Do EMIs comply with CRS just like any bank or there is difference?

[Jessie]

Do EMI exchange information for "reportable accounts" just like any bank would do or there is difference?
Do they report every account or it usually has to be over certain amount?

 

[totlori9]

Yes, EMIs located in CRS countries fall under the same CRS rules as banks.

 

[Tax Cow]

They sure will. EMIs are underpinned by licensed banks and payment institutions.

Not any different to vanilla banks, they are obliged to collect and report your data to local tax authority who in turn shares that information across the borders, with the tax office in your country of residence. Requirements are the following - A) your country of residence also participates in CRS/AEOI... AND b) your country of residence has entered mutual information exchange relationship with the country you bank in.

- Note that not all CRS/AEOI countries exchange information with each-other, it's more like a dating game - everyone wants to pick the partners they can benefit from. EU is an exception - there's a directive that CRS/AEOI information is shared among all members regardless of political preference. No cherry-picking allowed. Active exchange relationships are documented on OECD website: Exchange relationships - Organisation for Economic Co-operation and Development

 

[negon]

You want to have a look here EU: 5th EU Anti-Money Laundering Directive published. AKA EU will know anything about you!

 

[Jessie]

I see, but do they report EVERY account or only over certain amount?

I mean they use the term "reportable account" which sounds like they don't report every account but I can't find anywhere what makes an account reportable.
Only on one place I glanced that every country has different rules for what makes reportable, but again can't find the specific rules for each country anywhere.

 

[negon]

They report every account. There are TONS of information on this forum about this and endless discussions about the same. All with 1 conclusion, ALL accounts get reported.

 

[Tax Cow]

I see, but do they report EVERY account or only over certain amount?

I mean they use the term "reportable account" which sounds like they don't report every account but I can't find anywhere what makes an account reportable.
Only on one place I glanced that every country has different rules for what makes reportable, but again can't find the specific rules for each country anywhere.

Keep your calm.

No tax office in the world has time to look into all CRS information they get. If a tax office gets reports of 5 million accounts held abroad by their residents, you can bet they will never under any circumstance investigate more than 10% of accounts. Naturally, they will set their own criteria of what is worth a closer look.

Do not take this for granted, but if you live in a big country, having your tax office contact you about your 25,000 euros/pounds held abroad is EXTREMELY unlikely. So getting reported may or may not matter. If you live in a country of 500,000 residents, your chances of getting investigated will be much higher even on low account balances.

Flag theory is still relevant despite CRS. Get reported on 25K to country A, then get reported on 50K to country B and so on. If you have residency documents from many countries, you can spread your cash around and mitigate tax risk.

 

[Jessie]

Keep your calm.

No tax office in the world has time to look into all CRS information they get. If a tax office gets reports of 5 million accounts held abroad by their residents, you can bet they will never under any circumstance investigate more than 10% of accounts. Naturally, they will set their own criteria of what is worth a closer look.

Do not take this for granted, but if you live in a big country, having your tax office contact you about your 25,000 euros/pounds held abroad is EXTREMELY unlikely. So getting reported may or may not matter. If you live in a country of 500,000 residents, your chances of getting investigated will be much higher even on low account balances.

Flag theory is still relevant despite CRS. Get reported on 25K to country A, then get reported on 50K to country B and so on. If you have residency documents from many countries, you can spread your cash around and mitigate tax risk.

Which countries are easy to get residence documents in?

 

[challenge]

Do not take this for granted, but if you live in a big country, having your tax office contact you about your 25,000 euros/pounds held abroad is EXTREMELY unlikely. So getting reported may or may not matter. If you live in a country of 500,000 residents, your chances of getting investigated will be much higher even on low account balances.

You're very wrong about them not contacting you for 25k... talking about bank accounts here not EMIs.
They will write everyone on the report as long as there is a tax ID number (TIN) on it. They have automatic processes to do it, no human intervention needed.
Computers will read the report: "for each resident taxpayer in the list -> print 'scary letter' ". Then scary letters will be sent: we know you have a bank account there, amount X. Please declare it on your tax return and pay the missing Y tax plus the late filing fees etc.

Is it true that they don't have the resources to enforce it for the small accounts, but believe me, once the 'scary letters' will come to your door, that will be enough for many to pay voluntarily and call it a day.

 

[Tax Cow]

@challenge

What is this reply? I said that tax offices will not have time to INVESTIGATE all CRS information they get. There's not one tax office in world that has the time and resource.

Never said anything about banks not reporting 25K accounts...

