Question What are your thoughts on this setup?

[Benzouser]

IM using alot of EMI since 5yr back.. no tax issues what so ever. . .

All my EMI is register to EU Country A.
In Country A as my native country and only country i have citienship in, This country i have no tax liabilities to as i have moved abroad to country B.
Country B is my current tax resident country. I have no TAX id in this country. Been lviing there on turist visa last 18yrs..not been asking to pay any tax as i have no income there. ( Country B is outside of EU zone )

So if my EMI now from 2024 start to send CRS reporting to country A. i guess they should forward it to country B. So when country B if they look up the emi details from the CRS and see that im now having any TAX id registred or not even inside the country.... as im intend to moving to country C later in 2023 and going to setup Tax id here and will be tax resident there first 2024, so i guess my CRS reports stops in country B.

OR is CRS a database that all tax jutistician can just enter and search freely? feel free to input my setup here.

 

[Mike Forman]

Did you change your address in your home country, here country A to the country you reside in? Did you break also all ties with country A (no assets, no credit cards, no transactions, no rental,..)

Since you have no income what is there then to declare from the EMI? If the EMI has income where do you report it and pay tax on it? Country A will receive the CRS info and might ask for your proof of residence as well proof you have paid taxes on it, which you don't have.

 

[zzzzzz]

No. Country A gets CRS data and can say you are tax resident in Country A as you're using benefits of this tax residence with EMI. They can start drilling for more info.
I was reading annual report of my taxman and they mentioned they get a lot of CRS data from people who used to be residents, but "forgot" to tell FI abroad about the change. So they start inquiring - are you really tax non-resident or not.
There is no central CRS database where countries could data mine over all 109 countries that participate in CRS.

 

[Benzouser]

Did you change your address in your home country, here country A to the country you reside in? Did you break also all ties with country A (no assets, no credit cards, no transactions, no rental,..)

Since you have no income what is there then to declare from the EMI? If the EMI has income where do you report it and pay tax on it? Country A will receive the CRS info and might ask for your proof of residence as well proof you have paid taxes on it, which you don't have.

yes broke all ties back in 2004

No. Country A gets CRS data and can say you are tax resident in Country A as you're using benefits of this tax residence with EMI. They can start drilling for more info.
I was reading annual report of my taxman and they mentioned they get a lot of CRS data from people who used to be residents, but "forgot" to tell FI abroad about the change. So they start inquiring - are you really tax non-resident or not.
There is no central CRS database where countries could data mine over all 109 countries that participate in CRS.

Country A i dont think they wll do anything they have bigger fish to harvest and for sure they will never think me as a tax resident there any more. OR they just forward it to Country B and they will ignore it why dont have the resources they have a very weak tax regime and just tok CRS in system so i dont fear them at any cost. . also i dont see them forward it to Country C as they have no knowlege where im located as i was never resident there legaly.

 

[uplana]

If you cut all your ties to your current country (A) you would have been home safe. But it looks like you did not and for that reason they will come after you with the tax bill.

 

[Benzouser]

If you cut all your ties to your current country (A) you would have been home safe. But it looks like you did not and for that reason they will come after you with the tax bill.

All ties are cut since 2004 . . . for them im a citizien in Country B ever since and taxable there. They even wont give me a new passport any more even still im a native citizen.

 

[zzzzzz]

All ties are cut since 2004 . . . for them im a citizien in Country B ever since and taxable there. They even wont give me a new passport any more even still im a native citizen.

You did not cut all ties. Close that EMI account, problem solved.

 

[Benzouser]

You did not cut all ties. Close that EMI account, problem solved.

I want to USE my EMI accounts. . .
I just dont want that CRS reports end up in country C.

 

[Mike Forman]

All ties are cut since 2004 . . . for them im a citizien in Country B ever since and taxable there. They even wont give me a new passport any more even still im a native citizen.

Cut ties with your citizenship country means also you are registered there with an address abroad of which you can proof (country B spendings, tax certificates, credit cards spendings,..) you lived there.

You can easily apply and get a new passport in the embassy / consulate of country B if you are there a resident.

Just "running" away from country A without the proper substance abroad they might still challenge it. You have an EMI registered on your name in country A, so this means you are still operating as a resident in country A and trust me, they will use that against you.

If they ever go after you and even can win is another story and just depends on being lucky or not.

Sometimes you have 20 years no problems but suddenly you receive a letter from tax auhtorities. I believe chances are small but you want to be prepared for that at any time and be able to proof you have bank acounts in country B from which you paid your bills, you were a tax resident there and can show your rental contract, gym subscriptions etc

 

[Benzouser]

Cut ties with your citizenship country means also you are registered there with an address abroad of which you can proof (country B spendings, tax certificates, credit cards spendings,..) you lived there.

You can easily apply and get a new passport in the embassy / consulate of country B if you are there a resident.

Just "running" away from country A without the proper substance abroad they might still challenge it. You have an EMI registered on your name in country A, so this means you are still operating as a resident in country A and trust me, they will use that against you.

If they ever go after you and even can win is another story and just depends on being lucky or not.

Sometimes you have 20 years no problems but suddenly you receive a letter from tax auhtorities. I believe chances are small but you want to be prepared for that at any time and be able to proof you have bank acounts in country B from which you paid your bills, you were a tax resident there and can show your rental contract, gym subscriptions etc

Well in country A i have no obligation to fill income tax. I have a pension fund paying me monthly that are indeed taxed, in country A, and yes i have a current Tax ID.. but still not need to declare anything on annual tax filling. I guess as im not insured in EU anymore. This was 2004. As im not reside there over 184d per year they want charge tax that is the law in country A.