SEY bank account closed. New bank needed to move funds or cash withdrawal!

[no1d]

Hi everyone,

I'm EU (RO) citizen and I have a Seychelles company which I used for affiliate marketing for about 5 years, last two years it had very little activity so I was keeping this company just to hold funds.

My good old HU bank gave me a notice that they have will have to close the bank account of the company.

They gave me 2 months time to find a solution to transfer the funds, its a high amount, mid 7 figures.

I want to avoid CRS and I see few possibilities:

- 1st, find 2-3 Swiss banks and open the account using my UAE residence, but atm I don't live there and don't have an address, looking to get an utility bill on my name. Would a ps-ed one from a friend do the job?
- 2nd, transfer all the money to my DIB bank accounts, I have business and personal, but I'm worried, I find UAE banks a bit unpredictable. Took over a month to activate my ex-Noor bank accounts with them.
- 3rd, withdraw all in cash, but I'm worried of traveling with so much cash crossing the border to my home country. I even think that bank might alert the border police to look for me because I carry a bag of cash.
- 4th, a mix of first options, 40% to Swiss banks + 40% to UAE banks and 20% withdraw in cash.

I think 4th is the best way to liquidate the account and company.

What do you guys think, what are the risk of withdrawing cash?

Sending funds to personal account is a good idea or is better to setup a new company in HK or SG with accounts in CH and UAE?

I don't do affiliate marketing anymore so there won't be any business activity on a new company, only vacations and other personal expenses, so I find it useless.

In the end I'm planning to invest all the money in real estate developments, a local business I started last year by injecting cash slowly.

Looking forward for suggestions.

Thanks!

 

[Martin Everson]

Well you know my answer and that is to regularize your tax affairs with Romania. You missed a tax amnesty sadly.

https://www.noerr.com/en/newsroom/news/romania-procedure-for-tax-amnesty
I mean a corporate tax rate in Romania of 16% and personal income tax of 10%, dividend tax 5% and capital gains of 10%. This makes Romania a tax haven for most people in western world.

Under Romania's CFC rules income of your Seychelles offshore company would be included in your tax base. At 10% that's not a great deal of tax to have paid. You may want to contact a tax advisor like woman in link above and see what is available to regularize your tax affairs.

Right now your Hungarian bank should have shared your account data with Romania under CRS being that you are beneficial owner, director or shareholder. If your info has been shared with Romania then moving money now will just add extra charges to your existing offenses. Tax office can take years to get to you after receiving data btw.

Switzerland is definitely not an option as they do not play around today when it comes to handling untaxed money. The banks there will ask for your tax return and will scoff at untaxed money coming from a Seychelles company let alone opening an account for one. Switzerland has ended its black money policy years ago and cares not for touching dirty money with its new white money policy.

no1d said:
In the end I'm planning to invest all the money in real estate developments, a local business I started last year by injecting cash slowly.
Click to expand...

If you plan to do this then legitimize the money by coming forward first to taxman before they come to you with data they obtained from Hungary. Assuming a good tax advisor is able to enter deductions and bring tax owed down to under 100,000 euros (possible as CFC income is considered personal income and hence taxed at 10%) you can avoid prison which is a certainty. You can then at least sleep at night and use money for your development.

https://emerging-europe.com/news/romania-legalises-tax-evasion-kind-of/

Romania's parliament votes to keep tax evaders out of prison, as long as they pay the tax owed. For a 20 per cent premium, their criminal records will be wiped clean.

Romania may have voted for a new parliament on December 6, but its old one, dominated by the Social Democratic party (PSD), is still creating problems.

On December 15, the country's chamber of deputies ”“ in its last sitting before giving way to the new parliament ”“ overwhelmingly voted in favour of introducing a law that would spare those found guilty of tax evasion from prison sentences as long as the tax was paid in full.

Clean slate​

The new rules would apply in all cases where the evaded tax did not exceed 100,000 euros. Fines would replace custodial terms, while a further clause stipulates that if a premium of 20 per cent is paid in addition to the evaded tax, no crime would be considered to have taken place.
Click to expand...

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Please note my posts should not be taken as financial or tax advice. Please seek professional advice in that respect.

 

[no1d]

Hey Martin, thanks for the explanation. I'm aware of CFC rules and PE issues that might get me in trouble.

In 2016 I've filled a form at the local tax authority that I'm moving to UAE to change the tax residency, they said all good, but Romania its a fucked up eastern european country and you never know.

Trouble is, after two months I got really bored there and returned, but I traveled more since then. Borders being open is hard to prove that I lived in Romania over 183 days, in case I wasn't watched closely.

Martin Everson said:
Switzerland is definitely not an option as they do not play around today when it comes to handling untaxed money. The banks there will ask for your tax return and will scoff at untaxed money coming from a Seychelles company let alone opening an account for one.
Click to expand...

I was planning to use my UAE residence in order to open personal accounts. Why they would decline the money from a SEY company if I own no taxes.

Martin Everson said:
If your info has been shared with Romania then moving money now will just add extra charges to your existing offenses.
Click to expand...

