How to Avoid CRS - 3 Options as of 2019

[Fred]

As already mentioned UAE is the simplest way. It don't require much time and as time is money I even think it's the cheapest way.

Just setup your company in UAE get your residence VISA and open a local company bank account. For that you even don't need a utility bill. Just mention hotel were you stay during your trip.

As the account is opened with the residence Visa - no CRS reporting at all. Just stay in the country you are and once your business is big enough or you have saved enough money inside the company - move for 2-3 years to UAE to legitimate the funds.

Especially in 2021 the best solution for high tax EU country passport holders to have there feet between the door should it come that bad inside EU as forum users like @Martin Everson believe.

 

[rey skywalker]

dubai is so easy any more check bloomberg of yesterday they fine 11 banks yesterday

 

[extremedox101]

by opening a UAE account you support global jihad
- - -

don't see the relevance here. not all camel riders are devoted islamists.

 

[CoinMaster]

As we consider the future compared to when the last post in this thread was made and everything was good, what are our options now? Dubai seems to be dead for most people, doesn't it?

 

[offshorinator]

any updates for 2024 ?

 

[DerAufklaerer]

no EU EMI use until jan 2026 because DAC8 ?

 

[lagloriacubana]

any updates for 2024 ?

Here is the latest I found on UAE Official Website:
https://mof.gov.ae/wp-content/uploa...tes-for-the-Common-Reporting-Standard-CRS.pdf

From what I understand, there are supposed to be enhanced due diligence & indicia for high value accounts and accounts being opened for Visas with validity of 5 years or more.

I don't know how it goes in practice but will be researching it lot more and how to get around it - but that's a topic for later. It seems quite easy to avoid most indicia:

(a) identification of the Account Holder as a resident of a Reportable Jurisdiction;
(b) current mailing or residence address (including a post office box) in a Reportable Jurisdiction;
(c) one or more telephone numbers in a Reportable Jurisdiction and no telephone number in the jurisdiction of the Reporting Financial Institution;
(d) standing instructions (other than with respect to a Depository Account) to transfer funds to an account maintained in a Reportable Jurisdiction;
(e) currently effective power of attorney or signatory authority granted to a person with an address in a Reportable Jurisdiction; or
(f) a “hold mail” instruction or “in-care-of” address in a Reportable Jurisdiction if the Reporting Financial Institution does not have any other address on file for the Account Holder.

The only thing which REALLY concerns me is this:

Relationship Manager Inquiry for Actual Knowledge. In addition to the electronic and paper record searches described in subparagraphs C(1) and (2), the Reporting Financial Institution must treat as a Reportable Account any High Value Account assigned to a relationship manager (including any Financial Accounts aggregated with that High Value Account) if the relationship manager has actual knowledge that the account is held by a resident for tax purposes in a Reportable Jurisdiction.

I wonder what actually defines as ACTUAL KNOWLEDGE. And, when can they rat you out and what must never be spoken.

That's a question for plato and something I intend to research later as things progress for me.

 

[lagloriacubana]

And, it seems UAE now gives 5 year visa for self-sponsorship residency - https://u.ae/en/information-and-ser...e-visas/residence-visa-for-working-in-the-uae

Even though the person I talked to said it is for 2 years... So I wonder how to handle if they ask previous tax residency and if they report it even if you open account in first half of year and are not a tax resident.

 

[lagloriacubana]

I don't know how to edit my last post but it seems Singapore CRS Guidelines go much more in-depth into the role of Relationship Manager's Actual Knowledge: https://www.iras.gov.sg/media/docs/...standard_e-tax-guide-2.pdf?sfvrsn=58627c6a_35

The Relationship Manager also has an important role in identifying any change in circumstances in relation to a High Value Account. A Reporting SGFI must ensure that it has procedures in place to capture changes that are made known to the Relationship Manager in respect of the Account Holder’s Reportable status.

A Reporting SGFI must implement procedures to ensure that a Relationship Manager identifies any change in circumstances of an account. For example, if a Relationship Manager is notified that the Account Holder has a new mailing address in a Foreign Jurisdiction, the Reporting SGFI is required to treat the new address as a change in circumstances and, if it elects to apply the curing procedure described in Section 10.4.4.e above, the Reporting SGFI is required to obtain the appropriate documentation from the Account Holder.

If I understood it correctly, it simply means if you report circumstances that can trigger CRS to your relationship manager that has to be reported.

Well, I am just trying to imagine what can happen e.g. when someone is using his card for withdrawing cash from ATMs in some country... whether Relationship Manager decide this person might be tax resident there and needs to be reported...

 

[tacokai]

no EU EMI use until jan 2026 because DAC8 ?

What does that mean ?