Does EMI report account turnover to CRS?

[IllIlllIII]

I couldn't find Turnover attribute in CRS XML schema, instead I found Payment attribute.

Having a few questions:

1) What is Payment field in CRS specification, is it used as Turnover?
2) Do EMIs that comply with CRS report bank account turnover to tax authorities?

 

[Martin Everson]

1) What is Payment field in CRS specification, is it used as Turnover?

That section is used to report either Interest, Dividends, Gross Proceeds/Redemption or Other I believe. For a normal Depository Account it is used to report interest paid to it during the calendar year. It is a repeating section of the schema I believe so could contain multiple values.

2) Do EMIs that comply with CRS report bank account turnover to tax authorities?

Have a read of the below thread.

EMI no CRS

Dear friends, I ask you two questions: can you please tell me some EMIs that do not perform automatic exchange of information (CRS)? I am not interested in EMI with IBAN from Eastern Europe. I know and use TransferWise, on their website they claim that they do not exchange information, but...

www.offshorecorptalk.com

P.S Interesting username .

 

[zzzzzz]

@Martin Everson what is the point of gross proceeds section (custodial account)? An indication of trading activity? As it doesn't tell anything about how much profit/loss you made.

 

[Martin Everson]

@Martin Everson what is the point of gross proceeds section (custodial account)? An indication of trading activity? As it doesn't tell anything about how much profit/loss you made.

It tells taxman about capital gains basically.

For example you bought Tesla stock for $200 and sold it for $1000. That's a gross proceed of $1000 and hence a capital gain of $800 gain. Tax man nay be interested in it...lol.

 

[IllIlllIII]

That section is used to report either Interest, Dividends, Gross Proceeds/Redemption or Other I believe. For a normal Depository Account it is used to report interest paid to it during the calendar year. It is a repeating section of the schema I believe so could contain multiple values.




Have a read of the below thread.

EMI no CRS

Dear friends, I ask you two questions: can you please tell me some EMIs that do not perform automatic exchange of information (CRS)? I am not interested in EMI with IBAN from Eastern Europe. I know and use TransferWise, on their website they claim that they do not exchange information, but...

www.offshorecorptalk.com

P.S Interesting username .

Thanks for the reply @Martin Everson , but I still don't see whether Turnover is reported to CRS. Somewhere I read it is reported, but other sources say opposite . If Turnover is reported, then it is a game changer and circumvention of CRS by zeroing bank account via moving fiat to crypto before 31 of December is simply not working solution.
Would like to hear clarification on this matter.

 

[Martin Everson]

Thanks for the reply @Martin Everson , but I still don't see whether Turnover is reported to CRS. Somewhere I read it is reported, but other sources say opposite . If Turnover is reported, then it is a game changer and circumvention of CRS by zeroing bank account via moving fiat to crypto before 31 of December is simply not working solution.
Would like to hear clarification on this matter.

Is that your strategy to avoid CRS? That's like parking in a no parking zone and only moving your car when you see the traffic warden coming .

For Deposit Accounts it does not appear turnover can be deduced when just interest paid or credited is reported. Although some banks like HSBC etc claim to report payments credited. Which makes me wonder if they use the CRS504 "Other" field to report this data in there.

 

[IllIlllIII]

@Martin Everson , I read that withdrawing money before 31 of December is viable strategy, but I don't rely only on this option, since I can't confirm whether Turnover is reported.

You said about Depository accounts and what about Checking accounts or other types? I'm interested in crypto trading that generates a huge Turnover over time in a bank account.
So, zero balance in account with huge Turnover could potentially attract unwanted attention.

Exerpt from the link you provided Frequently asked questions | Common Reporting Standard (CRS) | HSBC:

What information will be reported to tax authorities?​

• the balance or value
• the total amounts of interest or payments credited

The last clause "the total amounts of interest or payments credited" I also saw in official CRS documentation.

So, each time I deposit to an account, would it increase payments credited CRS attribute (aka Payment attribute)? If yes, then Turnover is reported .

 

[Martin Everson]

You said about Depository accounts and what about Checking accounts or other types?

Different accounts are all handled differently according to CRS. For Deposit and checking I don't think there is much difference in handling.

So, each time I deposit to an account, would it increase payments credited CRS attribute (aka Payment attribute)? If yes, then Turnover is reported

The payment credited is more related to "interest payment" credited when it comes to Deposit accounts.

@Martin Everson , I read that withdrawing money before 31 of December is viable strategy, but I don't rely only on this option, since I can't confirm whether Turnover is reported.

I am not entirely sure all countries are following that reporting date. Some may be using their own tax year as reporting period.

For example in South Africa:

"Under the CRS return notice, RFIs must submit CRS returns for every reporting period commencing 1 March and ending the last day of February the following year, by 31 May of each year commencing in 2017."

Automatic Exchange of Information | South African Revenue Service

What’s New? 10 February 2023 – Updated Clarification document for AEOI (FATCA) Reporting TIN Codes The purpose of this document is to clarify the application of the supplied codes for the Taxpayer Identification Number (TIN) data fields for FATCA submissions. This version 3 was updated to align...

www.sars.gov.za

So again it could be risky for you depending on how the country where your money is handles CRS reporting. Each country will have there own local guidance for RFI's.