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 now︀ from 2024 start to send CRS reporting to country A. i guess they should forward︁ it to country B. So when country B if they look up the emi details︂ from the CRS and see that im now having any TAX id registred or not︃ even inside the country.... as im intend to moving to country C later in 2023︄ 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 database︆ that all tax jutistician can just enter and search freely? feel free to input my︇ 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]

yes broke all ties back in︀ 2004

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

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]

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

 

[Benzouser]

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

 

[Mike Forman]

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 without︀ the proper substance abroad they might still challenge it. You have an EMI registered on︁ your name in country A, so this means you are still operating as a resident︂ in country A and trust me, they will use that against you.

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

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

 

[Benzouser]

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