Dodging AEOI

[enceladus]

As far as I know, the AEOI rules mandate that the financial institution sends customer data to the tax authorities of the country it's incorporated using the CRS standard. The local tax authorities will then route this data to those of the client's jurisdiction.

So what if a person living in a high tax jurisdiction moves to a no tax country temporarily (or even a country which doesn't participate in AEOI), sets up permanent residence, then opens a bank account in Europe with an address in the no tax country, then moves back to his home country but doesn't inform the bank of the address change?

How would the bank know, or correctly report the client?

 

[JohnLocke]

enceladus said:
So what if a person living in a high tax jurisdiction moves to a no tax country temporarily (or even a country which doesn't participate in AEOI), sets up permanent residence, then opens a bank account in Europe with an address in the no tax country, then moves back to his home country but doesn't inform the bank of the address change?
Click to expand...

Tha could work for a limited time, say a year or two. I believe that the tax auth. of the country where you don't live any longer will inform your current tax office of the request.

However, the idea is good, and I could imagine that if you don't inform the first tax jurisdiction about your move and even where you move to, then they will have troubles to find you and even report you. I know that this could work in some EU countries where it isn't mandatory to tell the country you leave where you move to.

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[The24]

Since the problem is everyone,
we should share information as possible together to find a common solution .
let's start from this https://www.<<snippet>>.org/2017/03/aeoi-mitigation-avoid-aeoi-crs-fatca/

 

[enceladus]

The link is broken

 

[The24]

I do not understand the reason, however, where it is written << snippet >> you have to write s t r e b e r without space

 

[JohnLocke]

No linking to competing websites! This is a standard rule forum wide. Anyway, you I will allowed here in the Mentor Group but can't remove the censoring.

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[The24]

Admin said:
No linking to competing websites! This is a standard rule forum wide. Anyway, you I will allowed here in the Mentor Group but can't remove the censoring.
Click to expand...

I apologize

 

[JohnLocke]

No problem at all.

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[hiju]

enceladus said:
As far as I know, the AEOI rules mandate that the financial institution sends customer data to the tax authorities of the country it's incorporated using the CRS standard. The local tax authorities will then route this data to those of the client's jurisdiction.

So what if a person living in a high tax jurisdiction moves to a no tax country temporarily (or even a country which doesn't participate in AEOI), sets up permanent residence, then opens a bank account in Europe with an address in the no tax country, then moves back to his home country but doesn't inform the bank of the address change?

How would the bank know, or correctly report the client?
Click to expand...

this could work.. I know at least one bank that never asked me for address update or anything for the last 5 years 😀