Then what I should do with the money, in 2 months the account will be terminated and most likely I need to open other account for SEY company which is almost impossible.
If Swiss banks won't work the other options is UAE bank, or cash.

Sending mid 7 figures to my personal account in Romania will get the tax man at my door next day.

Any chance that the bank would tell me if it was reported or not?

Martin Everson said:
If you plan to do this then legitimize the money by coming forward first to taxman before they come to you with data they obtained from Hungary. Assuming a good tax advisor is able to enter deductions and bring tax owed down to under 100,000 euros
Click to expand...

Where should I look for a tax advisor that can fix it for 100,000 euros. The big firms are difficult to deal with in this cases and local

I'll get in touch with that women.

 

[Martin Everson]

no1d said:
Any chance that the bank would tell me if it was reported or not?
Click to expand...

Banks use automated CRS modules to produce the reports. I doubt banker would know if you were reported or not.

OK I didn't realize you have UAE residency. Did you use the UAE residency to open the Budapest company account? Does the account have Romanian contact details like phone number or mailing address etc. If it has Romanian contact details it will be reported to Romania otherwise it won't. In which case any funds from company could be transferred to a personal account at a new bank with UAE personal account details.

no1d said:
Then what I should do with the money, in 2 months the account will be terminated and most likely I need to open other account for SEY company which is almost impossible.
Click to expand...

If you just want to kick the can down the road a little more and just need a bank account for a Seychelles company you can try banks in Puerto Rico.

no1d said:
I'll get in touch with that women.
Click to expand...

Do that as you may end up with a good compromise.

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Please note my posts should not be taken as financial or tax advice. Please seek professional advice in that respect.

 

[no1d]

Hungarian bank has my RO details, few years ago they said that I must be EU resident to hold the account.

Martin Everson said:
In which case any funds from company could be transferred to a personal account at a new bank with UAE personal account details.
Click to expand...

That's the plan, I think its better to split the funds between 2-3 UAE banks and hopefully one or two Swiss banks. I just need to get a rental contract and bills on my name to apply for Swiss banks.

No way to transfer the money in Puerto Rico, I rather hold it in cash.

 

[Martin Everson]

no1d said:
Hungarian bank has my RO details, few years ago they said that I must be EU resident to hold the account.
Click to expand...

Ok so its reported then for sure 🙁.


You may want to ask the Budapest bank what happens when account is closed and balance remains. Normally its just a flag that gets set that prevents new money coming on the account. You may still be able to wire your money out well after the account is closed. This would at least give you a little more time.

However best to just speak to tax advisor if you plan on staying in Romania. At some point when Romania decide to look at data they received they may see that your not declared resident and throw the data away or they may investigate to see if your still present and give you problems,

Toggle signature
Please note my posts should not be taken as financial or tax advice. Please seek professional advice in that respect.

 

[no1d]

Martin Everson said:
You may want to ask the Budapest bank what happens when account is closed and balance remains. Normally its just a flag that gets set that prevents new money coming on the account.
Click to expand...

After 2 months I won't be able to use the internet banking transfers and credit cards. They will move the funds to their own bank account and I have to give them an account to send the funds. But they said it should be of same company, might be complicated to send to a third party. And I want to close this company, after account is closed there's no use for it.

So I still have time afterwards, but have to do it in one transfer probably, not being able to split how I wish.

I spoke with few tax advisors in the last years, maybe I didn't found the right ones because I had the felling they don't know for sure what would happen if I come up to declare the money.

Always got a different answer and scenario.

Last edited: Jul 5, 2021

 

[jafo]

no1d said:
Hi everyone,

I'm EU (RO) citizen and I have a Seychelles company which I used for affiliate marketing for about 5 years, last two years it had very little activity so I was keeping this company just to hold funds.

My good old HU bank gave me a notice that they have will have to close the bank account of the company.

They gave me 2 months time to find a solution to transfer the funds, its a high amount, mid 7 figures.

I want to avoid CRS and I see few possibilities:

- 1st, find 2-3 Swiss banks and open the account using my UAE residence, but atm I don't live there and don't have an address, looking to get an utility bill on my name. Would a ps-ed one from a friend do the job?
- 2nd, transfer all the money to my DIB bank accounts, I have business and personal, but I'm worried, I find UAE banks a bit unpredictable. Took over a month to activate my ex-Noor bank accounts with them.
- 3rd, withdraw all in cash, but I'm worried of traveling with so much cash crossing the border to my home country. I even think that bank might alert the border police to look for me because I carry a bag of cash.
- 4th, a mix of first options, 40% to Swiss banks + 40% to UAE banks and 20% withdraw in cash.

I think 4th is the best way to liquidate the account and company.

What do you guys think, what are the risk of withdrawing cash?

Sending funds to personal account is a good idea or is better to setup a new company in HK or SG with accounts in CH and UAE?

I don't do affiliate marketing anymore so there won't be any business activity on a new company, only vacations and other personal expenses, so I find it useless.

In the end I'm planning to invest all the money in real estate developments, a local business I started last year by injecting cash slowly.

Looking forward for suggestions.

Thanks!
Click to expand...

Were you able to solve this?