Ukrainian with ~100k in a Liechtenstein bank - How to avoid being reported via CRS?

[Toly]

It's all in the subject. The account is of an individual, not a company.

 

[polonieth]

Ask Zelensky; he's done something similar, albeit with a few more 0s on the end of his balance

Where are you a resident and tax resident?

 

[JackAlabama]

Ask Zelensky; he's done something similar, albeit with a few more 0s on the end of his balance

Where are you a resident and tax resident?

as a billionaire like Z, its pretty easy to do. But with 100k, not that much. Choices are limited and base line cost eat a big chunk out of it.
With 100k, best is to exit the banking system.

 

[Toly]

Ask Zelensky; he's done something similar, albeit with a few more 0s on the end of his balance

Where are you a resident and tax resident?

I did not vote for the Clown.
It is Ukraine and Ukraine.

 

[Martin Everson]

100k is only 100 x 1000CHF bank notes. @JackAlabama is right.

Me personally I would have this money in my pocket and not a bank. Just carry around the bank withdrawal slip in case anyone asks later.

 

[Sols]

Take up residence in a place where there is no CRS applicable or where CRS doesn't matter.

Exit banking (cash).

Exit fiat (buy crypto).

Put the money somewhere out of scope of CRS, such as an investment in a company you don't own. The amount is too low for a sophisticated trust/foundation type setup to be worthwhile, not to mention the unfortunate complications of being Ukrainian resident.

Furthermore, it's probably too late to avoid CRS for this and previous years. Anything you do today would likely only prevent/change CRS for 2025.

 

[Don]

Have you opened an account, or do you plan to do so?

For reporting to be triggered, it's important to know what information you provided to them, so in case you have already opened the account, let us know what information you provided them. e.g., your Ukrainian utility bill, etc.?

What's more, it's important to understand who is reported for the purpose of CRS. Normally, it's someone who is considered to be the Account Holder, which might not be the person in whose name the account has been opened.

The term “Account Holder” means the person listed or identified as the holder of a Financial Account by the Financial Institution that maintains the account. A person, other than a Financial Institution, holding a Financial Account for the benefit or account of another person as agent, custodian, nominee, signatory, investment advisor, or intermediary, is not treated as holding the account for purposes of the Common Reporting Standard, and such other person is treated as holding the account.

 

[Marshal]

as a billionaire like Z, its pretty easy to do. But with 100k, not that much. Choices are limited and base line cost eat a big chunk out of it.
With 100k, best is to exit the banking system.

Agree. Makes more sense just to keep it in a safe deposit box, or perhaps get residency in another EU country. Easy with a Ukrainian passport. But it might be a bit tricky to achieve if OP is unable to leave the country.

 

[Revoltec]

I thought CRS was only reported to your country of residence. So just provide your bank with a new address in some country and the CRS will be reported there, not to Ukraine, if that helps you? Or you want to avoid CRS completely?

 

[Sols]

I thought CRS was only reported to your country of residence.

Vast majority of times, that's the case. However, multi-jurisdiction reporting can and does happen. If a bank is unsure, they might report based on citizenship, based on previous residence, or other factors.

 

[Revoltec]

Vast majority of times, that's the case. However, multi-jurisdiction reporting can and does happen. If a bank is unsure, they might report based on citizenship, based on previous residence, or other factors.

They are not allowed to report to last country of residence if they accept your new one (which they should notify you about if they dont). Also they are not allowed to use the citizenship. You can read about this in the commentary and manual for CRS reporting issued by the OECD.

Multi-juristdiction reporting happens only if you give them multiple residences or addresses.

However, they could use information from other accounts you have with them freely if they crossmatch you as the owner.

 

[Forester]

You can read about this in the commentary and manual for CRS reporting issued by the OECD.

Could you please point at this commentary and manual / the source? It will be greatly appreciated.

 

[jafo]

They are not allowed (BUT THEY CAN AND THEY WILL) to report to last country of residence if they accept your new one (which they should notify you about if they dont).

TIFIFY

In theory, you are correct. In practice, things work differently!

What are we going to do? Sue them? Either way, they win! Suing them means we have to fund the lawsuit with OUR hard-earned money in THEIR country with THEIR judges, and about 50% of that money goes to the coffers (their lawyers pay taxes, too) of THEIR country!

 

[Sols]

They are not allowed to report to last country of residence if they accept your new one (which they should notify you about if they dont). Also they are not allowed to use the citizenship. You can read about this in the commentary and manual for CRS reporting issued by the OECD.

What's allowed or not is ultimately up to law. CRS is a framework for information sharing. It's not a rulebook or law. Reporting by citizenship is absolutely something that can be done. At least, that's what I've heard from senior compliance staff at a couple of banks. It might vary by jurisdiction and how they have built their CRS reporting portal.

 

[John Spectre]

It's all in the subject. The account is of an individual, not a company.

If the money is in the account now, then there is nothing to do. In the first exchange, this information will already be included in any case.

100k is not a significant amount for anyone to chase after it. In a few years, if you still remain a resident of Ukraine, you will submit a zero declaration and legalize your money.


OR crypto/cash as suggested above

 

[Revoltec]

If the money is in the account now, then there is nothing to do. In the first exchange, this information will already be included in any case.

100k is not a significant amount for anyone to chase after it. In a few years, if you still remain a resident of Ukraine, you will submit a zero declaration and legalize your money.


OR crypto/cash as suggested above

The CRS is reported by the end of the year so he can still change the tax residency and by notifying the bank about it, it would only be forwarded to the new country of residence

Also, only the amount by the end of the year is reported

 

[Martin Everson]

The CRS is reported by the end of the year so he can still change the tax residency and by notifying the bank about it, it would only be forwarded to the new country of residence

Your account is reported to all countries you were resident in during the year. Changing residency before end of year makes zero difference.

 

[Marshal]

100k is not a significant amount for anyone to chase after it. In a few years, if you still remain a resident of Ukraine, you will submit a zero declaration and legalize your money.

Agree, it's not that big amount and it's out of reach of the Ukrainian government.

 

[Revoltec]

Your account is reported to all countries you were resident in during the year. Changing residency before end of year makes zero difference.

Any source on this?

 

[Martin Everson]

Any source on this?

Yes OECD faq sheet itself

https://www.revenue.gov.ws/wp-content/uploads/2020/10/CRS-related-FAQs.pdf

See page 3 - Residency Address Test.

I have talked about in in other threads years ago on here. You do not escape CRS just by changing address before end of year....lol.

P.S Seems OECD has update their website and every link I have saved to CRS manuals etc are now all broken. Even search engine results if you search for CRS implementation manuals are all broken