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Bank account for Georgian company
- Thread starter MrTony
- Start date
If you have a compoany in Georgia and open an account with Transferwise, what happens with CRS?I mean let's say that I'm resident in Spain, does TW report to Spain that I control a bank account for a Georgia company with xx money on it?
I've read on the forums, but might be wrong, that TW reports if you have a turnover > than 20.000 USD
How can they report you if they dont ask for your Tax Identification Number?
They need it to make reports.
https://transferwise.com/help/17/borderless-account/2932394/borderless-accounts-and-tax
I get your point, I read so many things in the last few days on the forums that I might have get it wrong, let's wait for someone with more experience than me
Georgia is bonding more and more with EU and at some time they have to follow OECD rules. CRS will come sooner or later also within Georgias banks for sure... it's only a matter of time.
I don’t think this will happen in next 10 yrs. This is clearly not in the interest of Georgian government.
Lol, Uncle Sam squeezing balls of banks across the globe with all this FATCA crap was not in the interest of those respective governments either. The world has changed and will keep changing.
Yes, but they are promoting Georgia as onshore jurisdiction with offshore benefits. This is the sole reason why people bank there. If they join CRS it would affect FDI and banking sector which is strongest compared to all other business sectors.
At this point the tendency is such that the correct way to say it is "This is the sole reason why people bankED there". Banking for foreign owned companies in Georgia is getting ever more difficult. The above mentioned promotion of Georgia is rapidly dying without even having been properly born.
EMIs can be quirky at times too. For example, I had an account with TW and was expecting a transfer from a russian company. They not only blocked the transfer, but also closed the account consequently because, they said, the sending company was under sanctions in Ukraine. Even though TW has nothing to do neither with Ukraine, nor with Russia and freaking out about a company being sanctioned internally in a 3rd party country is at least weird. Another example is that far not all EMIs support currencies one may need.
Although I do not live in Georgia full time any more I think joining CRS will not be a major blow if they eventually join.
Depends. If it becomes much more difficult to open a bank account in there, it might be a hit on their customer acquisition for the banking sector. Today EU banks have insane requirements on residency proofs etc.
Not exactly true. TW is a British company, and Britain (as part of the EU) adheres to the EU foreign policy, including the EU sanctions list. Here is a list of 500 Russian companies on various sanctions lists that were created because of Russia's war against Ukraine. Banks and other financial companies have to comply with the laws of their jurisdiction.
I heard about Germans (I don't know such fools personally) who only open a bank account in Georgia to hide their money there because they think: No CRS and reporting, my money is invisible.
I bet my a*s they will get in trouble in some years. Such fools are also hurting in long term the reputation of Georgia and their banking sector... so I would rather say it is in long-term interest for Georgia to be a little bit more transparent.
Somewhere else I've read that Georgia already signed CRS but it is only not applied nowadays.
Also don't forget about cooperation on manual look up and information exchange which is also often written in double tax treaties. It's no automatic exchange but some people also forget about that.
I bet my a*s they will get in trouble in some years. Such fools are also hurting in long term the reputation of Georgia and their banking sector... so I would rather say it is in long-term interest for Georgia to be a little bit more transparent.
Somewhere else I've read that Georgia already signed CRS but it is only not applied nowadays.
Also don't forget about cooperation on manual look up and information exchange which is also often written in double tax treaties. It's no automatic exchange but some people also forget about that.
The sending company was/is not on the list. It is just a social network, access to which was banned in Ukraine. This is what TW referred to as “under sanctions in Ukraine” and this certainly was not legally preventing TW from receiving transfers from that company. So in that particular situation it was a TW’s quirk.
OK, in that case it was the "dread effect", i.e. they won't touch it "just in case". In a similar way, Russian oligarch billionaire Boris Rotenberg has been kicked out by Scandinavian banks, because he is on the U.S. sanctions list (but not on the EU list).
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