Aeoi, tiea, crs

[santosg]

How exactly does the automatic exchange of information, tax information exchange agreements, and common reporting standard detect tax evasion if not by cross referencing information? How can these three protocols detect even the most fancy tax evasion techniques used by clever people around? Can someone explain to me this in plain and simple english?

 

[jafo]

Very bold of you to assume tax authorities care about evidence. If they knock on your door, you MUST retain an accountant and a lawyer at the very least. This will cost you thousands of € and it's NOT reimbursable...even if the tax authorities are proven to be wrong.

 

[santosg]

Very bold of you to assume tax authorities care about evidence. If they knock on your door, you MUST retain an accountant and a lawyer at the very least. This will cost you thousands of € and it's NOT reimbursable...even if the tax authorities are proven to be wrong.

You still havent told me anything....

 

[jafo]

You still havent told me anything....

Yes

 

[Semso]

Those protocols (CRS) for example dont detect but just report. Thats why when you create a bank account you will need to give your tax id or country of residency.
The info gets reported to the countries central tax register and they pass it to the tax office overseeing you. Its up to them to decide whatever to do with the info they got.

 

[santosg]

Yes

Those protocols (CRS) for example dont detect but just report. Thats why when you create a bank account you will need to give your tax id or country of residency.
The info gets reported to the countries central tax register and they pass it to the tax office overseeing you. Its up to them to decide whatever to do with the info they got.

But what if someone lives in the u.s. but keeps a home in costa rica and uses a costa rican address to open offshore bank accounts and fatca never finds out about this assuming they got a debit card they wanted to use in the u.s.???

 

[jafo]

But what if someone lives in the u.s. but keeps a home in costa rica and uses a costa rican address to open offshore bank accounts and fatca never finds out about this assuming they got a debit card they wanted to use in the u.s.???

If you had an answer for this, why ask?

Assuming you were NOT born in the US *and* you have e.g. a logmein type system in Costa Rica, a Costa Rican mobile phone to receive calls and make calls, and never use any of your debit cards/credit cards in the US, you would be safe. You can't use your CR mobile phone to access apps unless you had a static IP from CR.

Plenty of very intelligent US residents do this, but your OPSEC has to be airtight!

 

[cuno]

If you can duplicate your identity just to be in Costa Rica you are home free.. This would require intelligence as @jafo already said. You will have to think about the smallest detail and prepare it before you do anything, also before you apply for any account.

If you can do that, you may be 90% safe that no FATCA will hit you!

 

[EliasIT]

It's a strange mission you are on OP - it's not that easy as you believe, thats why you may get all the replies you get!