How works CRS with company and UBO diferents country

[jauser]

Hi there

I am considering open a company bank account on a licensed bank as I resume:

- I have a company registered in EU country A.
- My country of residence is in EU country B.
- I open company bank account in country A (registered company country).

At this point I understand that CRS require to Bank country A to report my company bank account openned to my residence country B; but?

Is it also directly reported (as a intern CRS) to TAX revenue country A the openned company bank account in country A ?

Or when a company/private customer bank account is opened within same country it is not directly reported to country A and this Tax Revenue will need ask for National Bank of country A to know if there are a bank account openned?

 

[Spinat]

If you open an account locally in your own country your account get reported to the local tax office IF that's mandatory in your country.

 

[jauser]

Hi @blueweb

But as I said, the account will be openned outside from my residence country and I am asking about country of registered company

 

[Martin Everson]

Hi there

I am considering open a company bank account on a licensed bank as I resume:

- I have a company registered in EU country A.
- My country of residence is in EU country B.
- I open company bank account in country A (registered company country).

At this point I understand that CRS require to Bank country A to report my company bank account openned to my residence country B; but?

Is it also directly reported (as a intern CRS) to TAX revenue country A the openned company bank account in country A ?

Or when a company/private customer bank account is opened within same country it is not directly reported to country A and this Tax Revenue will need ask for National Bank of country A to know if there are a bank account openned?

Your account in country A is reported to tax authority in country A who pass it on to tax authority in country B where you are resident. Banks DO NOT report directly to other countries tax authorities. They only report to their local tax authority who is then responsible for communication with corresponding tax authorities abroad.

In terms of opening an account and reporting to local tax authority in same country it is different for each country. In some countries banks are not required to report to local tax authorities where client and bank account reside in same country. In other countries they are required to do so.

 

[JohnLocke]

Hi @blueweb

But as I said, the account will be openned outside from my residence country and I am asking about country of registered company

most often you don't get taxed in the country where the company is registered but locally where you live! You need to proof the control and management of the company to be abroad in order to avoid to pay tax locally. It can be very difficult to do that without a real good tax lawyer.

 

[jauser]

I do not care about TAX from my EU residence country although they can know the banking movements... Only if TAX REVENUE where the company was registered will know automatically my company bank account movements

Being more clear and explicit:
I have a company outside my residence country what from 01-2018 until 12-2018 shows ZERO profit on corporate tax forms (as dormant but without being dormant), however in this company bank account I receive payments every week and I will close this bank account before than 12-2018


1) Will have the TAX revenue from the same country where the company and bank account was registered the automatic access to my bank movements ?

2) Or really they will need ask to National Bank if "a X company" have a bank account openned and to request to them all movements when may have a suspicion?

 

[Martin Everson]

Most banks have sophisticated CRS/FATCA software or software models running against their existing platforms. No matter what you do during the year it will be reported whether you have NO activity or some activity. Even if the bank account is closed after one week it will be reported. For 99% of banks it is an automated process and not some manual report that takes snapshot at end of year and supplies data. In plain English what you propose will NOT work. Ignorance is bliss I guess so keep trying to fool yourself that there is a way around it. You want to avoid reporting operate in non CRS country.

Btw bank account closure is not same as bank account deletion. Your bank account still exists for years after closure but is just flagged as closed on system but is still readily available to retrieve information from.

Sorry but it is not about trying to understand what you are saying but the fact you have no understanding of banking software or CRS. You are trying to make the facts fit your assertion and it won't work. In plain English you are unwilling to accept the truth.

 

[Spinat]

No matter what you do during the year it will be reported whether you have NO activity or some activity.

I agree with your last post. Howver the above is not in compliance with what Bank of Cyprus say. They claim that as long as the account is active and operated by a foreign company the account is not reported!

Do you think we can believe that?

 

[jauser]

Thank you for your answer @Martin Everson but you dont understand my question. My question is if the tax office country where I registered the company (outside of my country residence) will receive automatically the details of my openned bank account and movements from National Bank of his own country or if they need ask within of his country to national bank for this info.

CRS was designed to report to your residence tax office your openned bank account in other country different to your country residence and CRS don't apply when you open your bank account within of your country residence.

I know my tax office in my country could to request to national bank all my movements of a bank account opened within my country residence but this could not be automatic. However I know they will receive automatically my opened bank account details from the different country of my residence (THIS WAS YOUR ANSWER)

I.example, I live in Cezh Republic and I open a company bank account in Slovakia; How works the bank account reporting data in country residence and country where was registered the company?

A) My country residence: Cezh Republic will receive automatically the details of my company bank account in Slovakia

B) Country where was registered the company and opened bank account: Slovakia will consider your company as a "residence" so: Will receive automatically my company bank account data or could they to see it typing in his pc my company name?
Or they will need ask for this info to his National bank when may have a suspicion?

 

[footlocker]

Example:
A lives in Germany and register a company in Seychelles but is tax resident in the Netherlands?

How is that possible?

 

[jauser]

No. In you example would if Seychelles tax gov receive automatically your bank accounts details of your Seychelles company.

I mean to a "Intern CRS" of your company bank account. Others words to understand it:

- You live in Netherlands and you have a bank account in Netherlands so (Intern CRS); Will have the Netherlands government knowledge of the opening of your company bank account or will it need to ask the national bank of Netherlands for get it?

- Same question but having the company registered outside of your country: You live in Netherlands but you have a company in Germany and the bank account company in Germany:

a) (CRS) It's obvious that Netherlands tax gov will receive from National Bank of Germany your opened bank account according to CRS
b) (Intern CRS??) THE QUESTION: Will receive also automatically the Germany tax gov the bank account opened details plus all movementes from National Bank of Germany or German tax gov will need request to National Bank of Germany to know if you have a company bank account opened in Germany?

 

[JohnLocke]

Example:
A lives in Germany and register a company in Seychelles but is tax resident in the Netherlands?

How is that possible?

Because he is taxed from worldwide income and the Seychelles company is not considered to be controlled and managed in the Seychelles!