Latvian bank account w/ seychelles company, when to close to avoid info exchange w/ EU?

[aurlux]

I have this question: As you all or most know, by end of 2017 Latvia will participate in the automatic exchange program and will send bank information to other EU countries about people who have bank accounts in their country.

What I would like to inquire about is that when one should close the bank account in Latvia to avoid completely having any personal info being sent to the country where they are supposed to be taxed?

I suppose if closing in the end of this year, no info at all will be available for the next year when info will be exchanged?

In any case I suppose many offshore bank account owners are interested in similar questions and I would like to have knowledge about this matter in general.

 

[JohnLocke]

You may want to have a look at this thread How do you keep anonymity with the Common Reporting Standard

 

[aurlux]

Great.
Any idea about the threshold of 250 000usd mentioned here, what would be considered as "new entity accounts", would that be account made after september 2017 or account made after 2016 january?

Any certainty about companies with income below 250 000usd not being reported anywhere?

https://www.oecd.org/ctp/exchange-o...unt-information-common-reporting-standard.pdf

 

[aurlux]

How do I determine if an account is considered pre-existing?
I found this info from the link above:
9.
The term
“Preexisting Account”
means a Financial Account maintained by a Reporting
Financial Institution as of [xx/xx/xxxx].
10.
The term
“New Account”
means a Financial Account maintained by a Reporting Financial
Institution opened on or after [xx/xx/xxxx].


As the dates have been X'd out, how do I get to know what is and isn't considered preexisting account?

 

[aurlux]

Info seems to be so that when the country signed the agreement(latvia in 2014 in this case), any company made after the signing is considered "new entity" and will be reported. The question remains if the country where the company is made is the country where the info will be sent, or will it be the country where the company's owner is living?

 

[negon]

As I read the provide information here on the forum, the information will be send to the country where the company is registered and not to the beneficial owners country.

 

[JohnSeed]

It would actually make it very interesting to buy a shell company! We just need a middle man for this purpose or an agent selling shell corps without changing the incorporation documents

 

[aurlux]

I am still unclear on my main question. When would one have to close an account to avoid personal info being sent abroad from the bank's country? For example if information exchange starts in third quarter of 2017, would the closing of account during summer be still reported?

 

[negon]

From how I read all of it there will be no reporting if you close the company before the reporting start. On top of this I read it as there is a triviality limit of certain amounts over 250k USD hold in personal accounts not corporate accounts. If the limit is really 250k I don't know but if that's the case and you hold a personal account below at least 100k per annum I can't see the problem.

Anyway, I would never hold a personal offshore account but always open the account in an offshore Seychelles companuy or a jurisdiction that don't share my information public.