CRS any minimum limit before reporting?

[bubbledouble]

Is there is a minimum limit for when they must report an account to the tax authorities ?

Can't see any info about it before and was searching various places without luck!

 

[backpacker]

bubbledouble said:
Is there is a minimum limit for when they must report an account to the tax authorities ?

Can't see any info about it before and was searching various places without luck!
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Accounts with zero or negative balance will be reported, too.

 

[bubbledouble]

What do you think... if the balance at ALL times has been below 8000 euro would any tax office care ? say the account is 5 years old and had no activity the last 2 years?

 

[backpacker]

bubbledouble said:
What do you think... if the balance at ALL times has been below 8000 euro would any tax office care ? say the account is 5 years old and had no activity the last 2 years?
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If it is not a business account + if you are not a tax resident of a country which has wealth taxation + if you are not a tax resident of a country where you are obliged by law to reveal all foreign accounts + if it is not an interest bearing account -> If these conditions are met cumulative, most likely nobody cares!

Last edited: Nov 19, 2021

 

[JackAlabama]

bubbledouble said:
What do you think... if the balance at ALL times has been below 8000 euro would any tax office care ? say the account is 5 years old and had no activity the last 2 years?
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unlikely since it is just a very small amount (I am well aware that this amount can also be big depending on circumstances) for tax office to care about as there are much bigger fishes to fry. Add another 0 and they might start to bother depending on the country in question.
But hope and wishes are very high risk strategies.

 

[RexS9999]

There are two questions that could be asked. The minimum that will be reported and the minimum that triggers action. I met a Japanese who told me Japan will not take action unless the amount is over $1 million USD. Don't know if this is factual. Every country would have different policy in this regard. I have been unable to get any info from my home country on this.

 

[JackAlabama]

RexS9999 said:
There are two questions that could be asked. The minimum that will be reported and the minimum that triggers action. I met a Japanese who told me Japan will not take action unless the amount is over $1 million USD. Don't know if this is factual. Every country would have different policy in this regard. I have been unable to get any info from my home country on this.
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Unlikely as time goes on. I would not build any strategy on hearsay and especially of a country which is known to have an aggressive tax agency (they seem to take Germany as role model there regarding to tax). They do work seriously and precise.
Also 1m is a big amount in current day Japan whereas the average chap makes a lowish 5digit salary (in usd equivalent) per year.

What makes more sense is that they started at 1m and work their way downwards as the year go by.

 

[RexS9999]

CRS has been going on for a while. However I have not read even one enforcement action being taken as a result of this exchange of info. The Panama Papers got a lot of attention. Many Canadians were named but little action was taken against any of them. Has anyone read of enforcement action resulting from CRS? Please provide a link.

 

[Sols]

RexS9999 said:
CRS has been going on for a while. However I have not read even one enforcement action being taken as a result of this exchange of info. The Panama Papers got a lot of attention. Many Canadians were named but little action was taken against any of them. Has anyone read of enforcement action resulting from CRS? Please provide a link.
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Not sure the comparison holds up.

Panama Papers and other leaks came as a surprise. Those with something to hide (and means to do so) didn't have time to act. It was fantastic and sensational, which is why it's still talked about. With CRS, there was ample warning.

CRS is not public information and only relates to bank accounts, whereas offshore leaks have been published publicly and have involved details about companies as well.

Most people "caught" by CRS will be small fish, so it'd be like writing news articles about speeding tickets. And in some cases, the matter is simply handled without it every catching the public's eye because it's just background noise. Very few people are newsworthy.

For now, though, it's no great secret that many authorities are simply not capable of sifting through all the data. It will take another few years for automation and improved workflows to clear out the backlog. So someone could be busted for tax evasion but not know it yet.

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This is the probably the answer to your question.