Our valued sponsor

Never Declared Income - Gotta Start Now

@speedster - but not the entire time. Since I started income, I’ve been maybe 50% of the time out. Since the beginning of 2016, I haven’t spent more than 30 days in the country.

@ WowNull, I think the limit at customs is $26.000 for UAE. I just checked online.

@ Vohogis - This is the part that I’m not comfortable with. The fastest line from A to B is to go to the IRS authority, get a tax ID and be done with it. I don’t have one so technically, I don’t have taxes to pay, unless my national security number is my tax ID.

But they’ll be like -

“Okaaayy... and how did you support yourself in the last ten years?“

@Nomad - I may be wrong but from what I’ve seen, when you are living outside of my country and you are earning money from an outside employer, that income is not taxable. If you are living inside and you have an outside source of income, it is taxable.

My concern is for all the years in which I was basically doing tax evasion by staying there and not declaring anything. The stature of limitations is five years but I wouldn’t count of that too much. But this I’m definitely discussing with a lawyer as soon as I get to Europe. Even if I don’t go this route (get a tax ID in my home country), I want to see where I stand legally.
 
EU - Yes, EU passport.
You have a lucky ticket. Plus you have a big bonus, your country doesn't see you as a tax resident since you were absent.
Just don't do extra steps, don't make a labyrinth, do simple steps.
To get tax id in your country of birth, I think this is your first safe and simple step. But be sure about "your country doesn't see you as a tax resident since you were absent. "
 
In case if it possible "your country doesn't see you as a tax resident"
This task has another simple decision, just live with that tax id, and work abroad, open a company where you want, then change calmly settle down with new tax residency in any place, like Panama).
Because banks like when your place of birth and tax id place are the same. Just need to check with authorities in your country, who are you "tax resident or not", this is the key to start.
 
If the authorities will say that you always been as a tax residence, despite on fact of your absent, then you have a problem. Hire good tax consultant in your country of birth. Who will answer with exact explanation links to all tax clauses.
 
@ It’s very likely they see me as a tax resident because to change my tax residency, I actually had to make a request. I’ve never made this request. But it’s also that I’m kind in a limbo. For example, I’m unemployed technically but I never took social help. Health insurance is not paid but I am on my father’s health insurance. Unless they’ve done something which I don’t know, I’m in the same tax situation as when I was in high-school, not earning income, not unemployed. I never received ANY notifications from the tax authority, ever.

@ I’ll get a tax attorney to help.

@ Yes, that’s what I’m saying - I’m willing just to go somewhere, settle down and be there. I don’t intend on ever returning to my country apart for renewing my passport. Fortunately, even if I had a tax problem, they can’t (I think) deny me a new passport. But since no citation or request has been submitted so far, I think it’s fine. I’ll be there to renew my passport and also talk with a lawyer.

If I am to settle somewhere, I’d rather go to Taiwan or a place I actually enjoy, than Cyprus, even if I pay more. But this is my plan. Start anew. I hope I can do that.

Now I also hope I won’t trigger any red flags when I fly with almost the maximum allowed on me in cash. As far as I know, I don’t have to declare this sum.

Thank you. I know what’s my next step now.
 
Your income earned outside of Romania is not taxable in Romania. I'd strongly consider contacting the tax authority saying you've been travelling since you left school and are now returning to Romania so would like to register for tax. At worst they'll issue a small fine for failure to submit your tax returns / inform them of your departure but most likely they'll be all too glad to welcome you back.
 
Okay... but I haven't been traveling since I've finished high-school.

I've been traveling only 4 out of 10 years. The other six years are income generating without declaring. I mean, they can check that, can't they? It's not hard to check if one person was inside a country or not.

So for the purpose of explaining, let's say this happened over ten years.

About six years I was in this country. I've used local bank accounts that are now closed. I've also used Western Union and Payoneer to some degree. And four years outside the country. I've used almost exclusively Payoneer and actual cash.

You both make a good point, and I've already made a plan to talk with a tax lawyer. But what do I do about the six years of income that I'm actually taxable for? Do I spend one more year outside the country and wait until the statute of limitation expires? Does the statute of limitations even apply to this? I guess a lawyer will tell me. Am I overthinking this?
 
Last edited:
I heard people giving "gambling" as justification for bringing cash to a bank in countries where it's allowed without more question asked, might want to look into that. You could open an account in a non CRS country that would allow that.

statute of limitation apply after you have declared your taxes, it is the time allowed to the administration for debating your tax return and asking you for more. In your case that likely won't help.

whatever bank account was in your name you better assume they can access it if they want closed or not.

what amount are we talking about in USD, 5, 6, 7 digits ?
depending on the amount for those 6 years I would just pretends it was earned overseas afterward. unless you left traces in banks in your country in this case don't ever register for tax in your country, get a tax id somewhere else and that's it.
 
@ Giving up on citizenship - Well, until I marry or buy another citizenship, that may be too extreme.

@ Solution. I agree. I know what to do. I'll have a tax lawyer advise me on how to do this properly but it seems my liability is far smaller than I thought.

@ Nomad, thank you. I wasn't aware of the statute of limitation working that way. I guess that it's up five, low six figures while I was there. Now it's a lot more but I'm not worried about now.

This forum is truly great. I'm blown away by the expertise and how each gave his time to help. Thank you all. I'll update this in 30 - 60 days. If any other advice, I'm listening.
 
1. Romania has a worldwide taxation system that means that they will tax on all your income no matter if you lived there or not.
2. As long as you are a tax resident in Romania, and you are for sure as you did not change that, you have to declare and pay tax there.

Worst case scenario: some of the financial institutions you used reported you to Romania, the tax authority will calculate the tax you owe, all the social security contributions, will add a huge % as an interest rate. If you have any bank accounts or properties in Romania they will seize them.
Unlikely, but possible and pretty easy, they can go after your bank accounts within the EU especially if they know where they are.
If you have accounts outside the EU the chances they will be able to seize them is 0.1% and if we are not talking of hundreds of thousands of euros they will not even bother.
Eventually all your debts will be prescribed and you will be good as new.

Best case scenario: Nobody reported you so the fiscal authority thinks you either work somewhere else and forgot to change your fiscal residency or you just do not work at all. If they do not see any financial movement on your accounts or if nobody reports you they can not do anything about it.
You may want for example to obtain a residence in Portugal, register as a non dom (NHR) tax resident so you will not pay tax on foreign sourced income for 10 years.
Once registered, with the Portuguese tax certificate you can cancel your Romanian tax residence.
As a freelancer with the NHR residency you might be taxed in Portugal but you are for example exempt to pay tax on foreign dividends. So you can easily open a company in a lower tax jurisdiction (but not a tax heaven because then Portugal will tax you), get the dividends from there and pay 0% in Portugal.

Good luck!
 

Latest Threads