CRS and reporting under 10K Euro!

[boomy]

I have seen many threads and posts around CRS and reporting accounts under 10K euros.

People ask:

• Is there a lower limit for when the banks report to the tax authorities?
• Will my account information be reported to the IRS if I do not use my offshore account?
• Will my account be reported if I have only had one transaction of less than 5000 euros?

To all those questions I can answer now, YES THEY DO. Everything is reported if you have only created an account then it goes to your local tax authority.

CRS is effective, you must NEVER set up an account anywhere in your own name, as far as possible get dual citizenship or make sure you can get under the "184 days" rule - I have just been hacked into 3 different accounts and the two of them at Mister Tango.

Let it be said, the game has become more difficult.

 

[Fraction]

CRS , IRS ... It looks like a combination of FATCA and CRS

The simplest way to avoid CRS :
- open bank account in March and close it in October (the same year). The reported balance will be zero.
- use non-crs country like Armenia, Serbia.
- change your tax residency: go somewhere above 183 days, change your center of vital interest

FATCA has a $10000 threshold , accounts under CRS are reported even with zero balance.

 

[disconnected]

If you have bank accounts in other countries with a local address how can they report you to your country of residence... The bank doesn't even know your country of residence.

 

[johndunham]

Your country of residence is of no importance. It's all about your citizenship. The bank will report.

 

[disconnected]

So what if you don't live in your country of citizenship and are not a tax-resident there?

 

[JackAlabama]

Your country of residence is of no importance. It's all about your citizenship. The bank will report.

correct in the opposite form.

 

[Sols]

Your country of residence is of no importance. It's all about your citizenship. The bank will report.

Just to add to what @JackAlabama said, reporting can be based on citizenship in tie-breaking scenarios or when there is doubt. But the general rule under CRS is to report based on tax residence, regardless of nationality.

 

[foxmulder]

If you have bank accounts in other countries with a local address how can they report you to your country of residence... The bank doesn't even know your country of residence.

Banks ask you to fill a form when you want to open an account.They also take a copy of your passport so they can determine your citizenship.

 

[aage]

OP

• Is there a lower limit for when the banks report to the tax authorities?

you mean NO or YES - I don't understand it?

 

[lostguy]

What you mean is they report everything from the very beginning of account opening to balance. If you don't have balance they still report?

 

[foxmulder]

What you mean is they report everything from the very beginning of account opening to balance. If you don't have balance they still report?

As far as i know if your 31.12 balance is zero they report "0" amount.But according to a statement from OECD i see some countries report the average balance of the account.

 

[boomy]

one of my accounts had ZERO balance from start to end, yet they are reported!

 

[foxmulder]

one of my accounts had ZERO balance from start to end, yet they are reported!

If you have an account they re reporting the year end balance whether you have posiitve balance or not.But at least most of the reporting countries only report the year end balance of the account that means if you dont have any money on your account at the end of the year there wont be any solid evidence against to you in your home country.

 

[Samman Kaseeb Sleiman]

- open bank account in March and close it in October (the same year). The reported balance will be zero.

Why are March and October in particular?

 

[boomy]

Still I got reported which made the tax man suspicious and asking questions!

 

[Jerry1911]

Still I got reported which made the tax man suspicious and asking questions!

Really? What exactly did they ask? Which country are you resident of?

 

[Untangle]

So what if you don't live in your country of citizenship and are not a tax-resident there?

Does not matter, they will have your info but since you are not resident, you don't have to declare it in your tax returns, since you are not resident and don't declare revenus here, unless you do draw income (from rent for example), even that, you would not have to declare your foreign bank account. But if you owe them taxes, they might go after your foreign account, even if not tax resident (especially in Europe).

Your country of residence is of no importance. It's all about your citizenship. The bank will report.

That is incorrect. In Europe a bank account will be reported to your country of citizenship but also country tax authorities based on the address you provided to the bank. Most will also ask for your tax number.
So the bank will report to both countries. Even if you use a phone number for another country, they will also report in that country.
Say you are french, open a bank account with N26. But you live Belgium but provided a UK number.
N26 will report to France, UK and Belgium. They will also ask you for your Belgian tax ID.
Back today all bank accounts opened in Europe, are shared on a central database (except UK accounts). So any EU country tax office can run your details against that database, without having to wait for the bank declaration or your own self declaration.

 

[wojtem]

Your country of residence is of no importance. It's all about your citizenship. The bank will report.

Not true

 

[Hyacinth]

Everything is reported! Let me tell you what happened to me. They fiscal authorities are just waiting to process the data or for it to go over a certain amount and snatch you with years of interests .

Back in 2010 to 2012 I had a bank account in a Western European country (where I had citizenship), the bank only knew my local details, I moved to another country (another citizenship) and changed my residency locally somewhere in Eastern Europe. 1 year later, the local country fiscal authority sent me a letter informing me that I had to pay tax on the "interests" i had received from that bank (amount of around 2000 euros which have been there way before I moved my residency and didn't touch it, I simply forgot about it) - The interest was a few euros and the tax i had to pay was a few euros.
In Western Europe the law was that you didn't have to pay anything if it was under X amount however I was shocked that the data was already available back then without me informing the bank or the local authority of any change. I was also asked to provide "proof from the account" and to calculate what I owed them (if they knew, why did they ask me this?)

This just informed me that states have bilateral agreements which possibly exist even for outside Europe and that it doesn't really matter which citizenship or nationality you have because it might be sent anyway.
Online, any bank or fintech account you might open, if it's on your name, it will be linked to you and fiscal authorities will have access to it.
Sometimes I'm thinking that all these laws are not meant to stop financial irregularities for big companies but as all laws eventually get to block the lower to middle class population from having any freedom and privacy. It's just a joke gone bad.
Crypto is not safe either, it seems that the only thing left is to get cash - But even that's a problem, because most countries limit the amount of cash you can "handle" as a company per day!

 

[pixbix]

If you have bank accounts in other countries with a local address how can they report you to your country of residence... The bank doesn't even know your country of residence.

from your passport, the "TAX residency'" is a new field.

the stupid girl working at the bank won't ask/tell you , but if you give them an italian passport to open an account in romania (just an example), she will select at tax residency italy, and put your passport info there , after she will write your romaian address

So what if you don't live in your country of citizenship and are not a tax-resident there?

you need to change that info or they will "assume " some banks just send 0000000000 if they don't know your tax ID number

Really? What exactly did they ask? Which country are you resident of?

in Romania they will lie. "We know about your transactions in your foreign account. We can see each payment you received". Please complete this paper and also print on paper the bankstaments from last 5 years . do it very quickly to not be punished. i just want to help you! ,so report yourself as quickly as possible before this will be given to an agent for investigation"

owever I was shocked that the data was already available back then without me informing the bank or the local authority of any change. I was also asked to provide "proof from the account" and to calculate what I owed them (if they knew, why did they ask me this?)

Because they only received the end year account balance. Do you think banks will risk their license for sending private information that is not necessary ? it's the exact lie they say here in romania, so they can fish people and get comissions, yeah IRS guys get bonuses for hunting down people.

Online, any bank or fintech account you might open, if it's on your name, it will be linked to you and fiscal authorities will have access to it.
Sometimes I'm thinking that all these laws are not meant to stop financial irregularities for big companies but as all laws eventually get to block the lower to middle class population from having any freedom and privacy. It's just a joke gone bad.
Crypto is not safe either, it seems that the only thing left is to get cash - But even that's a problem, because most countries limit the amount of cash you can "handle" as a company per da

no no no. only by law. if they get anything outside any law/regulation , you can fight it in court and win.