Avoid CRS REPORTING with N26

[kkein]

This is BULLSHIT.

Every financial institution and bank is committed to CRS! With German customers they do not ask for TIN, because the customer is taxable in Germany anyway and the tax office has access to the bank data.

For foreign customers, everyone can check here whether the TIN is correct or not: TIN on-the-Web - European Commission

The times of playing hide and seek with anonymous accounts and money laundering are over!

your reply is replying to non existent questions.
The questions were quite clear, i believe:
- What happens if one registers a N26 account in country X and then immediately changes tax residency and TIN to a maltese one, country where N26 is not operating?
- Would this work beyond 18 months? (source: Availability across Countries - N26 Support Center)
- Will N26 report to maltese Tax authorities in the case above?

 

[JustAnotherNomad]

I guess they may close the account or they may leave it open, no idea.

As for the reporting, my understanding is that the bank always only reports to the country where it is licensed. If N26 is a German bank, it will report to Germany the information that you are tax resident in Malta and whatever other information they have about you, like your Spanish phone number. It is not the bank, but the German tax office, which will then relay this information to the Maltese authorities, and possibly the Spanish ones, too. So yes, there will always be reporting if the bank is in a CRS country.
Somebody please correct me if I’m wrong.

 

[CounselRep]

On the CRS reporting process, see this quote from the CRS Implementation Handbook (Pages 7-8) [emphasis added]:

"The automatic information exchange framework
4. Figure 1 depicts the automatic exchange framework for reciprocal information exchange under the Standard. In broad terms, financial institutions report information to the tax administration in the jurisdiction in which they are located. The information consists of details of financial assets they hold on behalf of non-resident taxpayers and the income derived therefrom. The tax administrations then exchange that information with the jurisdiction(s) of residence of the taxpayer."

On whether Germany reports to Malta under CRS:

On whether N26/Germany will report to Malta after the tax residency is changed to Malta from country X, that will depend on different things, e.g. whether the account is a reportable account, whether the controlling person is a reportable person, etc., but also whether N26 is told of the change by the account holder, OR if N26 detects evidence of that change in some other way. The CRS Implementation Handbook says (Pages 76-78) [emphasis added]:

"165. If the Financial Institution knows or has reason to know that the Documentary Evidence is unreliable, including as a result of a change in circumstances, then that Documentary Evidence cannot be relied upon. Therefore, either the residence address test cannot be used in the first place or, if it is as a result of a change in circumstances, the Financial Institution has until the later of the last day of the reporting period or 90 days to obtain a self-certification and new Documentary Evidence. If this is not obtained then the electronic indicia search must be completed (see below).
...
167. Where the conditions are not met for the residence address test, or where the jurisdiction does not allow for its use, then the electronic search must be carried out. Under the electronic record search, the Reporting Financial Institution must review its electronically searchable data for any of the following indicia (these are a series of factors that indicate where an Account Holder is resident):
1. identification of the Account Holder as a resident of a Reportable Jurisdiction(s);

1. current mailing or residence address in a Reportable Jurisdiction(s);
2. one or more current or most recent telephone numbers in a Reportable Jurisdiction(s) and no telephone number in the jurisdiction of the Reporting Financial Institution;
3. current standing instructions (other than with respect to a Depository Account) to repeatedly transfer funds to an account maintained in a Reportable Jurisdiction(s);
4. currently effective power of attorney or signatory authority granted to a person with an address in a Reportable Jurisdiction(s); or
5. a current “hold mail” instruction or “in-care-of” address in a Reportable Jurisdiction(s) if the Reporting Financial Institution does not have any other address on file for the Account Holder.

168. If any of the indicia listed are discovered in the electronic search, or if there is a change in circumstances that results in one or more indicia being associated with the account, then, the Reporting Financial Institution must treat the Account Holder as a resident for tax purposes of each Reportable Jurisdiction for which an indicium is identified, unless it elects to apply the curing procedure and one of the exceptions subsequently applies (see below)."

 

[tacokai]

very useful the last post in this thread, really great it outlines the issue perfectly to the best of an explanation on how CRS works.

 

[kkein]

Thank you indeed! i wonder if you could also write a couple of lines of clarification for what is a reportable account and what is a reportable person?

 

[kkein]

Thank you indeed! i wonder if you could also write a couple of lines of clarification for what is a reportable account and what is a reportable person?

