CRS and corporate bank account?

[saasman]

How does CRS work if you just own a foreign company with a foreign business bank account?

Does CRS also cover business bank accounts?

and if so what $ amount do they report since it's a separate entity? do they just report that i personally own the balance on my business bank account because i'm a UBO? (sounds rediculous)

 

[Sols]

Yes, CRS also covers business accounts. The amount on the bank account is what's reported.‌ It is reported to the country where you are resident, stating that Mr. Saasman is‍ the UBO company Saasman Inc that has a company account with Xyz Bank.

 

[fshore]

It depends if its an active company or passive company (receiving dividends etc). If active‌ then the company is reporter to where the bank deems it is tax resident. Your‍ name is not reported.
If its an passive company then then owners are reported.

 

[EliasIT]

Which one is true @fshore or @Sols ?

 

[jbas293rr]

Is it true that CRS involves reporting the total *current* value of an account?

Eg. if I have a debit card and keep the account at balance of <10 euro,‌ and only top it up to make a purchase, then it's pretty safe?

 

[saasman]

Isn't passive/active determined by the owner's country and not the reporting⁤ country?

 

[fshore]

When I've gone through reviews the bank compliance forms asks us if we‌ are a passive or active company. I think the bank also has a duty to‍ make sure this is correct, and won't rely only on what we say if they⁠ have reasons to believe otherwise.

 

[JohnLocke]

I have heard that before with‍ the banks in Cyprus, I never figured out if this is real and if they⁠ indeed not report UBO if the company is active or if it is just something⁤ the CSP's say.

 

[Sols]

I could‌ be wrong as I tend to assume anything a bank knows, the competent authority will‍ or can know.

If there's doubt, banks tend to err on the side of caution⁠ and over report anyway. Failing to report carries risk. Over reporting is risk free.