Wise is now CRS compliant

[karishi]

It depends on the jurisdiction.

USA IBKR is not CRS compliant.

yeah, but you can't open an account with IBKR USA if you have a proof of residence from EU

 

[LongShanks]

In any case my advice is:
1) since you have not been investigated so far, lay low. In Italy they have been announcing crackdowns for 30 years. It's a scare tactic. Don't fall to it and turn yourself in. Do not buy anything fancy ( which in spain I think it is anything over 2k ). Keep everything as usual.
2) stop doing what is risky
3) think about a different set up. Rmember that in any case you are a non spanish people paying taxes in Spain: before coming after you, they have much easier targets, spanish citizens.

All valid points which I will ponder on and although I perceive myself reasonably apt at getting my ducks in row, we all knew the kid that always got sprung cheating in school, right.??

Well…, quite often that would have been me…

Taught me about consequence when the teachers ruler met my hands, so not all bad.

But my instinct at finding and timing an exit is my trademark and I believe the time to inject (into the system) may have arrived.
Still somewhat ambivalent.

Presently more on the lookout for avoiding- rather than evading possibilities and can report that I have located a very decent one indeed.
Will advise once the storm has passed.

Cheers for now.

PS : 2K eh…LAUGH !! Not far off

 

[karishi]

All valid points which I will ponder on and although I perceive myself reasonably apt at getting my ducks in row, we all knew the kid that always got sprung cheating in school, right.??

Well…, quite often that would have been me…

Taught me about consequence when the teachers ruler met my hands, so not all bad.

But my instinct at finding and timing an exit is my trademark and I believe the time to inject (into the system) may have arrived.
Still somewhat ambivalent.

Presently more on the lookout for avoiding- rather than evading possibilities and can report that I have located a very decent one indeed.
Will advise once the storm has passed.

Cheers for now.

PS : 2K eh…LAUGH !! Not far off

if you start paying taxes on your extra income from now on, nobody will notice, you will be paying more taxes, which is not what triggers alarms in the system. The opposite is what usually trigger alarms. Do whatever puts you in a situation where you are comfortable sleeping at night, everybody has different risk profiles. For sure, if you start paying taxes correctly, if you ever gets a visit from the hacienda, the worse it can happen is a fine for past misdeeds. Even if you go to court, you can settle, they are after the money, not seeing you in prison. good luck!

 

[Piano]

Transaction above 10keur will be reported to your country of residence.

Some Belgian citizen created a fee months ago a new personal wise bank account and after one month it was already linked and visible to his online government account where all bank accounts and 6 month ending balance of your bank accounts are visible.

Wise is a registered bank, registered in Belgium so as any other bank should comply with CRS.

If you Google wise crs compliant you get:

Does Wise share tax information with anyone? We'll only share your tax information with relevant government tax authorities if we need to. This is so Wise complies with international tax standards like the Common Reporting Standard (CRS) or the Foreign Account Tax Compliance Act (FATCA).

does the Belgian tax department has access to online government account ?

 

[zzzzzz]

It depends on the jurisdiction.

USA IBKR is not CRS compliant.

That is correct. But they are FATCA compliant, and depending on your resident country and signed agreement, they can send vital information to your taxman (similar to CRS).

 

[Cloudbanck]

It depends on the jurisdiction.

USA IBKR is not CRS compliant.

I wonder what happens if you registered an account with Wise or IBKR or something while you lived in a high tax country, and then you moved to a zero tax country or third world country that isnt part of CRS, but you dont inform your bank/broker that you moved. So in theory Wise/IBKR reports to the high tax country, the high tax country responds look this guy doesn't live here. And then Wise/IBKR gets back to you saying please update your country of tax residence or possibly closes your account.
However, this does not seem to be happening, at least havent heard any Bank/EMI/Broker complaining about an incorrect tax residence/residence.

 

[zzzzzz]

I wonder what happens if you registered an account with Wise or IBKR or something while you lived in a high tax country, and then you moved to a zero tax country or third world country that isnt part of CRS, but you dont inform your bank/broker that you moved. So in theory Wise/IBKR reports to the high tax country, the high tax country responds look this guy doesn't live here. And then Wise/IBKR gets back to you saying please update your country of tax residence or possibly closes your account.
However, this does not seem to be happening, at least havent heard any Bank/EMI/Broker complaining about an incorrect tax residence/residence.

Many things can happen.
1. Your ex-taxman from high tax country, can claim you as tax resident because you still have residential ties and using benefits of that country (data via CRS reporting).
2. IBKR and Wise will see you're login from a different country, spending money and withdrawing there, sooner or later they will ask you for proof of address and re-identification. In case of IBKR you might even have to change IBKR entity.

 

[jafo]

All this is fine and dandy, except what happens if you are a tax resident in several countries? For example, you have a home in Florida, one in Monaco, and one in Switzerland. You have local banks in all of them. You open certain brokerage and bank accounts based on the most tax advantageous country. What then?

 

[zzzzzz]

All this is fine and dandy, except what happens if you are a tax resident in several countries? For example, you have a home in Florida, one in Monaco, and one in Switzerland. You have local banks in all of them. You open certain brokerage and bank accounts based on the most tax advantageous country. What then?

You have OECD model: permanent home, center of vital interest, habitual abode, nationality. This model is used in disputes when there is DTA signed.
In your case, permanent home test is equaled in all three countries. Next: center of vital interest test.

 

[karishi]

All this is fine and dandy, except what happens if you are a tax resident in several countries? For example, you have a home in Florida, one in Monaco, and one in Switzerland. You have local banks in all of them. You open certain brokerage and bank accounts based on the most tax advantageous country. What then?

If you have kids or wife, it's where they live. otherwise it's debatable