Paypal and exchange of information

[LisaSimpson]

I have found a page from Paypal describing exchange of information from Paypal with governments.

Be free to tell me what you think about it...

PayPal

 

[LisaSimpson]

It looks like the Automatic exchange reporting is similar for banks and Paypal. It means that in order to be safe, people should open a business Paypal account rather than a personal or premier (boosted personal) account.

 

[JohnLocke]

Thanks for this great share. It has been known since a long time they exchange data, but what let you think this is different for companies and business PayPal accounts?

The latter will exchange this information with the U.S. Internal Revenue Service if FACTA Law applies and/or, if CRS Law applies, with the competent authority or authorities of your respective country or countries of tax residence that are participating jurisdictions under CRS Law.

 

[LisaSimpson]

Thanks for this great share. It has been known since a long time they exchange data, but what let you think this is different for companies and business PayPal accounts?

I have asked Paypal. They told me the CRS reporting procedure was different for People and Companies.
Business account: Reported to where the company resides
Personal account: Reported where the paypal account owner resides.

 

[LisaSimpson]

I have asked paypal: Business account reported to where business resides. Personal account reported to where the individual resides.

 

[suzy]

I have asked paypal: Business account reported to where business resides. Personal account reported to where the individual resides.

Thanks for clarification. So if you have the Company in the same country as you residency you get reported anyway!?

 

[negon]

It seems that's how it works..

 

[cutmetwo]

so what you guys say here is that paypal will echange all my information right?

 

[LisaSimpson]

so what you guys say here is that PayPal will exchange all my information right?

If you have a personal account yes. The government where you are a fiscal resident will receive information about your paypal account.

 

[LisaSimpson]

I am sorry I have the ideas in my mind but now on the paper. Paypal considered itself like a bank. It means they will provide all the information that banks usually give to government in the context of the automated data exchange of financial information from the OECD. In other words, in few years, if you have a personal PayPal account, wherever you are on earth, your government will know the money you earn from PayPal. In other words, entrepreneurs will not be able to start with a personal paypal account. They will have to start with a business paypal account not to have problems.

 

[diablo]

Paypal considered itself like a bank.

they are a registered bank in Luxembourg for that reason they are reporting your account to the local tax authorities, rest assured about that!

 

[anotherone]

they are a registered bank in Luxembourg for that reason they are reporting your account to the local tax authorities, rest assured about that!

Then, according to CRS, The luxembourg authorities transfer the data to countries from the OECD.