Wise and CRS, how will it work and how much clarity will there be on it?

[karishi]

So Wise is starting the process of becoming CRS compliant. Let's read the wording currently used:

What information do you report to tax authorities?​

The answer to this changes based on which country you’re in. CertainWise 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 set threshold, and report it to regulatory bodies. Our T&Cs of each entity provide more information about the information we may need to report to different tax authorities.

So from what we can read here what forces wise to report at the moment is the Assets products. You can see this in the Terms and Conditions of the asset program ( The clever new way to send money abroad ) point 26
Then there is the Australian users which get reported, although I read all the terms and conditions and didn't find anything.
Then there is a reference on them working with OECD. I read through the USA and EU and UK terms and conditions but couldn't find anything about CRS. They only state "We try to be as transparent as possible about any tax we are required to withhold and any information of yours we are required to report, however we are not authorised to provide you with any tax advice." so I guess they should add this info somewhere when they start reporting. the statement they use also is: "As and when Wise is obligated to collect and report customer tax and financial information to tax authorities we will do so. "
I couldn't even find any reference to transactions above a certain threshold in the terms and conditions.
So what to make if it?Given the clarity with which they mention what is subject to CRS, I would expect them not to be reporting yet except for what they are reporting, and when they start I expect them to be stating it clearly.
Has anyone written to them asking for clarifications or has any insider info?

 

[OffshoreMonero]

At Wise it will work like this:

1. You bend over.

2. They take their fist and dust it heavily with sand.

3. They insert their fist.

Any questions?

 

[wellington]

So Wise is starting the process of becoming CRS compliant. Let's read the wording currently used:


So from what we can read here what forces wise to report at the moment is the Assets products. You can see this in the Terms and Conditions of the asset program ( The clever new way to send money abroad ) point 26
Then there is the Australian users which get reported, although I read all the terms and conditions and didn't find anything.
Then there is a reference on them working with OECD. I read through the USA and EU and UK terms and conditions but couldn't find anything about CRS. They only state "We try to be as transparent as possible about any tax we are required to withhold and any information of yours we are required to report, however we are not authorised to provide you with any tax advice." so I guess they should add this info somewhere when they start reporting. the statement they use also is: "As and when Wise is obligated to collect and report customer tax and financial information to tax authorities we will do so. "
I couldn't even find any reference to transactions above a certain threshold in the terms and conditions.
So what to make if it?Given the clarity with which they mention what is subject to CRS, I would expect them not to be reporting yet except for what they are reporting, and when they start I expect them to be stating it clearly.
Has anyone written to them asking for clarifications or has any insider info?

I only use wise to pay the costs of ongoing data/server hosts (personally) for a company that went insolvent - just because the tech has value still.

I'm sure their 700 pounds going through it a month isn't gonna be worthwhile to HMRC (even though I don't reside in the UK).

They are looking for big players using EMI's to launder funds. -> easier to move to a third world nation and live there for a few years then move to a 1st world nation with the funds i'd imagine.

 

[Var12]

From what they write it is clear that now they do not report automatically. But maybe they will soon

 

[karishi]

From what they write it is clear that now they do not report automatically. But maybe they will soon

Yeah, that's what I read too from what they write, they report when they are forced to: assets deals with stocks and they are forced to report, and the same goes for the Australian subsidiary.
The generic "working directly" will be that they will report suspect money laundering / tax evasion schemes better ( they were recently fined by Abu Dhabi for not doing this well ) both nothing points at the moment to CRS for personal/business accounts, although that may change in the future, i guess that single states could force them to use a subsidiary that is forced to report to provide services in the country like Australia does.