You're very wrong about them not contacting you for 25k... talking about bank accounts here not EMIs.
They will write everyone on the report as long as there is a tax ID number (TIN) on it. They have automatic processes to do it, no human intervention needed.
Computers will read the report: "for each resident taxpayer in the list -> print 'scary letter' ". Then scary letters will be sent: we know you have a bank account there, amount X. Please declare it on your tax return and pay the missing Y tax plus the late filing fees etc.

Is it true that they don't have the resources to enforce it for the small accounts, but believe me, once the 'scary letters' will come to your door, that will be enough for many to pay voluntarily and call it a day.

Okay, clear

You mean they first intimidate you with no investigation. That's possible. Of course, from the CRS information alone they cannot tell whether the funds in the other country's bank account are taxable income, obtained via a loan, or if the funds were earned in previous tax years. Professional tax office would first figure that out before sending any letters around, but we'll have to wait and see. Naturally, some countries may want to hold a professional line while others may blatantly "spam" their residents with intimidation letters.

 

[Jessie]

You're very wrong about them not contacting you for 25k... talking about bank accounts here not EMIs.

Do you think they treat EMIs differently?
What are the reasons?

Because if that is the case I can spread money over many EMIs, there are plenty nowadays and so easy to setup.

 

[void]

They report every account. There are TONS of information on this forum about this and endless discussions about the same. All with 1 conclusion, ALL accounts get reported.

So Skrill/Neteller, Transferwise, Mistertango, ePayments and many others are simply lying to their clients about not reporting their account ownership? If that's what you're saying, why would they do it and compromise their reputation?

 

[blizz]

So Skrill/Neteller, Transferwise, Mistertango, ePayments and many others are simply lying to their clients about not reporting their account ownership? If that's what you're saying, why would they do it and compromise their reputation?

the exact same said my banker for 2 years back. I asked if they reported any accounts under CRS. He didn't knew what I was talking about and said they wouldn't report anything. Today everything get reported. I don't know if that costs their reputation or if they lost customers because of this, but they are still there

 

[Jessie]

So Skrill/Neteller, Transferwise, Mistertango, ePayments and many others are simply lying to their clients about not reporting their account ownership? If that's what you're saying, why would they do it and compromise their reputation?

They've actually said they don't report? Can you show source please.

What about revolut?

 

[blizz]

They've actually said they don't report? Can you show source please.

What about revolut?

Seems another troll entered the forum

 

[void]

They've actually said they don't report?

Skrill, Neteller, Transferwise and ePayments explicitly declare NO REPORTING - nowadays every body understands what CRS means - it's not because of they don't know what it stands for
I don't remember if I ever asked Mistertango, but I believe it's about the same

 

[Jessie]

You sure they said that in the context of CRS? That would make them illegal.
Care to link to source where they state that?

 

[Tax Cow]

When you say an EMI/Bank/Other institution does not report you under CRS, you must make it clear under what circumstance.

It's true that not all accounts are reportable, but those accounts do not provide you with unique IBAN/Routing code. This means you have a POOLED ACCOUNT and you have NO POSSIBILITY to receive payments IN YOUR OWN NAME.

Pooled accounts, as for 2018, 2019 are not reportable under CRS. It does not matter if you have that account with vanilla bank or EMI. Nobody knows what the future brings. If you have no need to receive payments under your own name, or company's name, for the time being, a pooled account with shared IBAN/Routing code will do...

 

[blizz]

You sure they said that in the context of CRS? That would make them illegal.
Care to link to source where they state that?

You are insane.. your posting behaviour looks like you are trolling the forum!

I wrote that I spoke to the bank to years ago. You ask for a link, say something is illegal, are you an idiot oh no, sorry, you are trolling the forum wonder when Admin will pull the BAN hammer.

 

[Jessie]

When you say an EMI/Bank/Other institution does not report you under CRS, you must make it clear under what circumstance.

It's true that not all accounts are reportable, but those accounts do not provide you with unique IBAN/Routing code. This means you have a POOLED ACCOUNT and you have NO POSSIBILITY to receive payments IN YOUR OWN NAME.

Pooled accounts, as for 2018, 2019 are not reportable under CRS. It does not matter if you have that account with vanilla bank or EMI. Nobody knows what the future brings. If you have no need to receive payments under your own name, or company's name, for the time being, a pooled account with shared IBAN/Routing code will do...

Most EMIs provide unique IBAN that you can use to receive wires to your name nowadays.
I suppose those are reportable?