Trading Tax related issue!

[Frostmind]

Hello,

i am a citizen of 2 counties, 1 CRS with tax on capital gain and another non CRS with no tax, however i am currently a resident of the CRS country.

The plan is not to withdraw my profit from my forex trading account, until i move to the non CRS country and revoke the CRS as my tax base.

My 2 questions are:

1) Can my current CRS country where i am resident find out in any way that i am not paying tax on my trading profit if i don't withdraw any money from my trading account to my bank?

2) Even if i am using my credit card to deposit more money into the trading account?

Thank you for your time and appreciate the feedback!

 

[CaptK]

Depending on your first nationality there are time limits as to when you are no longer deemed a tax resident. Your thinking is good but I would change the address of your trading account first before you start making withdrawals.

You have already linked the trading account to your credit card so there is a link. Its just luck now if it is flagged or not. 9/10 its not.

 

[Frostmind]

Thank you very much @CaptK for your insight!

i will definitely change the trading account address before withdrawal.

How is it usually flagged and reported to the tax authorities, from withdrawal? or deposit? or both?

 

[CaptK]

Thank you very much @CaptK for your insight!

i will definitely change the trading account address before withdrawal.

How is it usually flagged and reported to the tax authorities, from withdrawal? or deposit? or both?

There is no actual structure it could be the stupidest reason that you get flagged.
Or like Denmark do every couple years they request all the ATM withdrawals information. Then take out all the local banks. Then matchup all the transactions against accounts.
Then cross reference it with citizens names and if you are regularly going to the cash point to withdraw you will have to explain why.
Then your tax bill comes.