CRS report yearly income?

[Masterhack]

Hi i have question CRS report only Year-end account balance or with total yearly income and outcome to bank account?

 

[kkein]

Hi i have question CRS report only Year-end account balance or with total yearly income and outcome to bank account?

the second.search, question been answered

 

[Masterhack]

If u think this topic Avoid CRS REPORTING with N26 in this topic is only rumors and nothing about yearly income.

 

[kkein]

plenty of CRS topics, mate. Half of the forum is about that

 

[Masterhack]

Can u please give me true answer if send yearly income? I read about send of end of year balance but nothing about my question.

 

[CounselRep]

What financial information is reported under CRS seems to depend on things like:

- the type of account
- who holds the account
- whether there is a controlling person involved
- whether the account or any of the controlling person are Reportable Persons, and
- how many addresses the bank has on its system for the account holder and controlling persons.

So you need to pick which one applies to you (nothing is straight forward with CRS - everything depends on nuanced detail).

I don't know how it works in practice, but if you read the CRS commentary (pages 98-99), it says [emphasis added]:

"the entire balance or value of the account, as well as the entire amount paid or credited to the account must be reported" in the following cases:

- a jointly held account (the balance/value and entire amount paid is attributed to each holder)

- an account held by a Passive NFE with more than one Controlling Person that is a Reportable Person (the entire balance/value and entire amount paid/credited is attributed to each Controlling Person)

- an account held by an Account Holder that is a Reportable Person and is identified as having more than one jurisdiction of residence (the entire balance/value and entire amount paid/credited is reported to each jurisdiction)

- an account held by a Passive NFE with a Controlling Person that is a Reportable Person and is identified as having more than one jurisdiction of residence (the entire balance/value and entire amount paid/credited is reported to each jurisdiction of the Controlling Person)

- an account held by a Passive NFE that is a Reportable Person with a Controlling Person that is a Reportable Person (the balance/value and entire amount paid is reported for both the Passive NFE and the Controlling Person)

And that doesn't even get into accounts that were closed during the reporting period, accounts with a negative or zero balance, Cash Value Insurance or Annuity accounts, banks that report averaged balances, or if there is an Equity or Debt Interest involved....

So good luck working all that out and which one applies to your account, but it seems that end of year balance and income into the account can be reported if the account falls into the one of the above categories.

Outgoings from the account aren't mentioned here though and why would they be - probably not as relevant as income for tax purposes?

 

[CounselRep]

I've had a bit of a closer look at this, and wanted to add the following which might help you, although the answer for you will still depend on the type of account you have.

But basically, if all you have is a Depository Account, then what gets reported is two things:

- the account balance or value at the end of the reporting period; and
- the total gross amount of interest paid or credited to the account during the reporting period

But you should check that what you have is a Depository Account, and is not something else like a Custodial Account, or something else, because then other things could get reported like total gross amount paid or credited to the account over the year.

See below for more detail:

(1) For all accounts, the account balance or value gets reported.

(This is as of the end of the relevant calendar year or other appropriate reporting period or, if the account was closed during such year or period, the closure of the account.)

(2) In addition to that, for all accounts that are not Depository Accounts or Custodial Accounts, the bank should report the "total gross amount paid or credited to the Account Holder with respect to the account"

(This is for amounts paid during the calendar year or other appropriate reporting period with respect to which the Reporting Financial Institution is the obligor or debtor, including the aggregate amount of any redemption payments made to the Account Holder during the calendar year or other appropriate reporting period.)

What ever that means.

(3) If all you have is a Depository Account, then what gets reported is what is in (1) above plus "the total gross amount of interest paid or credited to the account during the calendar year or other appropriate reporting period".

(4) If you have a Custodial Account, then what gets reported is what is in (1) above plus

"(a) the total gross amount of interest, the total gross amount of dividends, and the total gross amount of other income generated with respect to the assets held in the account, in each case paid or credited to the account (or with respect to the account) during the calendar year or other appropriate reporting period; and

(b) the total gross proceeds from the sale or redemption of Financial Assets paid or credited to the account during the calendar year or other appropriate reporting period with respect to which the Reporting Financial Institution acted as a custodian, broker, nominee, or otherwise as an agent for the Account Holder."

All this is found in the model CRS, Section I (A) 4-7.

In terms of how the bank reports it for different versions of these 3 types of accounts (joint accounts, Passive NFE accounts etc) see the post above.