Our valued sponsor

CRS Reporting, confused if I am reportable via my bank and broker.

U

UAETrader454

New member
Apr 14, 2021
22
8
3
36
Dubai
#1
Register now
You must login or register to view hidden content on this page.
I am a UK citizen but I now have left the UK and I have UAE residency, I have opened my UAE bank account with residency visa (I have an investor visa) , Emirates ID and UAE phone number, I did not give any info about the UK on the application and on the CRS report section on my online banking, i selected "No" when it asked If i am a tax resident of any other country, does this mean my bank will not do a CRS report on me to the UK?

I also use Interactive brokers, I did use the UK subsidiary but I have now switched to a UAE account which comes under the USA LLC I think.
The Interactive brokers website states " For accounts held by Interactive Brokers LLC, there is no reporting since the United Sates has not signed the CRS" (Common Reporting Standard (CRS) | IB Knowledge Base), Will they still report me to the UK as I swapped from a UK to LLC account thus meaning they know my UK tax number and UK tax info, my tax residence states UAE on my account but it also has my UK national insurance number listed too.

Can anyone more in the know shed some light on this please?
Thank you
 
#2
UAETrader454 said:
I am a UK citizen but I now have left the UK and I have UAE residency, I have opened my UAE bank account with residency visa (I have an investor visa) , Emirates ID and UAE phone number, I did not give any info about the UK on the application and on the CRS report section on my online banking, i selected "No" when it asked If i am a tax resident of any other country, does this mean my bank will not do a CRS report on me to the UK?
Click to expand...
It's unlikely they would report to the UK in this case but they still might if they know you are a UK citizen or transact a lot with the UK (especially to/from your own accounts there).
 
  • Like
Reactions: Gediminas
#3
Sols said:
It's unlikely they would report to the UK in this case but they still might if they know you are a UK citizen or transact a lot with the UK (especially to/from your own accounts there).
Click to expand...
I will only deposit/ withdraw via my UAE accounts, do you think asking them if they report would be deemed too suspicious?
 
#4
UAETrader454 said:
I will only deposit/ withdraw via my UAE accounts, do you think asking them if they report would be deemed too suspicious?
Click to expand...
Would you think asking the police if you just speeded (when even you didn't) is suspicious/unusual? ;) Yes, it's suspicious. Asking those kinds of questions can (but doesn't always) get your account flagged as suspicious.

If you do ask, the person at the bank is unlikely to understand the question or be able to give you a definite answer. The reporting to authorities isn't done by front-line support. You'd need relationships with more senior personnel at the bank to have a shot at getting close to certainty.

If your structure is sound, there should be no reporting and even if there is, the HMRC wouldn't care as long as you stay outside the UK and sever ties properly.
 
  • Like
Reactions: seabreeze, deepsudeep and JackAlabama
#5
Sols said:
Would you think asking the police if you just speeded (when even you didn't) is suspicious/unusual? ;) Yes, it's suspicious. Asking those kinds of questions can (but doesn't always) get your account flagged as suspicious.

If you do ask, the person at the bank is unlikely to understand the question or be able to give you a definite answer. The reporting to authorities isn't done by front-line support. You'd need relationships with more senior personnel at the bank to have a shot at getting close to certainty.

If your structure is sound, there should be no reporting and even if there is, the HMRC wouldn't care as long as you stay outside the UK and sever ties properly.
Click to expand...
Thank you , Im trying to figure out if my structure is sound, I don't like fact my broker has my UK tax info when it is not needed by them, id much prefer them not to have it so they cant report.
 
#6
UAETrader454 said:
Thank you , Im trying to figure out if my structure is sound, I don't like fact my broker has my UK tax info when it is not needed by them, id much prefer them not to have it so they cant report.
Click to expand...
It may be unavoidable
 
#7
Correct me if I'm wrong but they don't actually need your tax id, if they want they can report on Name + birth date. That's a pretty unique combination to identify anyone unless you have an extremely common name
 
#8
rodrigo07 said:
Correct me if I'm wrong but they don't actually need your tax id, if they want they can report on Name + birth date. That's a pretty unique combination to identify anyone unless you have an extremely common name
Click to expand...
I was reported via FATCA (USA sent data about dividends and interest for my personal brokerage account to my taxman in EU) without tax id, back in 2014/2015 when automatic exchange started. CRS works pretty much the same.
 
#9
UAETrader454 said:
I am a UK citizen but I now have left the UK and I have UAE residency, I have opened my UAE bank account with residency visa (I have an investor visa) , Emirates ID and UAE phone number, I did not give any info about the UK on the application and on the CRS report section on my online banking, i selected "No" when it asked If i am a tax resident of any other country, does this mean my bank will not do a CRS report on me to the UK?

