Paypal and exchange of information

[LisaSimpson]

I have found a page from Paypal describing exchange of information from Paypal with governments.

Be free to tell me what you think about it...

PayPal

 

[LisaSimpson]

It looks like the Automatic exchange reporting is similar for banks and Paypal. It means‌ that in order to be safe, people should open a business Paypal account rather than‍ a personal or premier (boosted personal) account.

 

[JohnLocke]

Thanks for this great share. It has been known since a long time they exchange‌ data, but what let you think this is different for companies and business PayPal accounts?‍

 

[LisaSimpson]

I have asked Paypal. They told me the CRS reporting⁠ procedure was different for People and Companies.
Business account: Reported to where the company resides⁤
Personal account: Reported where the paypal account owner resides.

 

[LisaSimpson]

I have asked paypal: Business account reported to where business resides. Personal account reported to‌ where the individual resides.

 

[suzy]

Thanks for clarification. So if you‍ have the Company in the same country as you residency you get reported anyway!?

 

[negon]

It seems that's how it works..

 

[cutmetwo]

so what you guys say here is that paypal will echange all my information right?‌

 

[LisaSimpson]

If you have a personal account yes. The government where‍ you are a fiscal resident will receive information about your paypal account.

 

[LisaSimpson]

I am sorry I have the ideas in my mind but now on the paper.‌ Paypal considered itself like a bank. It means they will provide all the information that‍ banks usually give to government in the context of the automated data exchange of financial⁠ information from the OECD. In other words, in few years, if you have a personal⁤ PayPal account, wherever you are on earth, your government will know the money you earn⁣ from PayPal. In other words, entrepreneurs will not be able to start with a personal⁢ paypal account. They will have to start with a business paypal account not to have︀ problems.

 

[diablo]

they are a registered‌ bank in Luxembourg for that reason they are reporting your account to the local tax‍ authorities, rest assured about that!

 

[anotherone]

Then, according to CRS, The luxembourg authorities transfer the data to countries from the OECD.