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donald bathe

donald bathe

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Jun 19, 2016
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#1
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only for legal residents of the following countries, canada, australia, and new zealand, do they in 2018 or after have to declare offshore bank accounts or whats the deal with this? can someone please tell me, what their laws have to say about it? rsvp. thank you.
 
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#2
https://www.oecd.org/tax/transparency/AEOI-commitments.pdf

JURISDICTIONS UNDERTAKING FIRST EXCHANGES BY 2018 (51)
Australia, Canada, New Zealand.

Guess they would receive information on their taxpayees by then too.


**
Last week I received my very fist letter of a bank abroad that informed me they have sent information about me to their national tax authorities. It also detailed which information was sent. Really nice of them to do so.

Also this week I had a converstation with a tax lawyer, about UBO exposure and how to 'mitigate this'. Basically when you open a bank account at a reporting institution you are F*cked. Also when using auric's 'the darks' there will be discrepencies between a reported individual and a the tax records, possibly triggering an investigation and losing your funds.

So it will be very interesting to see which countries will investigate and are of no use with the darks in the coming years, and which countries are taxwise so lax they could not be bothered.
 
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#3
Milky Moon said:
https://www.oecd.org/tax/transparency/AEOI-commitments.pdf

JURISDICTIONS UNDERTAKING FIRST EXCHANGES BY 2018 (51)
Australia, Canada, New Zealand.

Guess they would receive information on their taxpayees by then too.


**
Last week I received my very fist letter of a bank abroad that informed me they have sent information about me to their national tax authorities. It also detailed which information was sent. Really nice of them to do so.

Also this week I had a converstation with a tax lawyer, about UBO exposure and how to 'mitigate this'. Basically when you open a bank account at a reporting institution you are F*cked. Also when using auric's 'the darks' there will be discrepencies between a reported individual and a the tax records, possibly triggering an investigation and losing your funds.

So it will be very interesting to see which countries will investigate and are of no use with the darks in the coming years, and which countries are taxwise so lax they could not be bothered.
Click to expand...
Is it a requirement or standard for banks to inform us when they send information? Or do you just have a polite bank?
 
#5
can i ask you something regarding an article i found regarding offshore banks? rsvp.


Milky Moon said:
https://www.oecd.org/tax/transparency/AEOI-commitments.pdf

JURISDICTIONS UNDERTAKING FIRST EXCHANGES BY 2018 (51)
Australia, Canada, New Zealand.

Guess they would receive information on their taxpayees by then too.


**
Last week I received my very fist letter of a bank abroad that informed me they have sent information about me to their national tax authorities. It also detailed which information was sent. Really nice of them to do so.

Also this week I had a converstation with a tax lawyer, about UBO exposure and how to 'mitigate this'. Basically when you open a bank account at a reporting institution you are F*cked. Also when using auric's 'the darks' there will be discrepencies between a reported individual and a the tax records, possibly triggering an investigation and losing your funds.

So it will be very interesting to see which countries will investigate and are of no use with the darks in the coming years, and which countries are taxwise so lax they could not be bothered.
Click to expand...
 
#8
donald bathe said:
only for legal residents of the following countries, canada, australia, and new zealand, do they in 2018 or after have to declare offshore bank accounts or whats the deal with this? can someone please tell me, what their laws have to say about it? rsvp. thank you.
Click to expand...

At this stage in New Zealand, we do not have to declare overseas bank accounts and there is no reporting mechanism for it. However, we do have to file a declaration regarding a (CFC) Controlled Foreign Company. Basically, Kiwi's are obligated to report and treat the income from the CFC as if it was their own etc. So you have to be careful around doing the setup to avoid this status.

So it wouldnt surprise me if they move towards offshore bank reporting as well down the track...but at this stage...no we dont have it.
 
#9
jryan54 said:
At this stage in New Zealand, we do not have to declare overseas bank accounts and there is no reporting mechanism for it. However, we do have to file a declaration regarding a (CFC) Controlled Foreign Company. Basically, Kiwi's are obligated to report and treat the income from the CFC as if it was their own etc. So you have to be careful around doing the setup to avoid this status.