I also use Interactive brokers, I did use the UK subsidiary but I have now switched to a UAE account which comes under the USA LLC I think.
The Interactive brokers website states " For accounts held by Interactive Brokers LLC, there is no reporting since the United Sates has not signed the CRS" (Common Reporting Standard (CRS) | IB Knowledge Base), Will they still report me to the UK as I swapped from a UK to LLC account thus meaning they know my UK tax number and UK tax info, my tax residence states UAE on my account but it also has my UK national insurance number listed too.

Can anyone more in the know shed some light on this please?
Thank you
Click to expand...
I am not sure how does it work in the UK, but in my country you need to go to tax authority with the certificate of tax residency from the country where you became tax resident and remove yourself as a resident, you even get a certificate of deletion.
 
#12
zzzzzz said:
I was reported via FATCA (USA sent data about dividends and interest for my personal brokerage account to my taxman in EU) without tax id, back in 2014/2015 when automatic exchange started. CRS works pretty much the same.
Click to expand...
Were you a resident of another country at the time?
Im thinking the USA would send the info to the UAE as that is where i am a tax resident, Im wondering if they would also send them to my country of citizenship which is the UK.

How did you find out that they sent the report to your tax man?
 
#14
UAETrader454 said:
Were you a resident of another country at the time?
Im thinking the USA would send the info to the UAE as that is where i am a tax resident, Im wondering if they would also send them to my country of citizenship which is the UK.

How did you find out that they sent the report to your tax man?
Click to expand...
I'm citizen and resident of EU country, my brokerage is based in USA. Taxman sent me a letter in 2016...."FATCA exchange of information....you had dividends and interest income in USA in 2014 and 2015....you didn't report it.....etc."

I had to file taxes, pay taxes and pay fine with interest. Fortunately it was a small amount (few hundred USD). FATCA goes both ways: my taxman sends to IRS information about income earned by USA citizens, and IRS sends to my taxman data on income earned by residents of my country.
 
#16
zzzzzz said:
I'm citizen and resident of EU country, my brokerage is based in USA. Taxman sent me a letter in 2016...."FATCA exchange of information....you had dividends and interest income in USA in 2014 and 2015....you didn't report it.....etc."

I had to file taxes, pay taxes and pay fine with interest. Fortunately it was a small amount (few hundred USD). FATCA goes both ways: my taxman sends to IRS information about income earned by USA citizens, and IRS sends to my taxman data on income earned by residents of my country.
Click to expand...
Interesting, I thought the USA charges a Tax on dividends from US stocks and they have a double taxation agreement with most EU countries, so should you not have been exempt?

Its good to hear nothing too serious happened due to it.
 
#17
UAETrader454 said:
Interesting, I thought the USA charges a Tax on dividends from US stocks and they have a double taxation agreement with most EU countries, so should you not have been exempt?

Its good to hear nothing too serious happened due to it.
Click to expand...
Double tax agreement usually says you have to pay the difference on what you already paid abroad. In USA you paid 15% dividend tax, but if dividend tax rate in your country of residence is 28%, you only pay the difference (13%).
 
#18
UAETrader454 said:
Were you a resident of another country at the time?
Im thinking the USA would send the info to the UAE as that is where i am a tax resident, Im wondering if they would also send them to my country of citizenship which is the UK.

How did you find out that they sent the report to your tax man?
Click to expand...
yes they can, it's called indicia reporting
 
#19
zzzzzz said:
I was reported via FATCA (USA sent data about dividends and interest for my personal brokerage account to my taxman in EU) without tax id, back in 2014/2015 when automatic exchange started. CRS works pretty much the same.
Click to expand...
That's interesting. I thought the reporting back from the USA to other countries was part of the deal, but not properly implemented. I remember that some EU countries complained that they were sharing data with the USA, but not getting anything back in return.

It seems that has changed since.
 
#20
kurwo2f9hofak said:
That's interesting. I thought the reporting back from the USA to other countries was part of the deal, but not properly implemented. I remember that some EU countries complained that they were sharing data with the USA, but not getting anything back in return.

It seems that has changed since.
Click to expand...
a brokerage account in Puerto Rico would be great because of being exempt of FATCA
 
  • Like
Reactions: seabreeze
Register now
You must login or register to view hidden content on this page.
You must log in or register to reply here.
Offshore Bank Accounts

Forum Announcement

Latest Threads

Offshore Bank Accounts
Top Bottom
Back