CRS reporting on EU

[skyper]

Hi boys,

I was documenting on the CRS which should automatically communicate the current account balance to the tax authority of each individual country.

I wonder if this automatism occurs by default or if indeed if every bank does what it wants. The TIN is the only indicator that can make an individual unique in Europe.

So basically how does it work? A citizen opens an account in Europe. He fills it in and eventually the tax authority proceeds to investigate if it notices that the tax payment is not due? Do you have information for Italy?

Thankyou

 

[Sols]

CRS is automatic.

The banks report to a local central authority which distributes the data to its counterparties in other countries.

 

[Dandyline]

CRS is automatic.

The banks report to a local central authority which distributes the data to its counterparties in other countries.

He is wondering how each country are able to identifying the person being reported, if the country don't have a system with Social Security numbers and so on.

 

[chaltron]

CRS reports also more information, like Address, Identification Number / Passport and Date of Birth, so it doesn't rely only on Tax ID.

 

[Sols]

I was documenting on the CRS which should automatically communicate the current account balance to the tax authority of each individual country.

I wonder if this automatism occurs by default or if indeed if every bank does what it wants. The TIN is the only indicator that can make an individual unique in Europe.

So basically how does it work? A citizen opens an account in Europe. He fills it in and eventually the tax authority proceeds to investigate if it notices that the tax payment is not due? Do you have information for Italy?

Reporting is primarily done based on TIN, which you provide to the bank. However, banks are also obligated to look at other things such as address, citizenship, phone number, and in some cases transaction profile (where you send/receive money) and IP address used for logins. It depends on the bank. Most report only on TIN.

If a country does not have a TIN, other data points are used.

He is wondering how each country are able to identifying the person being reported, if the country don't have a system with Social Security numbers and so on.

Thanks, it wasn't easy to understand.

 

[skyper]

He is wondering how each country are able to identifying the person being reported, if the country don't have a system with Social Security numbers and so on.

Sorry if I didn't make myself clear.

I wanted to understand if a bank that allows you to keep cryptocurrencies goes to declare the value of the account via CRS or if these are excluded.

In my state we pay taxes when "we exit the investment" so if I keep cryptocurrencies (stable coin) in the bank I should not necessarily pay the capital gain. It's correct?

The bank should not communicate the total in the account as there are no FIATs. It's correct?

 

[palermo55]

Sorry if I didn't make myself clear.

I wanted to understand if a bank that allows you to keep cryptocurrencies goes to declare the value of the account via CRS or if these are excluded.

In my state we pay taxes when "we exit the investment" so if I keep cryptocurrencies (stable coin) in the bank I should not necessarily pay the capital gain. It's correct?

The bank should not communicate the total in the account as there are no FIATs. It's correct?

wrong because you sold for stable it's the same as fiat and you will be taxed
if you don't want to pay taxes open a company and move crypto from it

 

[skyper]

wrong because you sold for stable it's the same as fiat and you will be taxed
if you don't want to pay taxes open a company and move crypto from it

Don’t misunderstand me. I want to pay taxes but was actually wondering if stable are like fiat so you need to pay in the current fiscal here.

 

[disconnected]

wrong because you sold for stable it's the same as fiat and you will be taxed

No it isn't, stablecoins are crypto. Look at Nexo for example, if you transfer EUR to them, they immediately convert this to EURx (stable eur) in order to circumvent regulations legally because they don't have a banking license.

 

[skyper]

No it isn't, stablecoins are crypto. Look at Nexo for example, if you transfer EUR to them, they immediately convert this to EURx (stable eur) in order to circumvent regulations legally because they don't have a banking license.

@disconnected so you are confirming my option? If i keep cryptocurrencies in a bank they will not told the tax authority the amount of the bank account?

 

[Dandyline]

@disconnected so you are confirming my option? If i keep cryptocurrencies in a bank they will not told the tax authority the amount of the bank account?

You dont keep crypto in a bank, i think you are talking about a crypto exchange.

Crypto exchanges doesn’t report under CRS.

 

[skyper]

You dont keep crypto in a bank, i think you are talking about a crypto exchange.

Crypto exchanges doesn’t report under CRS.

You're wrong, there are many banks that custody crypto: Seba Bank, Bank Frick or Sygnum Bank. They offer you a real wallet where you can store cryptos.

 

[Dandyline]

You're wrong, there are many banks that custody crypto: Seba Bank, Bank Frick or Sygnum Bank. They offer you a real wallet where you can store cryptos.

Just store it outside the banks.

 

[disconnected]

@disconnected so you are confirming my option? If i keep cryptocurrencies in a bank they will not told the tax authority the amount of the bank account?

Your best bet is to contact them and ask if they report under CRS. Also, it depends on the country you are a resident of whether it's an issue or not. Portugal for instance doesn't consider crypto as currency, so it's not reportable.

 

[skyper]

Your best bet is to contact them and ask if they report under CRS. Also, it depends on the country you are a resident of whether it's an issue or not. Portugal for instance doesn't consider crypto as currency, so it's not reportable.

Yes, i think that the easiest way is contacting them. I will update here as soon as they answer me.