please Streber can you move the topic? Thanks.

    #3715

    Streber
    Keymaster

    Say, if you live in Country “A” and show the ID card of the same country when you open a bank account in Country “A”, then you will not be a reportable person and nothing would be reported unless the bank thinks you have ties to other countries. Is that correct?

    The bank will look at more than just your ID card. If you also show a passport from Country B, a proof of address from Country B, and a phone number from country C, you might find yourself subject to multi-jurisdictional reporting.

    What if you have the same bank account but you have an address in country “B”?
    Now the bank in country “A” must report… to the financial/tax authority of country “A” ?
    who in turn would send data to Country “B”?

    Yes, that is the correct procedure. The bank reports to its home-jurisdiction competent authority, which in turn alerts the competent authority in the other jurisdiction(s).

    But this would mean your account balance is also exposed to tax authority of Country “A” who handles the information, which was not he case in first example?

    Potentially, yes. You need to look at your local laws.

    It depends on the laws of Country A and if the competent authority (CA) is the tax authority. In some jurisdiction, it’s the financial intelligence unit (FIU) or financial services commission (FSC), which may or may not be independent from the tax authority (they usually are independent).

    The question then is whether the CA is obligated or even allowed to share information with the local tax authority.

    #3716

    mattoy
    Participant

    Would it also matter to the bank where you were born as written on your passport?

    #3720

    LP
    Participant

    Would it also matter to the bank where you were born as written on your passport?

    Maybe, its up to the bank. they will if it says US.

    They need to make a best effort to report to where you actually live. If they see you were born in Paris but you hand them a Dominican passport and don’t prove to them that you live outside of France they may well report to France to be safe.

    #3725

    Streber
    Keymaster

    Would it also matter to the bank where you were born as written on your passport?

    Ultimately, that’s up to the bank. In reality, it alone is almost never considered a factor for classifying a person as a potential resident or citizen of the country, except for US persons.

    You might be asked to show your other passport, though, if you have multiple citizenships.

    #3814

    ayers
    Participant

    Would it also matter to the bank where you were born as written on your passport?

    Ultimately, that’s up to the bank. In reality, it alone is almost never considered a factor for classifying a person as a potential resident or citizen of the country, except for US persons.

    You might be asked to show your other passport, though, if you have multiple citizenships.

    are you obliged to shows all passports you might have?
    do banks have the capacity to find out if you have a second passport you forgot to declare?

    #3828

    GCE
    Participant

    You cannot forget to declare a second citizenship. Using the services of tradional banks, usually you are filling bank forms with prescribed content, you are obliged to declare the actual circumstances. Otherwise you are deliberately declare false facts which is treated as a crime in EU countries.

    If you use online bank probably you will have more options not to disclose the info on your second citizenship.

    GCE - Company registration in Bulgaria from 160 EUR
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    #3839

    Streber
    Keymaster

    are you obliged to shows all passports you might have?
    do banks have the capacity to find out if you have a second passport you forgot to declare?

    At the end of the day, you are obligated to do whatever the bank tells you to do. Otherwise, they can refuse your application.

    No, the bank has no customary way of confirming your citizenship somewhere else. But if you’re for example Swedish and they suspect that, they can just consult the Swedish public registries.

    It’s generally a horrible idea to lie to a bank, though. It can end up a really difficult mess to get out of.

    #4009

    K12AN
    Participant

    So for example, If you are a Swedish Citizen but have been granted a residency Visa in the UAE.
    You open a bank account in the UAE using the visa details and UAE Tax Identification Number supplied – but clearly you are a Swedish Citizen from your passport details.
    Is the UAE Bank obliged to share our information to the Swedish Authorities, even though you have residency in the UAE?
    Are customers offered any protection that this would not happen? As you are a resident in the UAE and are opening at UAE account and this is not reportable under CRS (from my understanding).
    I guess my question is that if you are from a different nationality (i.e. different from residency) – would your county out nationality be informed as a precaution? Is this mandatory, discretionary or not permissible.

    #4013

    Robo
    Participant

    I guess my question is that if you are from a different nationality (i.e. different from residency) – would your county out nationality be informed as a precaution? Is this mandatory, discretionary or not permissible.

    From my perspective in most countries tax laws have nothing to do with citizenship. So question is why would you care if you are reported back to Sweden and it’s tax laws are not applicable to you? What can they do if you are tax resident in other country? Maybe tax authorities can try to prove you are tax resident in Sweden, but if you have done everything to become non tax resident in Sweden under Swedish law…

    #4014

    K12AN
    Participant

    Tax residency could be in UAE….but you could still be domicled in Sweden and therefore liable to pay income tax in Sweden on your global income.

    #4015

    Robo
    Participant

    Domicile usually means +183 day per year and then automatically tax residency. Stay less, have no close ties to Sweden and be happy tax resident in UAE.

    https://www.oecd.org/tax/automatic-exchange/crs-implementation-and-assistance/tax-residency/Sweden%20Tax%20Residency.pdf

    #4016

    tomas
    Participant

    Domicile usually means +183 day per year and then automatically tax residency. Stay less, have no close ties to Sweden and be happy tax resident in UAE.

    https://www.oecd.org/tax/automatic-exchange/crs-implementation-and-assistance/tax-residency/Sweden%20Tax%20Residency.pdf

    In Sweden an many other european countries it’s not that easy to become a non tax resident after having been a tax resident.

    #4018

    Robo
    Participant

    I guess it is relatively easy. Just completely dump all your previous life and get out.

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