UK - reduction of automatic exchange of information with the EU

[gnud]

Beginning with this year, the UK has significantly reduced the scope of information that's being shared with the EU. The HMRC decided to drop the DAC6 reporting of cross-border arrangements almost entirely, to only arrangements with hallmarks of category D (arrangements that involve non-transparent legal or beneficial ownerships).

https://www.gibsondunn.com/dac-6-update-uk-narrows-scope-of-mandatory-reporting/
So does this mean if an EU resident creates an UK LTD with a Wise account, this will not be reported to his country of residency, since it's not an obscure entity and Wise is an EMI, not a bank?

 

[Jerry1911]

Beginning with this year, the UK has significantly reduced the scope of information that's being shared with the EU. The HMRC decided to drop the DAC6 reporting of cross-border arrangements almost entirely, to only arrangements with hallmarks of category D (arrangements that involve non-transparent legal or beneficial ownerships).

https://www.gibsondunn.com/dac-6-update-uk-narrows-scope-of-mandatory-reporting/
So does this mean if an EU resident creates an UK LTD with a Wise account, this will not be reported to his country of residency, since it's not an obscure entity and Wise is an EMI, not a bank?

You do realise that the UK companies registry is totally public including UBO details?

 

[gnud]

You do realise that the UK companies registry is totally public including UBO details?

Yes. But there’s nothing that actually identifies you, no passport number, no tax id, no exact address. Unless you keep receiving money from your company directly, and it comes under investigation, nobody will link some Jerry in a public register with you.

Moreover it’s possible to only search by company name, number or officer name, not date of incorporation, so no one can scan it for newly created companies.

Pay your local sole proprietorship through a Delaware LLC subsidiary or a freelancing site and you should be good.

For extra protection get a residency in a country outside the EU like Montenegro or Serbia and put it there.

And for exxxtra protection get a second citizenship and put it there too.

 

[CaptK]

You are required to give your residential address which can be hidden on the main page but can be bought when you either do a credit check.
Plus Wise will require your home address details.

I Understand your thinking but better to be safe than sorry.

 

[gnud]

Yes there are ways to uncover it, but will it happen if you take precautions like not paying yourself directly or not at all ...

You think people with residency in Monaco actually live there ... ?

 

[Martin Everson]

Moreover it’s possible to only search by company name, number or officer name, not date of incorporation, so no one can scan it for newly created companies.

You can search for newly created company by searching for date of incorporation after downloading for free latest snapshot of entire registry database in CSV format from companies house below:

http://download.companieshouse.gov.uk/en_output.html

So does this mean if an EU resident creates an UK LTD with a Wise account, this will not be reported to his country of residency, since it's not an obscure entity and Wise is an EMI, not a bank?

Right now yes but Wise is still evaluating this and being that they are a UK listed company its likely they will join CRS to avoid scandal or bad publicity. Wise will sadly act like any listed company meaning share price is God and customers belong under the buses wheels.

----- quote start

Will you report my transfers to the tax authorities?

Wise Limited (Wise) is a UK company authorised by the Financial Conduct Authority as an Electronic Money Institution. We are still evaluating the impact of the Common Reporting Standards, including FATCA, to our business and how we will adopt the new requirements. At this time we are not reporting this information to HMRC or any other tax authority.

---- quote end

 

[ernestdezoe]

Yes. But there’s nothing that actually identifies you, no passport number, no tax id, no exact address. Unless you keep receiving money from your company directly, and it comes under investigation, nobody will link some Jerry in a public register with you.

To be pedantic about it , it depends on how rare is your name/surname and DOB

 

[Martin Everson]

To be pedantic about it , it depends on how rare is your name/surname and DOB

Two people with same date of birth and name/surname I would say is quite rare .