Is it really useful to empty accounts at the end of the year?
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Have you checked this one:
https://www.oecd.org/content/dam/oe...ation-in-tax-matters_ab3a23bc/896d79d1-en.pdf
Page 97 lists what is being reported, transactions are not listed there. But please note that in case of fraud/suspicion your government can request further details from the banks.
Hence I would say that for CRS, it would work. For FBAR (US) it does not help as you need to report the highest balance throughout the year.
https://www.oecd.org/content/dam/oe...ation-in-tax-matters_ab3a23bc/896d79d1-en.pdf
Page 97 lists what is being reported, transactions are not listed there. But please note that in case of fraud/suspicion your government can request further details from the banks.
Hence I would say that for CRS, it would work. For FBAR (US) it does not help as you need to report the highest balance throughout the year.
For bank accounts CRS only automatically reports interest earned and the balance on December 31. Incoming and outgoing amounts from your other accounts or from other people are not automatically reported.
That being said, the existence of the foreign bank account would now be known by the resident country's tax authorities.
I have never heard of it actually being done, but the tax authorities can look into the zero balance and are able to ask the foreign bank for statements.
Whether one wants to take that risk and empty the accounts before year end, it's up to them. If you're a tax resident of a country in North America or the EU, I personally wouldn't.
Any source for this? According to OECD official stand, these transactions should not be reported
No, you will be reported anyway. All my accounts were reported to the German authorities last year. I don't live in Germany anymore, so I don't care!
From what I learned from N26, they are only interested in accounts with more than 5000 euros. So I guess you can open lots of EMIs, neobank accounts and keep 4999 euros in each one? 😉
no country reports its tax residents. CRS only is used if you hold an account in a country where you are not tax resident.
Where did you hear this? I don't think UAE would play those kind of games and risk their reputation on an international level
You sign the self certification form declaring you are a tax resident of what all countries. If you declare just UAE - the residence permit is a proof of that it very much might be possible you are doing correct declaration on certification form and bank takes you at your word. Unless, you have a high value account and there are indica that you might be resident in more than one country. SO yeah technically it is your responsibility to declare your tax residency.
Here is the complete guide by UAE Authorities on the subject:
https://mof.gov.ae/wp-content/uploa...tes-for-the-Common-Reporting-Standard-CRS.pdf
Here is the complete guide by UAE Authorities on the subject:
https://mof.gov.ae/wp-content/uploa...tes-for-the-Common-Reporting-Standard-CRS.pdf
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