Possible to avoid CRS with USA setup?

[Belfort]

An european individual opens a US LLC and a personal US bank account with a debit card. Funds come to the LLC's bank account and moved as dividends to the personal account. Then, the individual spends money with the debit card in the EU.

How does the EU country this individual is a tax resident in know about their funds in the US? Most they can know is how much they're spending, right?

 

[Marzio]

How does the EU country this individual is a tax resident in know about their funds in the US?

Every foreign owned US LLC has to file form 5472 and nobody knows how IRS will use that data. It could be that they will never share anything or it could be that they will share only with some countries or it could be that at some point they will start sharing with all their partners.

 

[drysponge]

How does the EU country this individual is a tax resident in know about their funds in the US?

fatca igas are mutual exchange (sometimes)
see https://home.treasury.gov/system/files/131/FATCA-Agreement-Germany-5-31-2013.pdf article 6, 4

a) The United States commits to establish, by January 1, 2017, for reporting with
respect to 2017 and subsequent years, rules requiring Reporting U.S. Financial
Institutions to obtain and report the German TIN of each Account Holder of a
German Reportable Account as required pursuant to subparagraph 2(b)(1) of
Article 2; and
b) The Federal Republic of Germany commits to establish, by January 1, 2017,
for reporting with respect to 2017 and subsequent years, rules requiring
Reporting German Financial Institutions to obtain the U.S. TIN of each
Specified U.S. Person as required pursuant to subparagraph 2(a)(1) of Article

certain countries do not have mutual exchange in their fatca agreements but would likely get the information on request

 

[daniels27]

FACTA reports from banks which contain all details for most EU counties. If you are the signor or own the personal US bank account, they will report to Germany if you opened it with a German tax id.

 

[Don]

An european individual opens a US LLC and a personal US bank account with a debit card. Funds come to the LLC's bank account and moved as dividends to the personal account. Then, the individual spends money with the debit card in the EU.

How does the EU country this individual is a tax resident in know about their funds in the US? Most they can know is how much they're spending, right?

Heres how:
https://www.justice.gov/opa/pr/cour...eking-information-about-dutch-residents-using

 

[daniels27]

Heres how:
https://www.justice.gov/opa/pr/cour...eking-information-about-dutch-residents-using

Yes, but that was @JohnnyDoe. This John Doe is dangerous. He even defrauded Hamilton Reserve Bank:
https://iapps.courts.state.ny.us/nyscef/DocumentList?docketId=WepzwtqKjNYUMLMyRiqlaA==&display=all&courtType=New York County Supreme Court&resultsPageNum=1
Hamilton Reserve Bank Ltd. et al v. John Does 1 to 10

 

[Dandyline]

An european individual opens a US LLC and a personal US bank account with a debit card. Funds come to the LLC's bank account and moved as dividends to the personal account. Then, the individual spends money with the debit card in the EU.

How does the EU country this individual is a tax resident in know about their funds in the US? Most they can know is how much they're spending, right?

They will probably never know. As long as they don't investigate you.