On the
CRS reporting process, see this quote from the
CRS Implementation Handbook (Pages 7-8) [emphasis added]:
"
The automatic information exchange framework
4. Figure 1 depicts the automatic exchange framework for reciprocal information exchange under the Standard.
In broad terms, financial institutions report information to the tax administration in the jurisdiction in which they are located. The information consists of details of financial assets they hold on behalf of non-resident taxpayers and the income derived therefrom. The tax administrations then exchange that information with the jurisdiction(s) of residence of the taxpayer."
On whether
Germany reports to Malta under CRS:
On whether
N26/
Germany will report to Malta after the
tax residency is changed to Malta from country X, that will depend on different things, e.g. whether the account is a reportable account, whether the controlling person is a reportable person, etc., but also whether N26 is told of the change by the account holder,
OR if N26 detects evidence of that change in some other way. The CRS Implementation Handbook says (Pages 76-78) [emphasis added]:
"165. If the Financial Institution knows or has reason to know that the Documentary Evidence is unreliable, including as a result of a change in circumstances, then that Documentary Evidence cannot be relied upon. Therefore, either the residence address test cannot be used in the first place or, if it is as a result of a change in circumstances, the Financial Institution has until the later of the last day of the reporting period or 90 days to obtain a self-certification and new Documentary Evidence. If this is not obtained then the electronic indicia search must be completed (see below).
...
167. Where the conditions are not met for the residence address test, or where the jurisdiction does not allow for its use, then the electronic search must be carried out. Under the electronic record search, the Reporting Financial Institution must review its electronically searchable data for any of the following indicia (these are a series of factors that indicate where an Account Holder is resident):
1. identification of the Account Holder as a resident of a Reportable Jurisdiction(s);
- current mailing or residence address in a Reportable Jurisdiction(s);
- one or more current or most recent telephone numbers in a Reportable Jurisdiction(s) and no telephone number in the jurisdiction of the Reporting Financial Institution;
- current standing instructions (other than with respect to a Depository Account) to repeatedly transfer funds to an account maintained in a Reportable Jurisdiction(s);
- currently effective power of attorney or signatory authority granted to a person with an address in a Reportable Jurisdiction(s); or
- a current “hold mail” instruction or “in-care-of” address in a Reportable Jurisdiction(s) if the Reporting Financial Institution does not have any other address on file for the Account Holder.
168. If any of the indicia listed are discovered in the electronic search, or if there is a change in circumstances that results in one or more indicia being associated with the account, then, the Reporting Financial Institution must treat the Account Holder as a resident for tax purposes of
each Reportable Jurisdiction for which an indicium is identified, unless it elects to apply the curing procedure and one of the exceptions subsequently applies (see below)."
