CRS and nationality. This has to change eventually

[darkred]

I know that CRS is mainly based on residency and has some indicia criteria for reporting elsewhere.

The question is if this will hold long term. From a logical standpoint, it made sense when CRS first came out. They report to the country where you live and where you supposedly pay taxes. And maybe (at the time) they just couldn't handle the amount of data they would receive if the banks report every citizen.

Do you think that eventually, they will just report to the citizenship country too? I think that this will happen in the next few years but I would like to hear your thoughts

 

[Sols]

Reporting is already done on citizenship basis, but only in cases where there is doubt or suspicion about the account holder's stated place of residence.

The right way to plan for the future, is to assume that reporting will be citizenship based by default.

FATCA is the US version of CRS, and it's citizenship based, so there is precedent already.

 

[Radko]

Don't see the point of reporting based on citizenship, that would make millions of accounts being reported every year, they can't even keep up with the CRS much less if they report you based on your citizenship, there's no point as most countries only tax you based on where you live and not based on your citizenship, it seems as a massive waste of resources to be honest

 

[darkred]

Don't see the point of reporting based on citizenship,

The point is that you can get a "fake" residency and you can get away with it for now.

they can't even keep up with the CRS much less if they report you based on your citizenship

This is my main disagreement. How do we know this? When CRS first came out it I guess it was the case. But now computers are more capable and after many years of trial and error the systems in place should be much more efficient.

 

[Radko]

The point is that you can get a "fake" residency and you can get away with it for now.



This is my main disagreement. How do we know this? When CRS first came out it I guess it was the case. But now computers are more capable and after many years of trial and error the systems in place should be much more efficient.

Apples and Oranges, I'm talking about Citizenship and you are taking about "fake" residency.
I have 4 passports, yes 4 different citizenships, I use them as I please, no one has ever asked me how many passports do I have, on the contrary I know people that have one passport and 4 different countries of residency, good luck tracking those people.

Regarding the CRS, I understand that you would think in this age of computers no one would escape in case they were reported via the CRS, but I know 2 people that were investigated by the tax authorities of their country and even while under investigation the tax authorities did not check the CRS information, most countries do not have the resources to be checking every single account that has been reported.
There are other countries where they literally do not care about the CRS even though they belong to the CRS, the reason for not caring it because the tax authorities of that country know very well that if they were to start enforcing the CRS and going after all the expats leaving there, they would lose a lot of those people and the economy of their country would suffer (I sure countries like Norway or Denmark are way more strict than let's say Thailand or Mexico, but who wants to go an live in one of those super expensive, high taxed freezing countries?)

Apples and Oranges, I'm talking about Citizenship and you are taking about "fake" residency.
I have 4 passports, yes 4 different citizenships, I use them as I please, no one has ever asked me how many passports do I have, on the contrary I know people that have one passport and 4 different countries of residency, good luck tracking those people.

Regarding the CRS, I understand that you would think in this age of computers no one would escape in case they were reported via the CRS, but I know 2 people that were investigated by the tax authorities of their country and even while under investigation the tax authorities did not check the CRS information, most countries do not have the resources to be checking every single account that has been reported.
There are other countries where they literally do not care about the CRS even though they belong to the CRS, the reason for not caring it because the tax authorities of that country know very well that if they were to start enforcing the CRS and going after all the expats leaving there, they would lose a lot of those people and the economy of their country would suffer (I sure countries like Norway or Denmark are way more strict than let's say Thailand or Mexico, but who wants to go an live in one of those super expensive, high taxed freezing countries?)

*Not leaving but living there..

 

[TheCryptoAnt]

There are other countries where they literally do not care about the CRS even though they belong to the CRS, the reason for not caring it because the tax authorities of that country know very well that if they were to start enforcing the CRS and going after all the expats leaving there, they would lose a lot of those people and the economy of their country would suffer (I sure countries like Norway or Denmark are way more strict than let's say Thailand or Mexico, but who wants to go an live in one of those super expensive, high taxed freezing countries?)

and some people in this forum will defend to death the idea that all jurisdictions enforce laws equally, regardless of context

they usually white euros thinking all places work like Germany or Sweden tho

 

[darkred]

You are approaching it the wrong way. Yeah, there are a lot of countries who do not care about CRS, that's not what I'm talking about. Of course, Mexico is not going to preassure for reporting based on citizenship lol.

I'm talking about the countries who do care and who will eventually preassure the others (like always) to enforce this.

They will eventually get tired of tracking the cheap CBIs and residency programs (Residence/Citizenship by investment - Organisation for Economic Co-operation and Development)

Also AFAIK in your passport you will always have place of birth so it doesn't matter if you have 10 passports. Of course, if you no longer live there you are fine. They are looking for their own citizens, that got a residency somewhere else but they are still living in their home country.

 

[ericd]

Also AFAIK in your passport you will always have place of birth so it doesn't matter if you have 10 passports.

2 passports,
one name, one date of birth ...
2 legal place of birth

With one of my citizenship, I could legally change my family birth name ...