I suppose i can answer myself: it seems that reportable person is a person living in a reportable jurisdiction, and reportable account is an account belonging to such person. So basically we can assume we are reportable unless living somewhere in africa.

 

[Btraveler]

About all of these. I think that to not be reported, you've to own a Payeer, Advcash, Perfect Money or Binance account.

If I'm not wrong, that 4 platforms doesn't report under CRS and won't be doing in the nexts few years. I hope someone corrects me if I'm wrong on that.

And, about, that, anyone has tested the Binance debit card? It's working well? And, most important...Are you being reported to your home country with Binance or with Binance card (which I imagine is under Visa or Mastercard standards)?

N26, Bunq, etc...Report you to your home country.

Revolut, Transferwise and similar (Emi's) will report everyone in the next 2-3 years, be sure of that

 

[Konstanz]

Guys, CRS avoidance will end you with high fines and/or criminal investigations or jail time for tax avoidance and money laundering.
All these wallets and fintech banks will report CRS it's just a question of time.
Also if they find something suspiscious about account they can always report to your passport country just in case..
I would advise to change residence or form some proper structure with substance instead of avoidance CRS

 

[kkein]

About all of these. I think that to not be reported, you've to own a Payeer, Advcash, Perfect Money or Binance account.

If I'm not wrong, that 4 platforms doesn't report under CRS and won't be doing in the nexts few years. I hope someone corrects me if I'm wrong on that.

And, about, that, anyone has tested the Binance debit card? It's working well? And, most important...Are you being reported to your home country with Binance or with Binance card (which I imagine is under Visa or Mastercard standards)?

N26, Bunq, etc...Report you to your home country.

Revolut, Transferwise and similar (Emi's) will report everyone in the next 2-3 years, be sure of that

Good to know that revolut isn't reporting as of now. Some say it does some say it doesn't.We know they might eventually report also back-dated transactions and info, but in some cases it might also matter what is happening now.

 

[Benzouser]

Good to know that revolut isn't reporting as of now. Some say it does some say it doesn't.We know they might eventually report also back-dated transactions and info, but in some cases it might also matter what is happening now.

Revolut has bank license in EU so ofcourse they report with AEOI.

 

[tacokai]

Revolut has bank license in EU so ofcourse they report with AEOI.

Agree - you respond to an old thread! Anyway, let's pin point it and say Revolut as well as N26 will report your account(s).

 

[Btraveler]

Revolut has bank license in EU so ofcourse they report with AEOI.

Mate, this was an old post. Revolut has now a Bank license, so they'll report you.

You can still make little tricks with Transferwise, but they will report soon

 

[Benzouser]

Mate, this was an old post. Revolut has now a Bank license, so they'll report you.

You can still make little tricks with Transferwise, but they will report soon

Wise and Monese is UK reg EMI and should not report with CRS , we can just hope and pray for now.. That will for sure change in a near future.

 

[rolex]

Is there still any banks that don't follow the CRS?

 

[Sols]

Yes, but generally not in places where you'd want to bank as a non-resident foreigner.

 

[marioIT]

N26 is under fire, money laundering risks

MILAN (Reuters) - The Bank of Italy said on Tuesday it had banned the local unit of online German bank N26 from taking on new customers after checks late last year flagged money laundering risks.
Italy's central bank said N26 was also prohibited from offering new products and services, such as cryptoassets, to existing clients.

"The Bank of Italy adopted such measures following inspections, conducted between Oct. 25 and Dec. 17 2021, which highlighted significant shortcomings in complying with anti-money laundering regulation," it said.

"N26 took measures to remedy such shortcoming," the central bank added in a note. "The Bank of Italy reserves the right to assess the anomalies have been fully overcome, before considering revising the current decision."

(Reporting by Valentina Za; Editing by Chris Reese and Jonathan Oatis)

 

[kkein]

N26 is under fire, money laundering risks

Smells to me like someone wants to take them down. New banks like N26 must be a real pain for old style banks that are now even trying to reinstate monthly fees.

 

[James Spader]

Won't last long before they have to restart their reporting efforts.

 

[lory]

So far USA companies won't report yet, they are still a safe haven. But how long would you think it will stay like that, 1 year, 2 years?

 

[lostguy]

Smells to me like someone wants to take them down. New banks like N26 must be a real pain for old style banks that are now even trying to reinstate monthly fees.

none the less they work well, the new new banks like N26!