Swissquote vs. Saxo for keeping money

[Mr Magoo]

Anyone here know if Swissquote/Saxobank AUTOMATICALLY Every year reports your balance/sales with profits to your home countrys tax office?

Swissquote will report to your tax resident country and they will tell you at the beginning of the year via email and even mention what country they have on file as your tax resident country. Swiss gründlichkeit I would say.

 

[BlueMist]

SQ LU will report to wherever they wish to report you, they don't really take your application form or profile records seriously. I have had an account with them since a year and on my application form it clearly states UAE as residence, plus I have provided them hundreds of proofs that I am indeed a resident, utility bills, bank account statements etc... But they have decided that as I have provided multiple phone numbers to be reached at, since one of them was actually matching my citizenship country, they have decided to report it to my citizenship country lol

I don't know what happened to their great service that they used to provide being Internaxx... Now they don't respond even for 10+ days.

There is no RM to contact, so I am thinking about switching to Saxo or some reputable bank but the problem with banks is that they usually have quite high trading fees (e.g. BGL) and higher custody fees than the brokers. But probably 0.2% custody fees are acceptable...

 

[Martin Everson]

But they have decided that as I have provided multiple phone numbers to be reached at, since one of them was actually matching my citizenship country, they have decided to report it to my citizenship country lol

Yup that's CRS indicia like I said on here (see below post). Indicia is built into the CRS software these banks use. CRS Self declaration means nothing for CRS reporting purposes sadly . They report based on account indications as to where you are based most importantly not just what tax id and country you give.

Form to identify if I am a reportable person for purposes of CRS

Martin, are you Serious? So if I have given the bank 5 phone numbers, each in different country, am I, only because of that, going to be reported to 5 different jurisdicitions? It sounds unreasonable and will cause a huge mess all around the world for people to justify their tax residency. I...

www.offshorecorptalk.com

 

[Tax Cow]

Indicia is built into the CRS software these banks use. CRS Self declaration means nothing for CRS reporting purposes sadly . They report based on account indications as to where you are based most importantly not just what tax id and country you give.

Form to identify if I am a reportable person for purposes of CRS

Martin, are you Serious? So if I have given the bank 5 phone numbers, each in different country, am I, only because of that, going to be reported to 5 different jurisdicitions? It sounds unreasonable and will cause a huge mess all around the world for people to justify their tax residency. I...

www.offshorecorptalk.com

Self certification is a guaranteed report destination. Until contested and started from a scratch. Indica adds a second, and possibly third report destination at bank's discretion.

Could be some serious fun to block humping from 3 tax offices at the same time. Of course, the FIs couldn't care less.

 

[BlueMist]

I called SQ LU and and least they were knowledgable over the phone. They explained their reporting is based on CRS indicia and they do not report directly to the respective countries. They are obliged to report all accounts to Lux financial authority (CSSF I suppose) and it is up them which countries will be the accounts reported to. They advised to remove any unwanted connections e.g. phone numbers to avoid it.

Does it work similar in other countries, e.g. banks report to local financial authorities which they will decide where to report the accounts to or banks are directly reporting to foreign authorities?

 

[Tax Cow]

@BlueMist

From the tax authority where your offshore bank is based to your local tax authority. Never directly.

 

[Martin Everson]

Does it work similar in other countries, e.g. banks report to local financial authorities which they will decide where to report the accounts to or banks are directly reporting to foreign authorities?

That's how CRS works period. Banks/FI's can only report to their local authorities who then forward data to respective countries. Banks have no ability to report tax data to any foreign authority.

 

[BlueMist]

So how does it work on the national level? Bank in the same country as citizenship, it means local authorities will always know about your local bank accounts and balances, regardless of the CRS indicia, is that right?

 

[Tax Cow]

So how does it work on the national level? Bank in the same country as citizenship, it means local authorities will always know about your local bank accounts and balances, regardless of the CRS indicia, is that right?

Moo, yes, moo! Tax offices in the EU commonly jump on their own people for random 5 figure inflows which don't originate from relatives or known employers the subject works for. And even then, a cattle boy may reach out to enforce gift tax and scout for other milking opportunities.

Banks provided transaction activity to local tax authorities long before CRS was on the agenda.

 

[Martin Everson]

So how does it work on the national level? Bank in the same country as citizenship, it means local authorities will always know about your local bank accounts and balances, regardless of the CRS indicia, is that right?

Depending on your country the local authority will always know about your bank account in that country.

 

[Winston 77]

Does ING LU accept remote opening for non-EU residents?
I actually couldn't find any product offer in their website aimed for residents outside BE LU FR and DE

From ING.LU webesite:

In line with the current rules in terms of money laundering and with a view to validating your identification, you must send us a copy of your currently valid identification document and make a transfer of EUR 100 from an account you already hold in one of the following countries: Luxembourg, Belgium, France or Germany. This sum will be credited to your ING account in the event that your application to open an account is accepted, or returned to you if your application is refused.