EMI's reporting tax to your local IRS

[Aleksandr Prilepa]

Hey! Do EMI's send annual reports to your local IRS? (eg. deposit amounts) If so, do you have to exceed some amount for them to be obligated to send the reports? I am EU based and sent an email to Revolut about this and got the following response:

Thank you for your email. Please note that Revolut is not a bank. Therefore the regulations regarding reporting to IRS might be different from your regular account you hold at your bank.

Revolut is authorised by the Financial Conduct Authority under the Electronic Money Regulations 2011 for the issuing of electronic money and payment instruments with the reference number 900562.

Thanks!

 

[negon]

That's actually great news, however, I believe they will still be deemed to report you sooner or later. So far it's good news, thanks for sharing

 

[Aleksandr Prilepa]

I suppose that you could assume from such a vague response that they're not reporting their clients activities to the local authorities but then again don't want to encourage tax evasion either.. Yeah, "deemed to report sooner or later" is probably correct. For an accurate answer would probably need to look up their jurisdiction and read up on the laws for EMI's for reporting.

 

[sllalow]

How can I get a Revolut account if I don't live in the UK and don't have european citizenship? Is that possible?

 

[JohnLocke]

How can I get a Revolut account if I don't live in the UK and don't have european citizenship? Is that possible?

It makes no sense to post in all threads the same questions! Please don't do that again.

You can't open an account with Revolut if they don't support your country. You may look for a different service provider like mistertango or similar service.

 

[jauser]

Revolut is looking to get banking license so if you want avoid reporting to your local IRS then avoid Revolut..

 

[Aleksandr Prilepa]

Thanks. Then again aren't all EMI's eventually looking to get a banking license?

 

[lostguy]

Thanks. Then again aren't all EMI's eventually looking to get a banking license?

No, no, no - I believe there is a huge market for financial service providers which don't need to be regulated as a bank!

 

[void]

I believe there is a huge market for financial service providers which don't need to be regulated as a bank!

yes there is a big potential for EMIs nowadays and the reason is obvious - lots of customers that want to avoid violating their privacy (and covering dirty business and tax evasion too of course)
this is also the reason that it can't last forever - actually I'm worried that we have like 2 years before the difference between banks and EMIs will disappear and there will be reporting of not only ownership and balance but also turnover, maybe more
I already asked in some other thread about opinion of others - got no response, maybe someone has some information or timing? - but it's inevitable, we all know that

 

[Aleksandr Prilepa]

Only viable way is to use fall guys or "darks" like this forum likes to call them.

 

[JohnLocke]

Don't you guys believe that Crypto currency will be the replacement for most of the banking / EMI services around?

 

[void]

Don't you guys believe that Crypto currency will be the replacement for most of the banking / EMI services around?

Eventually, yes.
In the next 2-3 years, no way. 5 years, hardly. 10 years, maybe. But what I know?
Either way there will be some inconvenient gap between the point when the regulations will catch us fully and when reasonably usable replacement will be available (and this is not crypto how it looks nowadays for sure).
I'm truly worried about retroactive reporting of turnover and transactions - and in my case and people around me it's just about privacy and no grey/black reasons. Poor criminals avoiding taxes or laundering dirty money... maybe these guys are probably using someone else's identity already and don't care at all.

 

[lostguy]

Only viable way is to use fall guys or "darks" like this forum likes to call them.

seems to be the right answer for holding offshore companies - but what about active trading corps? won't it make a lot of troubles if you can't sign on behalf of this homless guy but need him to sign this and that?

I would pay a lot of money to know what the NeXT big thing is in regards to privacy and tax avoidance!

 

[extremedox101]

Don't you guys believe that Crypto currency will be the replacement for most of the banking / EMI services around?

yes , but we need to fight to support cryptocurrecny ... and EMI's will go away once they are online banks .

 

[extremedox101]

yes , but we need to fight to support cryptocurrecny ... and EMI's will go away once they are online banks .

EMI's will try to kiss a*s to tease traditional users by adopting crypto (doing business with the banks that okay with it and dropping the current one ) but more non-traditional users will run to fully crypto wallets and services to accept/spend payments .

 

[Aleksandr Prilepa]

@void: Your comment on privacy doesn't make much sense to me. Privacy from whom? If it's just privacy from the general public that you seek then you can utilize shell companies and simply keep on paying your taxes. Why would you even be worried about retroactive reporting if it's simply privacy that you're after? If it's privacy from the (local equivalent) of the IRS then why do you need privacy from them if you're operating with clean funds?

The way I like to look at things is, what's the worst possible scenario that can happen? And then build out my infrastructure so that if the worst case scenario does happen I'm still in the clear. Thus fall guys and fakes are the absolute safest option. Doesn't really matter if it's an EMI or a high street bank at the end of the day.

@lostguy: Forge the signatures.

 

[extremedox101]

@Aleksandr Prilepa

 

[void]

Your comment on privacy doesn't make much sense to me. Privacy from whom? If it's just privacy from the general public that you seek then you can utilize shell companies and simply keep on paying your taxes. Why would you even be worried about retroactive reporting if it's simply privacy that you're after? If it's privacy from the (local equivalent) of the IRS then why do you need privacy from them if you're operating with clean funds?

There is a sort of people you can call 'professional gambler' - poker players, sport bettors and traders, casino exploiters, ...
Money they make are typically tax-free or the tax rate is quite low (~15%).
Privacy matters for them because the source of income and ways of cashing it out is part of their knowhow very often.
In many countries there are also restrictions where you are allowed to gamble and if you don't comply you risk significant penalties.
Also multi accounting setup is often involved which is another thing you don't want to disclose through transactions.
You should also value privacy as you basic right and part of your personal security. Shell companies in this case are sometimes possible but are highly inefficient since income is never tax-free and the rates are much higher (effective rate ~30-35%).

 

[lostman]

@extremedox101 LoL what is this image about ?

 

[Aleksandr Prilepa]

There is a sort of people you can call 'professional gambler' - poker players, sport bettors and traders, casino exploiters, ...
Money they make are typically tax-free or the tax rate is quite low (~15%).
Privacy matters for them because the source of income and ways of cashing it out is part of their knowhow very often.
In many countries there are also restrictions where you are allowed to gamble and if you don't comply you risk significant penalties.
Also multi accounting setup is often involved which is another thing you don't want to disclose through transactions.
You should also value privacy as you basic right and part of your personal security. Shell companies in this case are sometimes possible but are highly inefficient since income is never tax-free and the rates are much higher (effective rate ~30-35%).

Ah ok, makes sense.