Offshore company account with EMI?

[Jonathan]

Hi, I have recently opened an offshore company registered in Gibraltar and need a business bank account. Would an EMI like Wise (Transferwise) be a sensible place to open the account? Or would a bank account in a non-CRS reporting country be better? Surely if EMIs are non-CRS reporting, wouldn't that be a better bet than non-CRS bank accounts...? Thanks for your help.

 

[Gediminas]

Hey,

Do you have intentions to hide from the tax authorities (not recommended)? If you do, then keep in mind Wise also reports.

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[Jonathan]

Hi, I was under the impression that Wise were not reporting information to HMRC or any other tax authority?

 

[Sols]

EMIs are subject to CRS but it hasn't yet been a high priority to ensure they are compliant.

It's unclear if Wise reports. On their website, it says they don't in the UK but that might not be true and they are likely reporting for non-UK customers.

I would operate under the assumption that all EMIs do report.

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This is the probably the answer to your question.

 

[qqq]

Do they report to country of residence or country of citizenship or both?

 

[Fred]

qqq said:
Do they report to country of residence or country of citizenship or both?
Click to expand...

If they report you - they report you on all levels - this can go as far as to the Country you are making most logins based on your IP address.

@Sols advise is the best advise - never ever make you Dependant of an EMI in terms of tax affairs.

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[Sols]

Reporting is primarily based on tax residence, which for most people is simply where they live. For some citizenships (notably US), tax residence is also based on citizenship.

If there is doubt or uncertainty, there is nothing stopping the systems in place with the institutions and relevant competent authorities from reporting to multiple countries.

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This is the probably the answer to your question.

 

[qqq]

@Sols, do you agree with fred here?
Do they report also to the citizen country even if you are not resident there and you don't log in from there?

 

[qqq]

Sols said:
Reporting is primarily based on tax residence, which for most people is simply where they live. For some citizenships (notably US), tax residence is also based on citizenship.

If there is doubt or uncertainty, there is nothing stopping the systems in place with the institutions and relevant competent authorities from reporting to multiple countries.
Click to expand...

From your answer it seems very unlikly

 

[bizman]

Sols said:
If there is doubt or uncertainty, there is nothing stopping the systems in place with the institutions and relevant competent authorities from reporting to multiple countries.
Click to expand...

you can't avoid reporting if you live either in the EU or the US

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