CRS & Tax Authority data matching?

[alwaysaint]

Hi Community,

I have a quesstion in regards to CRS and Tax authorities data matching.

If Customer A outside EEA registered all EEA EMI accounts using "his real ID + UK residential address + UK mobile", despite not being a tax resident there. By the end of the year, these EMIs will report A to UK. Will UK discover that there is no record of A being a tax resident in its own system, thus deducing that A provided a false residential address to the EMIs? How does CRS and tax authority data matching work?

Cheers,

 

[Martin Everson]

If HMRC finds no record of that person on their system having received data via CRS they will start by sending a tax return request to the UK address of the person. That will be first stage in determining what is happening.

Then when a tax return is not completed and returned on time then the fines and penalties start and will build up over time. This is all automated btw...lol.

From my experience I was a resident non-dom in UK for a short while and then left UK. I didn't bother change some bank addresses to my new address abroad. A tax return was sent to old address in London and the fines built up as I was not living there but in Bahamas and did not get the form. I later resolved issue as explained in another thread.

The important thing to remember is that nothing will happen if you get hold of the tax return form sent to you, complete it and call the HMRC hotline and explain i.e you did not update your address but have not being living in UK. But in any case once tax form is sent you must complete it.


P.S This was how it was over a decade ago. Today HMRC will look to find you on social media i.e FB, IG etc to see exactly what is what. HMRC is very high tech now believe it or not .

HMRC warns it will use social media to track down tax evaders

The UK's HM Revenue & Customs (HMRC) will "observe, monitor, record and retain internet data" which is available to everyone, including blogs and social networking sites where no privacy settings have been applied, it has specifically confirmed in an update to its guidance on criminal...

www.pinsentmasons.com

 

[alwaysaint]

Thanks @Martin Everson for sharing your experience. I saw your post before I post this one.

The difference is you were tax resident before but I don't even have a UK visa. To be more specific, 99% of the Chinese use UK virtual address for wise KYC (wise does CRS , doesn't it?) as wise doesn't issue cards to China. I wonder what does UK do with these people (they usually cancel the virtual address straight away after they got the card)? Maybe these people will have problem getting UK visa in the future?

I'm not living in China but I still used this way to obtain a UK wise card. I think it's better not to mess up with UK. I might transfer my KYC to Bulgaria less tax aggressive ?

 

[Martin Everson]

To be more specific, 99% of the Chinese use UK virtual address for wise KYC (wise does CRS , doesn't it?) as wise doesn't issue cards to China.

Well if Wise allows this then fine otherwise its fraud and would be an issue between Wise, VISA/MasterCard and FCA but not HMRC.

I wonder what does UK do with these people (they usually cancel the virtual address straight away after they got the card)? Maybe these people will have problem getting UK visa in the future?

Very unlikely anything would happen if no crime has been committed. UK is no US.....yet.

I might transfer my KYC to Bulgaria less tax aggressive ?

No idea here.