So it wouldnt surprise me if they move towards offshore bank reporting as well down the track...but at this stage...no we dont have it.
Click to expand...
You don't have to report overseas bank accounts or assets, but you do have to report worldwide income. If you transfer money that has already been taxed out of NZ, you don't need to tell NZ where it is. If that money now earns interest, then you do have to report it.

The AEOI will tell NZ that you have money offshore but this is not illegal. If you are simply storing cash offshore the worst you would get from the AEOI is a query or audit and NZ would be satisfied when you show that you have not earned any undeclared income.
 
#10
mnschwarz said:
You don't have to report overseas bank accounts or assets, but you do have to report worldwide income. If you transfer money that has already been taxed out of NZ, you don't need to tell NZ where it is. If that money now earns interest, then you do have to report it.

The AEOI will tell NZ that you have money offshore but this is not illegal. If you are simply storing cash offshore the worst you would get from the AEOI is a query or audit and NZ would be satisfied when you show that you have not earned any undeclared income.
Click to expand...
Yeah very true...BUT...for people looking to use a simple IBC structure to simply not pay tax have largely come to an end here. The reason is that the IRD is getting much smarter at picking up and processing the information. There are PLENTY of legitimate reasons to have assets offshore and offshore corporate structure....but if completely evading tax is becoming significantly harder here now.

Anyway, that's my view...i'm not a professional in this field but, as an economist, i have done some consulting for the IRD in the past to develop models to identify high risk taxpayers in certain data sets.

cheers mate :)
 
#11
Also to clarify the dates that each jurisdiction will start reporting. 2018 does not mean you have until the end of the year to find a solution. 2018 is when they begin reporting based on 2017's accounts. If you have an account in any of these AEOI jurisdictions, you will already be getting reported either this year or next.
 
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#12
then why do i get the feeling that people who live in third world countries where presumably tax laws are much more lax than in rich developed first world nations, really dont have to worry as much about having a secret offshore bank account? why is that then? rsvp.


+
mnschwarz said:
You don't have to report overseas bank accounts or assets, but you do have to report worldwide income. If you transfer money that has already been taxed out of NZ, you don't need to tell NZ where it is. If that money now earns interest, then you do have to report it.

The AEOI will tell NZ that you have money offshore but this is not illegal. If you are simply storing cash offshore the worst you would get from the AEOI is a query or audit and NZ would be satisfied when you show that you have not earned any undeclared income.
Click to expand...
 
#13
donald bathe said:
then why do i get the feeling that people who live in third world countries where presumably tax laws are much more lax than in rich developed first world nations, really dont have to worry as much about having a secret offshore bank account? why is that then? rsvp.


+
Click to expand...
Well if you live in a country with relaxed tax laws, you probably don't need to hide anything. Plus a rich developed country has more available resources and incentive to track down those avoiding tax.
 
#14
Milky Moon said:
I do not know. But sofar it has been the only bank.
Click to expand...

And one other large bank informed me about their CSR reporting:

CRS - Ihre meldepflichtigen Daten für 2016

Sehr geehrter Frau xxxxxxx

der Common Reporting Standard (CRS) ist ein länderübergreifender Austausch vonSteuerinformationen.Wir sind aufgrund des Gesetzes zum automatischen Austausch von Informationen überFinanzkonten in Steuersachen (FKAustG) verpflichtet, folgende Daten der oben genanntenKundennummer an das Bundeszentralamt für Steuern (BZSt) zu melden. Das BZSt wird diese Datenan die Steuerbehörde des jeweiligen Landes weiterleiten.

*name*
*address*
*date of birth*

reported:
*country of residence* (some where in Europe)
*account dates* (1.1.2016-31.12.2016)(if you opened the acount during the year the start date will change)
*TIN* (tax ID)

Produktbezeichnung (basically accountnummer)
Datum (31.12.2016)
Saldo (account balance on 31.12.2016)
Summe Bruttoerträge (profit/interest+dividends I guess)
Summe Bruttoerlöse (loss)

*******************************************

This basically means that if you fund the account in January and buy bitcoins at the end of december and convert them back again to euro's in January, than as long as you have a non interest baring account the bank will report zero account balance on the 31st of december and zero profits as there has been no intrest payed.

Or find a non-reporting EMI that accepts a large(er) amount of money and move the money there during the change of year.
 
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#15
Thanks for letting us know about all of this, it seems it takes some time before the banks are able to start following the CRS standards.
 
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