Can tax authorities request statements from offshore bankaccounts?

[Robles]

Question is simple. Are European tax authorities able to contact Caribean offshore banks to request statements? For example they found out you had a Ltd in 2014 and with which bank you banked at the time. Before the automatic exchange. Can they still retrieve this information? Or do they need to rely on your bookkeeping and archive of statements you kept.

 

[Mr Magoo]

depends on what jurisdiction you are tax resident. It can differ a lot e.g. between countries in Europe

 

[Robles]

Resident in South America. Formerly in Europe. Do these banks have no secrecy and how long do they keep files after closing an account?

 

[Mr Magoo]

OK, in what country in Europe were you resident? In what jurisdiction did you have a Ltd?

 

[Tax Cow]

Ask the reverse, can Belize tax authorities get their resident's bank statements from a private French bank on-demand?

Sure, it is possible in some cases, but not without filing forms and paying substantial administrative fees; to the state for mandating assistance from the bank, and then to the bank, assuming the state does not tell them to bug off.

 

[Martin Everson]

Are European tax authorities able to contact Caribean offshore banks to request statements? For example they found out you had a Ltd in 2014 and with which bank you banked at the time.

Yes of course they can and it happens often enough. Where no double tax agreement (DTA) exists they can go through the court system even for closed companies and accounts. Whether they would be successful or not is another matter. You are dependent then on Caribbean island resisting the court request.

 

[Robles]

OK, in what country in Europe were you resident? In what jurisdiction did you have a Ltd?

Resident in Germany. Ltd in Seychelles, bank in Mauritius. This was all closed 4 years ago.

 

[Suzy Emerald]

I wonder how the Finanzamt found out about your IBC. You mention a bank in the Caribean and later you mention the bank is in Mauritius (?).

 

[Mr Magoo]

As far as I know, and correct me if I am wrong, in Seychelles, BZ etc you have to go though court to get the UBO behind an IBC. But once they have the UBO etc, how do they know what bank the IBC is banking with? Not sure how difficult it is to get the data from the bank, also through court? A lot of effort it seems to me unless the Finanzamt in this case knows it is about substantial amounts.

 

[Robles]

I wonder how the Finanzamt found out about your IBC. You mention a bank in the Caribean and later you mention the bank is in Mauritius (?).

I am 99% sure the company who arranged this for me leaked all info. There is no other possibility. Probably forced to do this I assume but sucks.

 

[Martin Everson]

I am 99% sure the company who arranged this for me leaked all info. There is no other possibility. Probably forced to do this I assume but sucks.

That's possible. Agents leak data to prevent themselves from facing criminal prosecution when approached by a government agency. Also plenty of data was leaked as part of "Paradise Papers" leak which leaked a bunch of data on Caribbean offshore companies plus Seychelles . If your name is on a company leaked then your 100% screwed.

If it makes you feel any better my name appears in the Paradise Papers for a very old company and I did nothing wrong .

https://offshoreleaks.icij.org/
https://www.icij.org/investigations/paradise-papers/

 

[Robles]

I did nothing wrong. But lost the bookkeeping on the old company. Just curious what they can find themselves if I refuse to cooperate.

 

[Martin Everson]

I am 99% sure the company who arranged this for me leaked all info. There is no other possibility. Probably forced to do this I assume but sucks.

How do you know it was not the bank actually? . Taxman is not going to reveal everything they have on you.

Just curious what they can find themselves if I refuse to cooperate.

Do you think that's a good idea?

That's a big gamble unless you know what information they have on you. You need a lawyer or it may not end well.

 

[Mr Magoo]

I wonder how the Finanzamt found out with what agency you did set up the company. I assume based on what you write you did set up the company and bank account with the same agency.

 

[Martin Everson]

I wonder how the Finanzamt found out with what agency you did set up the company.

Probably the same way they did below. Offshore CSP business is not easy these days and nice brown envelope can go a long way I suppose.

https://www.reuters.com/article/ger...-bank-client-data-paper-idUSL6N0U509P20141221

 

[Robles]

I wonder how the Finanzamt found out with what agency you did set up the company. I assume based on what you write you did set up the company and bank account with the same agency.

Mind at that time there was not something like Panama papers and it was set up for liability reasons. Not evading. All was closed years ago. I lost administration which is stupid and now it seems after all these years they want to find my hidden treasure which isn’t there. That’s why I want to know if they are able to get balance info from old offshore accounts. There was money in the accounts from investors but can’t show a proper bookkeeping. I know I’m screwed. Just trying to figure out some damage control. I do have a laywer contacted in the meantime. Was hoping to find more info here from people who had a similar situation.

 

[Mr Magoo]

I would first try to reconstruct what happened by contacting the agency and your bank and simply ask them

 

[Robles]

I would first try to reconstruct what happened by contacting the agency and your bank and simply ask them

That is already worked on. No response for a week already. But never mind. Laywer appointment tomorrow.

 

[Martin Everson]

Laywer appointment tomorrow.

That's the way to go. Assume the worst but hope for the best is my moto . Being caught and assisting tax man will result in fine. However being caught and being none cooperative will result in jail for avoided tax amounts over 100k Euro in Germany. Your lawyer will explain it all to you.

P.S The taxman can get everything like I explained already.