PayPal and CRS

[kkein]

I always wondered what paypal does wrt. CRS.
IIRC i haven't provided my TIN nor my residency to paypal, just my shipping addresses (various, in various countries) and credit cards/bank accounts.
What if i now remove all that, and use a new card. Are they obliged or do they report my payments to authorities, and, in particular, the sources of funds?

 

[JohnLocke]

As far as I have noticed they are obligated to do so at least in some of the European countries I know about but it does not look like that it works.

 

[Martin Everson]

PP in EU is a Luxembourg bank and if your account is with them then they report.

PayPal

 

[Educate]

PP in EU is a Luxembourg bank and if your account is with them then they report.

PayPal

I don't think they report anything. There have been no actual cases of something being reported via paypal to respective domicile countries and someone caring. If there is no trail to your actual bank account in the respective country, then nobody cares. CRS was supposed to start in 2018 right? It's 2020 and there are still no reports of anyone actually getting taken for a ride by tax authorities.

Also, if paypal DOES report, they are reporting BALANCE at end of year.

So just empty it before year ends.

Another method would be obfuscation, indicating incorrect address, maybe even a different country on your paypal, so the data gets mangled and sent elsewhere and basically is lost in process.

 

[kkein]

So basically if the use case is to buy in country X with a card you don't want country X to know about, regardless of where paypal reports, it should be fine to link the card to paypal account, and use it to purchase?
In other words, tax authorities get only balance from PP, not list of purchases or source of funds for those?

 

[Martin Everson]

Taxman is interested in taxes not whether you bought a Macbook pro or a penis enlargement kit. The source of funds and anything you do illegally with the money is a police matter generally speaking which the taxman will 100% assist with.

 

[RSGM]

Paypal US is MUCH more compliant with the IRS.
I know if you receive 10K USD+ anually with a US registered Paypal account that this normally gets reported.
EU Paypals I wouldn't worry too much about CRS agreements.

 

[ChadMuska]

Are you guys discussing PP business account or personal?

 

[Martin Everson]

Welcome to the forum but this thread is 4 years old you are replying to. Please take note of date of threads when replying.