CRS on an account opened and closed on the same day

[newNomad]

A rather technical query, should an account that is opened and closed at the same day, without any transactions and 0 balance be reported?

Moreover let's assume a case where there are 3 EMIs in Ireland, and a person opens an account in January with EMI-1 with French address; in June the person has moved to Spain and opens an account with EMI-2 with Spanish address; and in November the person moved to UK and opens an account with EMI-3 with an UK address.
If all EMIs would report to Irish local tax authority, they would report the same owner with 3 different tax residencies. Is the tax authority going to pass these info respectively to each reportable jurisdiction in line with each reported entry OR it will report all 3 accounts to the last stated tax residence (UK as per the file of EMI-3)?
I bet not even compliance of these EMIs know the answer ahahaha

 

[ikan]

" should an account that is opened and closed at the same day, without any transactions and 0 balance be reported?"

0 balance = report /// closed account before D date of report shouldn't be reported (but... softwares can do). To be 100% safe close the account 1 calandar year before D date of the next year (example : close in december 2021 to avoid any report from October to December 2022)

Questions :
1) are your 3 Emi known to report Crs in this forum ? If doubt subsit they may do. Most of Emi's front desk customer service don't even know about CRS !
2) are your 3 Emi asked for Tin ? and or evidence of Tax Residency ?

Basic answer to you rmain question :
Each of your Emi will report solely and individualy (if they comply) to your known and declared Tin or legal tax residency.
And tax authority recipient of the report shall not transfer to another one

Hope that helps you ?

 

[newNomad]

What is the "D date"?

1) Let's suppose all 3 EMIs need to report and that at least 2 of them have also the TIN.
2) Let's say that the onbording process with all 3 was done with appropriate doc evidence and "verified", different addresses with all 3 FIs (digital-nomad style, every couple of months you changed the address collected doc evidence and opened a new account with different EMI all regulated in the same country)

Reporting institutions always report only to the local tax authority, correct @Martin Everson ?
So in this case Irish tax authority can end up with 3 different records with 3 different residential jurisdictions associated to the same natural person; will each be routed to it's respective jurisdiction?

 

[Martin Everson]

Reporting institutions always report only to the local tax authority, correct @Martin Everson ?

Correct.

A rather technical query, should an account that is opened and closed at the same day, without any transactions and 0 balance be reported?

What does it matter as no tax is owed on zero activity accounts .

Moreover let's assume a case where there are 3 EMIs in Ireland, and a person opens an account in January with EMI-1 with French address; in June the person has moved to Spain and opens an account with EMI-2 with Spanish address; and in November the person moved to UK and opens an account with EMI-3 with an UK address.
If all EMIs would report to Irish local tax authority, they would report the same owner with 3 different tax residencies. Is the tax authority going to pass these info respectively to each reportable jurisdiction in line with each reported entry OR it will report all 3 accounts to the last stated tax residence (UK as per the file of EMI-3)?

If EMI is part of CRS then it would report to Irish tax authority. Irish tax authority would pass data on to all 3 jurisdictions. CRS reporting has built into it reporting to multiple jurisdictions as standard if required.

 

[sonato]

What does it matter as no tax is owed on zero activity accounts .

but it can bring attention to the tax office which no one of us want!

 

[Martin Everson]

but it can bring attention to the tax office which no one of us want!

What you do on IG, FB etc will bring more attention to tax office sadly then a zero balance account i.e people with no source of income flexing in Dubai...lol.

 

[newNomad]

What you do on IG, FB etc will bring more attention to tax office sadly then a zero balance account i.e people with no source of income flexing in Dubai...lol.

is this ever monitored?

 

[Martin Everson]

is this ever monitored?

Yes it is and HMRC even tell you explicitly on their communication they will look at publicly available information including social media.

12 Ways HMRC Can Tell If You Are A Tax Cheat! | Kinsella Tax

We investigate 12 ways that HMRC can use to check if you have been involved in Tax Evasion and are a tax cheat! Read & Check - Call us on 0800 471 4546!

www.kinsellatax.co.uk

---- quote start

1. Social Media​

   Arguably the greatest invention of the 21st century, social media has taken over everybody’s lives. With more than 2.3Bn people connected on Facebook, which is itself is valued at over $500Bn you can see how easy information about you can flow. Your activity could reveal you as a tax cheat! Social Media can provide HMRC with a huge amount of data. Let’s say you are regularly pleading poverty to The Revenue but start posting up photos of you on expensive holidays or driving flash cars. These activities which are out of kilter with your usual behaviour can spark interest from HMRC! This form of Open Source Research is available to anyone who has a mind to track you. HMRC is constrained by law as to how far it can go but private agencies are not.
   Our advice? Be careful what you share on Social Media – There are settings to share posts from ‘public’ to ‘close friends only’ – use them.

2. Google​

   There are a number of really useful features which Google provides that can be the downfall for the tax evader.
   Google Earth – Providing satellite images taken from space. Virtually the whole of the world is now mapped by Google. If you are pleading poverty but there is clear evidence of building work on your house then HMRC can get suspicious. If they are already looking at you then take it as a given!
   Google Maps – Similarly, Google provides arguably the best mapping systems and telematics in the world. This includes something called ‘street view’. If you are claiming one thing but the front of your house suggests another (where did that shiny new Audi R8 come from? ) then you could be letting yourself in for a surprise.
   Google My Business (GMB) – A must for any business trying to succeed locally. It requires a physical location. When that location is published Google will pull a photograph of the front of the premise from its data. Once again if that information is out of kilter with your normal activities then you could be in for a surprise visit!
   Our advice – unless you want a visit, ensure that how you are publicly viewed is consistent with your affairs. Your unusual activity could reveal you as a tax cheat!

---- quote end

 

[AMD]

A rather technical query, should an account that is opened and closed at the same day, without any transactions and 0 balance be reported?

Moreover let's assume a case where there are 3 EMIs in Ireland, and a person opens an account in January with EMI-1 with French address; in June the person has moved to Spain and opens an account with EMI-2 with Spanish address; and in November the person moved to UK and opens an account with EMI-3 with an UK address.
If all EMIs would report to Irish local tax authority, they would report the same owner with 3 different tax residencies. Is the tax authority going to pass these info respectively to each reportable jurisdiction in line with each reported entry OR it will report all 3 accounts to the last stated tax residence (UK as per the file of EMI-3)?
I bet not even compliance of these EMIs know the answer ahahaha

chances are that they report the account anyway, but I believe it will not go to the attention of any tax office.