Revolut CRS 2024: Aggressiveness & Info Shared?
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This could be useless for you because you first need to understand how the entity is classified for CRS purposes.
The CRS categorizes entities into different types based on their activities and functions. Based on the classification the entity/person might be excluded from reporting.
Under CRS, the details to report includes customer's tax residency details and financial account information (i.e. balance/value and the total amounts of payment credited to their respective financial accounts).
Attachments
Note that this is about to change.
With the amendments to the CRS, entities that hold specific Electronic Money Products or Central Bank Digital Currencies for the benefit of customers become Financial Institutions under CRS.
https://www.grantthornton.ie/insigh...-amendments-to-the-common-reporting-standard/
True, this is relevant:
Consequently, any entity that holds e-money or CBDC for the benefit of customer will now fall under the term “Depository Institution”, a category of Reporting Financial Institutions under CRS.
What does this means?
"To note that these new accounts would be reportable under CRS, with the exception of e-money accounts whose 90-day rolling average does not exceed USD 10,000 at any day during the year."
less than 10k per year are not reported?
Inclusion of new financial products
Depository Accounts, as a category of financial accounts, are no longer restricted to the ”˜traditional' definition linked to banking or to interest-bearing accounts held with insurance companies. Added to this list is any account representing electronic money (e-money) or Central Bank Digital Currencies (CBDC.)Consequently, any entity that holds e-money or CBDC for the benefit of customer will now fall under the term “Depository Institution”, a category of Reporting Financial Institutions under CRS.
What does this means?
"To note that these new accounts would be reportable under CRS, with the exception of e-money accounts whose 90-day rolling average does not exceed USD 10,000 at any day during the year."
less than 10k per year are not reported?
If you are an EU/EES citizen, then you just get a utility bill in your name in one of the countries Revolut supports. Not too difficult.
If you are a non-EU/EES citizen, Im less sure, maybe a residency permit is required.
They all report.
But say you opened an EMI account with a utility bill from EU country A, but you live in Panama/UAE or somewhere outside the EU. Then the EMI will report to country A, and then I don't know what will happen, but country A can't tax you since you are not a tax resident there.
Worst case they'll tell the EMI their record is wrong and the EMI will ask you to update or close the account. In practice nothing seems to happen though.
Well, in this scenerio, or in any scenario really, if your country of citizenship is a high tax western country, it is best to have cut the ties and left a long time ago. So the country of citizenship will just see that this guy doesnt live here and isnt a tax resident here, not our problem.
But it is an interesting question if banks report to the country / countries of citizenship.
Its rather simple - standard information that is reported under CRS if your entity is reportable.
I am seriously considering closing my Revolut account. I only use it for free credit card deposits and transfers for gambling, which is also possible with other providers such as ZEN.
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