Do tax authorities automatically check ownership of bank accounts abroad where you send or from where you receive money?

[gnud]

Let's say I own a company abroad, with employees, offices etc. and I own a company in my country of residency. If I decide to do a one time contract between these two entities and I'll send money (< 10k EUR) for the rendered services from a company in my country of residency to the company in the foreign country, will my tax authority automatically request information about the ownership of the foreign account which is receiving the money, in case they're in CRS-compliant countries and in case they're not? It wouldn't be anything illegal, but I'd like to avoid attracting attention of the taxman and potentially being scrutinized by a financial control and having to prove compliancy with CFC rules.

 

[bizniz]

No, to do so would be impractical. They might start Googling if they have suspicions.

 

[gnud]

No, to do so would be impractical. They might start Googling if they have suspicions.

Not sure if you're joking with the Googling ...

Anyway it should be easy to match owners, since they have it all in databases, both ownerships and transactions. Just wondering if they actually do it.

 

[JimBeam]

Under the CRS your foreign bank will send information about your account to your home country. That's it.

If you do business that way and it somehow becomes odd to the tax man they might do some checks but that's very big "if".

 

[gnud]

Under the CRS your foreign bank will send information about your account to your home country. That's it.

If you do business that way and it somehow becomes odd to the tax man they might do some checks but that's very big "if".

Even when it's a business account of an active non-financial company?

 

[JohnLocke]

Under the CRS your foreign bank will send information about your account to your home country. That's it.

correct, that is how it works. Believe me, tax offices around the entire Globe have crowned days after the introduction of CRS - they can safely sit back and wait for the information in their inbox.

 

[gnud]

correct, that is how it works. Believe me, tax offices around the entire Globe have crowned days after the introduction of CRS - they can safely sit back and wait for the information in their inbox.

Yeah but the CRS applies only to personal and passive investment accounts to my knowledge. Or do they report also regular business accounts of active companies if they're opened by a non-resident person?