CRS reporting and Tax Receipt

[seeker]

I have a question regarding CRS reporting. I read that CRS reports on 31st of December for non resident accounts, does that mean if I distribute most or all of money on my company's bank account, then there is nothing to report? or just report whatever balance is left in the account? (I know US is not reporting CRS)
Another question, as non resident owner of a LLC register in US and my income is 100% from outside of US, will the US bank ask me for tax receipts of my home country in the future? Do they care about if I pay tax in my home country or not?

Thanks!

 

[Radko]

I have a question regarding CRS reporting. I read that CRS reports on 31st of December for non resident accounts, does that mean if I distribute most or all of money on my company's bank account, then there is nothing to report? or just report whatever balance is left in the account? (I know US is not reporting CRS)
Another question, as non resident owner of a LLC register in US and my income is 100% from outside of US, will the US bank ask me for tax receipts of my home country in the future? Do they care about if I pay tax in my home country or not?

Thanks!

-Under CRS your account is reported regardless of the balance at the end of the year.

-The US won't ask you if you pay taxes back home, that's not their problem.

 

[seeker]

Thanks for your answers!

 

[Romanxxx]

-Under CRS your account is reported regardless of the balance at the end of the year.

How local tax authority can understand amount of fine to give? I thought there is info about transactions and amount of money through account, no?

 

[daniels27]

How local tax authority can understand amount of fine to give? I thought there is info about transactions and amount of money through account, no?

They can request further details. I once quoted the CRS sources and outlined what is reported. In any case, they do report the existence of the account and the government can request full statements from the bank once they suspect you.

 

[saturnix]

CRS reports the sum of all money added to an account, all money spent, and all interests earned.

Emptying an account before EOY makes absolutely no sense to prevent the tax authorities from knowing your balance.

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US banks are free to ask you whatever documents they want, for whatever reason. You’re not obligated to provide them, and they’re not obligated to continue doing business with you.

So far, I’ve never heard of any US bank asking for non-US tax returns (or any tax return at all). For alien non resident sole owner LLCs, US banks seem mostly interested in your effective presence and/or economic substance on US soil. Invoices from US customers/suppliers, US proof of address (offices rents, utility bills, physical bank accounts): these are currently being asked a lot.

 

[Dh8]

CRS reports the sum of all money added to an account, all money spent, and all interests earned.

Emptying an account before EOY makes absolutely no sense to prevent the tax authorities from knowing your balance.

—

US banks are free to ask you whatever documents they want, for whatever reason. You’re not obligated to provide them, and they’re not obligated to continue doing business with you.

So far, I’ve never heard of any US bank asking for non-US tax returns (or any tax return at all). For alien non resident sole owner LLCs, US banks seem mostly interested in your effective presence and/or economic substance on US soil. Invoices from US customers/suppliers, US proof of address (offices rents, utility bills, physical bank accounts): these are currently being asked a lot.

CRS doesn't automatically report the sum of money added to an account nor the money spent. It just reports interest earned and the balance of the account at year-end, along with account information details like name, address etc.

But yes, if tax authorities in your resident country want to act on that information and pry further, they can easily contact either you or the bank for bank statements which would then show all deposits and withdrawals.