Is CRS really used in a tax obligations enforcement?

[Romanxxx]

Everyone is talking about CRS. But does at least 1 case with fine because of CRS? I can't find something on this forum. Have you heard something about this?

 

[Forester]

thank you. everyone is talking about CRS. But does at least 1 case with fine because of CRS? I can't find something on this forum. Have you heard something about this?

Be advised that I am aware about a number of people being fined “because of CRS“; and even about some spending their time in jail (after having been sentenced for a tax evasion).

(The problem usually is that certain people act like thinking that taxmen are completely incompetent and lazy – in many cases, this is not true.)

 

[Romanxxx]

Be advised that I am aware about a number of people being fined “because of CRS“; and even about some spending their time in jail (after having been sentenced for a tax evasion).

(The problem usually is that certain people act like thinking that taxmen are completely incompetent and lazy – in many cases, this is not true.)

about what countries and amount of money you are talking about?

 

[Forester]

about what countries and amount of money you are talking about?

Various EU countries; amounts also vary, beginning with low 4 figures (for this you will not end in jail, probably), ending with 6 figures (there was some jail sentence, IIRC).

Of course, the aggresivity of taxmen varies across the EU.

 

[EliasIT]

You can go through some of my posts. In the Mentor Group, I have written much more detail about my case. I have received fines, and they have brought out the heavy artillery, including fabricated lies and made-up stories about what they claim I have done, which is complete nonsense. So far, my legal fees are around 80k EUR, and I am far from done. I chose to leave the country just to get some peace.

So, you haven’t searched this forum for cases, at least not thoroughly enough.

And I know there are more among us here in same situation.

 

[Romanxxx]

You can go through some of my posts. In the Mentor Group, I have written much more detail about my case. I have received fines, and they have brought out the heavy artillery, including fabricated lies and made-up stories about what they claim I have done, which is complete nonsense. So far, my legal fees are around 80k EUR, and I am far from done. I chose to leave the country just to get some peace.

So, you haven’t searched this forum for cases, at least not thoroughly enough.

And I know there are more among us here in same situation.

because of CRS? what country and amount of taxes is it?

 

[Forester]

because of CRS? what country and amount of taxes is it?

@Romanxxx , have in mind that these webpages are publicly searchable and indexed by all major search engines. Hence, do not expect an answer that is more detailed than e.g. my answer here https://www.offshorecorptalk.com/th...tax-obligations-enforcement.46594/post-329802 . As @EliasIT has written above, in Mentor Group you can eventually find more details, if interested.

 

[Sols]

Everyone is talking about CRS. But does at least 1 case with fine because of CRS? I can't find something on this forum. Have you heard something about this?

Yes, several.

 

[Radko]

The best thing to do is leave the country and kiss the CRS goodbye!

It's impossible to know which countries are checking the CRS information and which ones are not, unless you know someone that works for the Tax authorities.

 

[Don]

Everyone is talking about CRS. But does at least 1 case with fine because of CRS? I can't find something on this forum. Have you heard something about this?

Already in 2020, according to EU study:

• Bank deposits held in tax havens by residents of non-haven countries decreased by 11.8% after the implementation of the automatic exchange of information under the CRS.
• In the same period, cross-border bank deposits held in the U.S. increased significantly.
• The fact that the U.S. has not committed to the CRS might undermine the effectiveness of the CRS as tax evaders seem to relocate their deposits to the U.S.

 

[Recose]

Yes, several.

Which countries out of curiosity? All the cases I heard of thus far is in the EU

 

[Sols]

Which countries out of curiosity? All the cases I heard of thus far is in the EU

EU and non-EU.

 

[AnthonyR]

I've dealt with clients with HMRC enquiries about foreign income from Italy, India, Jersey and Switzerland. In each of these cases, the only way HMRC would have had this information on the clients was through information exchange arrangements such as CRS. So it certainly is effective for many countries.

 

[bbclenet]

There are still a few countries where law and its practical enforcement are not exactly the same . As for an example , In Morocco , who signed Crs in 2019 , I can warrant you the bank i ’m dealing with does not report any non resident account , they are not even equipped with the tools to provide their theorical obligations , and that s one of Morocco s largest bank . It may come one day of course , but things are always everlasting here , all the most when nobody finds an interest in completing such a task !
Of course dont rush banking in Morocco in french local banks ie Societe Generale and BNP cause I do suspect they re much closer to report !
Until proven otherly , banking in Morocco has been totally trouble free , and with a great service . Also , they have proven not to be curious at all ! And I m speaking of sizable amounts ! Just my 2 cents !

 

[JackAlabama]

not only crs but stolen data is used as well in this. Its only logical, why would they pass on such info.

 

[wellington]

Be advised that I am aware about a number of people being fined “because of CRS“; and even about some spending their time in jail (after having been sentenced for a tax evasion).

(The problem usually is that certain people act like thinking that taxmen are completely incompetent and lazy – in many cases, this is not true.)

True, talking to someone currently with 1.5m in crypto gains, thinking he can just move abroad to realize them and ignore exit taxes, just because friends can do.

CRS will get him, and there will be no sympathy in the court room, as you don't get sympathy for tax evasion.

 

[Delta]

Example:
Lets say I ve LLC in country without residency and withdraw money via didivends to my personal acc in same country but its in crs.
Not sure, if I ll be able to make personal acc without residency and would prolly need to use my main residency, where I live and that country is in crs group. Would there be any issues with tax office, even so its basically legally clean money?

 

[AnthonyR]

Example:
Lets say I ve LLC in country without residency and withdraw money via didivends to my personal acc in same country but its in crs.
Not sure, if I ll be able to make personal acc without residency and would prolly need to use my main residency, where I live and that country is in crs group. Would there be any issues with tax office, even so its basically legally clean money?

If you have reported and paid all taxes then there is no problem. The issue is that many people with international structures don't appreciate the complexity that they bring and lots of people assume crypto and/or offshore LLC exempts you from having to report and pay tax (and assume that it'll never be spotted so why "volunteer" to pay tax).

Specifically for this reason the UK (for instance) has a offshore penalty regime which can charge penalties based on up to 200% of the tax or have asset based penalties. It's designed to penalise those who are seen to use this kind of structure to evade taxes on the basis that HMRC will never find out.

 

[Delta]

If you have reported and paid all taxes then there is no problem. The issue is that many people with international structures don't appreciate the complexity that they bring and lots of people assume crypto and/or offshore LLC exempts you from having to report and pay tax (and assume that it'll never be spotted so why "volunteer" to pay tax).

Specifically for this reason the UK (for instance) has a offshore penalty regime which can charge penalties based on up to 200% of the tax or have asset based penalties. It's designed to penalise those who are seen to use this kind of structure to evade taxes on the basis that HMRC will never find out.

The core of question is actually, if I can pay all taxes in country, wheres offshore company but am not a resident (income tax, dividend tax for withdrawal or salary) or all/part in country of residency, if theres a double taxation agreement. Then I ll just report to tax office, where I ve residency, that everything was payed and clean, regardless the tax was 0 or 5%...