EU government and UAE

[offz]

Hello, I'm a UAE resident and for this reason I am not reported through the CRS to the European government of which I am a citizen.

If I owe money to the "taxman" in my home country in the next few years and have all my assets and money in the emirates, could they still come and get it? although the emirates do not report my account

 

[Gediminas]

Hey,

Who told you this nonsense? You can be reported‍ to your national citizenship country. If they see a doubt, they will do it.

In reality, yes, they⁠ could. It's a matter of how much they want this.

I would suggest do not⁤ play games with the tax office.

 

[Konstanz]

They will probably get information through CRS that you have assets hiding in Emirates. They‌ can start criminal prosecution for tax avoidance
Banks would usually report to citizenship country and‍ residence country

 

[offz]

They do not report

https://www.oecd.org/tax/automatic-...sistance/residence-citizenship-by-investment/

 

[offz]

the problem is not whether they report or not, but whether they can proceed with‌ the possible expropriation of the assets, and fot what you say the answer seem to‍ be yes

 

[Konstanz]

Well they can start criminal prosecution in your⁠ home country and put international warrant on you.
The link you pasted does not relate⁤ to CRS. Under CRS regulations banks can still report you to your passport country even⁣ if you are genuine UAE resident.

 

[offz]

How can I protect then? If you can link to some thread to read more‌ about it I'll be glad.

I have a LLC in UAE and recidency as well.‍

 

[Konstanz]

How much you owe to them? Thousands, hundred thousands?

 

[offz]

now thousands

 

[offz]

The problem is that my LLC is always under the risk of being sued by‌ EU government becouse of sales activity over there

 

[Konstanz]

I doubt they would do something about such‌ small amounts

 

[zzzzzz]

Just hiding with⁣ UAE resident permit & residency certificate is half-working solution. For 100% solution you have to⁢ become tax non-resident at home (severing economic and social ties).

 

[offz]

I've already done this step, what i owe right now is for⁠ past years. What warn me for the future is not my residence, but the permanent⁤ establishment of my company because I need to have some sales rapresentative in EU, rules⁣ about it is not clear if it could create a permanent establishment in those country.⁢

Could a trust help in that case? What can you suggest to me? @Gediminas

Thanks in advance

 

[Fred]

The CRS will be your smallest problem.

I already mentioned many times that for now‌ we are not aware of any single "reporting for fun" case with UAE banks that‍ open you with Emirates ID and local phone no. a company bank account.

Before we⁠ start drawing the wildest setups and structures and escalate it into the wildest theory cases⁤ - keep it simple.

The GoV will keep it simple as well - they have⁣ time.

Worry about flying and worry about renewing your passport.

If the GoV really thinks⁢ you owe them big amount of money they catch you at the Airport - not︀ only in your home country but EU wide. They catch you at the airport and︁ look at your wallet and take a close look on your bank cards and passport︂ - that's "CRS - reporting" for the big boys they really want to go after.︃ They will contact all the banks you have cards of in your wallet - every︄ single bank will give them all information they want.

Should they think it's too less︅ to go after you in person - they will simply reject to renew your passport︆ till the money is paid you owe them. It you have only one passport -︇ Game Over.

 

[Gediminas]

As a general‌ rule, a sales representative might create PE if it has the right to sign contracts‍ on behalf of the company.

Therefore big international groups usually use local offices (in the⁠ countries they don’t want to attribute income from sales) as “marketing and informational” offices.

Overall, I agree that the Permanent Establishment (PE) issue is important. But PE is also something⁤ you can “control” by monitoring legal requirements and practice. From a legal perspective, PE definition⁣ is determined in treaties for the avoidance of double taxation (DTT) and local laws of⁢ a particular country. If DTT between particular countries exists, you should first examine the provisions︀ of DTT. If DTT does not exist, only local rules matter.

UAE currently has more︁ than 115 DTTs, so first you should check if that is applied to the country︂ in which sales representative is involved in business activities.

 

[offz]

Our sales rapresentative doesn't have this right, I've already read the DTT, but︃ further update have been made after the DTT for online company like my case and︄ in a KPMG report (done after DTT) they specify that also pricing power could be︅ considerd PE.

We are those situations where the border is not clear

The KPMG report︆ closes by saying that if the DTT is more favorable to the taxpayer it should︇ prevail.

 

[volcanotnt]

@Gediminas on your banner click doesn't work.

 

[Gediminas]

Thanks 😉

 

[volcanotnt]

hope that will save some new clients 🙂
p.s
I did write an email.