Automatic Exchange of Information (AEOI) - Switzerland & EU

[Roy]

In previous year I have temporarly worked in Switzerland with a goal to fill my empty student pockets by doing some construction work. I've finished with my job before the new year and then I have left the country. But before leaving Switzerland I didn't close my local bank account - therefore it remained open after 01.01.2017. Needless to say that I'm also domiciled -and tax compliant- in one of the EU countries with highest tax rates. Everything fine if I didn't provide a bank with my domicile address before leaving, and I did it so by replacing local address with foreign (domicile) in bank's e-platform. As a not aware student I didn't expect what consequences this will bring and I fully regret that I didn't inform myself about recently implemented AEOI system. Soon after the change of address, bank sent me these docs: Dropbox - taxstuff

to fill, sign and send back. I didn't send anything, yet.

At this point I feel that everything is pretty much lost, because I've responded on the received document by asking on costumer support what is this stuff about, and I belive this should be intepreted by them as confirmation of my address. And they even got a phone number from my domicile country. I belive that these are all the red flags which are monitored by banks, at least based on the CSR document.

So at this point I'm thinking what to do with those papers? Ignore everything and get the account frozen, but definately get it reported to my domicile country in 2018, or fill it will some BS information hoping that they won't verify it and this way my soon-to-be reported account maybe wouldn't reach my domicile tax body?I've read that there is also a possibility to get account in "undocumented" state and therefore not reaching domicile, but they likely have way too much clues to declare my account in this way.

 

[negon]

Welcome aboard 🙂

Thank you for sharing your story and valuable information.

Roy said:
or fill it will some BS information hoping that they won't verify
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This is not going to work.

You are pretty much mercy to the bank and to give them the information they request or let them freeze the account and hope the amount that have been on the account is too small for your tax authorities to investigate further.

 

[utibi]

This is scaring me to hell! What can we do if we get a letter like this from our bank? I want don't want to be in same situation as you 🙁

 

[Roy]

Don't know what to do in case you get a letter, as in such event it's most likely that is already too late, but this is at least what you shouldn't do in order to stay under the radar:
-The most important one: Do not provide a bank any of your non-local addresses, regardless means ( ie paper,phone, electronic or any other form). This goes for your domicile addres, temporary adress, PO box or just about anything else, that is not local. The only address you should provide is your local address.
-Do not transfer bucks from a local account to your account in your domicile country. Do not do this.
-Do not call a bank via phone numbers, which aren't local ones. Buy a local phone number (SIM) and try to use it for bank calls only, or call from local phone boxes. In short, use local phones.
- When talking with bank's personell, don't tell them anything except local information. In particular guys from customer support like to ask stuff which you don't want them to know.
-Do not provide a bank e-mails, which are not local. Altough generic domains like .com shouldn't be an issue, the domains which are tied to specific country, e.g. '.de', '.at', '.it' are red flags, in case they differ from local domain. If you have to provide email, provide it with local domain -e.g. if your bank account is opened in Germany, stick with [email protected].

In my opinion these are the most important ones. One can find more CRS document, as there is the whole procedure explained, altough it's a lot of law terminology, so prepare for googling.

And one more thing - I'm not favouring tax evasion, but if you're working your student a** off for savings, which your domicile country wants to wipe them all without even considering reasonable deductions, then you'll have to stay under the radar. If your domicile country has similar tax rate as the country, where you work, then the size of tax obligation isn't really problem, but if your domicile country has way significant tax rate as country where you work, and if your domicile country doesn't include your expenses in deductions, then you're in troubles.

 

[pesto]

I feel sorry for you man 🙁 Thank you very much for your advice. I'm impressed that you have the nerves and willingness to share your experience here.

 

[utibi]

Roy said:
And one more thing - I'm not favouring tax evasion, but if you're working your student a** off for savings, which your domicile country wants to wipe them all without even considering reasonable deductions, then you'll have to stay under the radar. If your domicile country has similar tax rate as the country, where you work, then the size of tax obligation isn't really problem, but if your domicile country has way significant tax rate as country where you work, and if your domicile country doesn't include your expenses in deductions, then you're in troubles.
Click to expand...

You considered to setup total anonymous company and put your money into bitcoins wallet ?

 

[Roy]

utibi said:
You considered to setup total anonymous company and put your money into bitcoins wallet ?
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too late I'd guess. My account is going to be reported, regardless actions.

 

[redeye]

I agree with OP it may be to late for him to go that route. But for future business it can be the solution or for other where it isn't to late yet it would be something to consider.

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