Revolut CRS 2023

[PinkCat]

I think that if the governement wants to know something about someone as they suspect a criminal offence, they can have a court order and the EMI will give everything they have. I mean that's my understanding with wise, they don't exchange data automatically, but if Wise suspects something will communicate to the tax authorities, and if the tax authorities needs to investigate they must make a request to Wise. Unsure if it needs to be a court order or not, might vary by country.

Why wise doesn't report automatically? Where are they based?

 

[karishi]

Why wise doesn't report automatically? Where are they based?

Because it's an EMI and CRS doesn't apply to EMIs, yet.
This is what they say on their website How does tax work with my Wise Account? | Wise Help Centre

What information do you report to tax authorities?
The answer to this changes based on which country you’re in. Certain Wise entities must comply with the global anti-tax evasion regimes, FATCA and CRS, due to the type of products they offer. For example, our newest product, Assets, causes a subsidiary of Wise, TINV Ltd., which provides the Assets product to fall within the scope of FATCA and CRS as a Custodial Institution. Customers that participate in Assets who are deemed to be reportable persons (see our FAQ) will be reported to HMRC in line with the Automatic Exchange of Information.

Wise Australia Pty Ltd, another subsidiary of Wise, is also subject to FATCA and CRS due to the Authorised deposit-taking institution (ADI) licence it holds.

Wise is working directly with the Electronic Money Association (EMA) and the Organisation for Economic Co-operation (OECD) to ensure our processes and products combat any tax evasion. As and when Wise is obligated to collect and report customer tax and financial information to tax authorities we will do so.

In addition to tax requirements, other regulations may require Wise to collect certain data, like transactions over a certain threshold, and report it to regulatory bodies. Our Terms and Conditions of each entity provide more information about the what we may need to report to different tax authorities.

So when forced to report, they report, when they suspect something they might report. Normal accounts fall under the EMI license which doesn't force them to report.
But they do a lot of KYC, in my experience every year they asked for something different. And, like you can read on the forum, they often close accounts if you can't provide proof of funds or they don't like what you do or you violate their terms of service ( Wise deactivated my business account )

 

[alexgored2]

I was asking their support what they report in crs. They said only the balance and tax id /name etc. But, when i asked them do they report all the income they replied SUPER unclear:
- if the concerned govt agency/inst contacts with the legal order to share the information about specific individual.
and the rest of discussion they just pointed out the aforementioned statement.
when I asked do you report it annually they say
- 'you are correct' or till we get contRacted by the govt agency.
When I asked was that reported before it became a Revolut bank (from revlut payments uab)?
- Nothing has changed for your account, (i.e. what I understood - we reported before as well)
When I asked how will you report my income if I deposited my money before you became a Bank?
- Nothing has changed for your account. (the same yes)

now I see in my statement that before merge I had one account, after merge another account. That means that i will have two incomes, i.e. I deposited 3000 eur to account A, then it was moved to account B, so in total i will be reported as 3000+3000 euros. That is perfect!

Also, there was one person, that person shared their CRS report from N24 bank to their tax office in Belgium, so it states end year balance only and the INTEREST. (if any). no any other income numbers.

And that was the only proof I have ever seen. Also, revolut states that they report end-year balance only.

And a super interesting question what is the top line when income you may receive to your account can become a question from concerned authorities? is it 1k or 10k or 100k?
I just wonder if it makes a sense in general to report income. it can be so that you transfer funds from one your account to another your account and then back - so just moving one K a day between your own accounts will generate a report of 365k x 2 income. that makes no sense.
If you go deep into the details of OECD specification it says that for depository accounts they report interest rate only. (besides end year balance)

 

[pixbix]

And a super interesting question what is the top line when income you may receive to your account can become a question from concerned authorities? is it 1k or 10k or 100k?
I just wonder if it makes a sense in general to report income. it can be so that you transfer funds from one your account to another your account and then back - so just moving one K a day between your own accounts will generate a report of 365k x 2 income. that makes no sense.
If you go deep into the details of OECD specification it says that for depository accounts they report interest rate only. (besides end year balance)

Some countries, not limtied to Romania will come after you even for 50$, they will ask for bank statements, knowing they can "deep 5-8 years back" and fxxx you a little bit harder.

 

[alexgored2]

Some countries, not limtied to Romania will come after you even for 50$, they will ask for bank statements, knowing they can "deep 5-8 years back" and fxxx you a little bit harder.

Interesting. you can use this revolut on your own just because it is convenient tool. really it is so. And making transfers from your own bank you receive the officially taxed wages to and so on. Your turnover can be thousands or even more, if you for example use it on daily basis or buy air-tickets, rent booking and so on.. So will the taxman always be triggered for that? Revolut has nowadays 25 millions of users and the majority of them are not lithuanians. I can imagine the amount of work to trigger for each 50 euros income to their accounts.. just wonder.

 

[pixbix]

Interesting. you can use this revolut on your own just because it is convenient tool. really it is so. And making transfers from your own bank you receive the officially taxed wages to and so on. Your turnover can be thousands or even more, if you for example use it on daily basis or buy air-tickets, rent booking and so on.. So will the taxman always be triggered for that? Revolut has nowadays 25 millions of users and the majority of them are not lithuanians. I can imagine the amount of work to trigger for each 50 euros income to their accounts.. just wonder.

no. revolut gives a CRS XML file to Lithuanian goverment. Lithuia will send it to all countries. Countries like Romania will just send paper, even for 10$, asking for "bank statements" hoping they can get you for what you did in 2018 for example, or 2015.... so they can just tax the sxxx out of you.
This is what I don't like about Romania. let's say you took a job in Uk,and you took 3000$ to install a floor , but only 1000$ is yours, as you paid 2000$ for materials. you also get some expenses (gas, car , repair) they will come 8 years later and take the whole 3000$ from you. they will tax you the 3000$, that will be 3000$ or a little more, because they will also ask the inflation and penalization ,etc.
they will then not accept the 2000$ bill you had to buy the materials, and so on.
Romania is good only to play by the rules, for the 1% micro companies. If you cheat on that 1%, the tax is not 1% but 16% + inflation + penalization , so you will pay everything.

people complain about Romanian IRS a lot. for example, they came back 8 years for a lady who fixed the shop she rented. IRS told her that they can not deduct those things, because she doesn't own the location, and the owner should repair the shop. her business was over 1 500 000euro in revenue so she was taxed at 16%. they bankrupt her with a smile on their face.