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Questions about EMI/CRS and offshore company

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Richie

Richie

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Aug 24, 2017
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Hello

I have some doubts in relation EMI and new CRS implementation system using offshore company. As far as I know all EMI will report information about business company representative (registered as business contact in EMI platform) to his country.

At this point, what is the advantage of having an offshore company if they can relate to you with the company?

That you are the representative does not imply that you are the owner?

In the case of using darcs, it may be a problem in the future?
 
Not all seem to report you. As far as it looks then Worldcore for instant‌ does not. Most EMI's that are not owned by a bank but only registered as‍ financial service provider will not report you as far as it is right now. It⁠ can change any time soon and this would also just be a "guess" somehow since⁤ according to Money Laundering regulations which apply worldwide you have to collect and report financial⁣ transactions somehow.
 
https://www.oecd.org/tax/exchange-of-tax-information/CRS-related-FAQs.pdf
Page 17

7. Excluded Accounts - low-value electronic money accounts
Under what conditions can‌ electronic money accounts that are Depository Accounts be Excluded Accounts pursuant to Section VIII(C)(17)(g)?

The mere fact that a Financial Account is an electronic money account does not by itself‍ enable that Financial Account to be specified by a jurisdiction in its domestic law as⁠ a low-risk Excluded Account. In order for such Financial Accounts to be specified as Excluded⁤ Accounts under the domestic law of an implementing jurisdiction pursuant to Section VIII(C)(17)(g), the jurisdiction⁣ needs to ensure that the accounts present a low risk for being used for tax⁢ evasion, have substantially similar characteristics to another category of Excluded Accounts and that their status︀ as an Excluded Account does not frustrate the purposes of the CRS.

The Commentary on︁ Section VIII(C)(17)(g) provides examples of such low-risk jurisdiction-specific Excluded Accounts. As an example of a︂ low-risk Excluded Account in the context of financial inclusion, Example 5 states that a Depository︃ Account subject to financial regulation

(i) that provides defined and limited services, so as to︄ increase financial inclusion,
(ii) on which monthly deposits cannot exceed USD 1 250 and
(iii) for which Financial Institutions have been allowed to apply simplified AML/KYC procedures consistent with the︅ FATF Recommendations may be a low-risk Excluded Account.

Provided that electronic money accounts are regulated︆ and meet the requirements of Section VIII(C)(17)(g), they may be defined as an Excluded Account︇ by the implementing jurisdiction. The above-mentioned example can provide further illustrative guidance as to when︈ the requirements of Section VIII(C)(17)(g) would be met in the context of financial inclusion.
 
In other words. What is the best configuration to open EMI business account with offshore‌ company, with no second citizenship, and stay under CRS?
 
Thanks for the link. I had always thought EMIs were under the CRS regulations when‌ they had a banking license (most do, like Paysera or Mistertango), but I see it's‍ more complicated...

I guess the only way out is do everything, I mean to live⁠ and to work, outside of any AEOI country. That's what I'm trying to do.
 
All EMIs report transactions over 10k for AML purposes.
Once you go over 20k in‌ received money, they report for tax purposes.
 
This is REALLY‍ good to know. I was just wondering if you had a source for this info⁠ though? I'd like to read more.
 
Paypal is the same kinda. They don't even send out a notice at the end‌ of the year unless you do over $20k
 
The Common Reporting Standard (CRS) is a new, single global standard on Automatic Exchange of‌ Information (AEOI). On 29 October 2014, 51 jurisdictions (countries and territories) signed a multilateral agreement‍ to automatically exchange information on financial accounts for tax purposes. During the following year, 23⁠ jurisdictions have joined the convention. This is the first ever agreement to exchange this type⁤ of information automatically. By the end of 2018, when more jurisdictions join the convention, 96⁣ jurisdictions will exchange the information on financial accounts.

This new regime involves the systematic and⁢ periodic transmission of taxpayer information by the source country to the residence country concerning various︀ categories of income – it goes much further than just interest income. This means that︁ tax authorities will automatically receive information on all the financial assets their taxpayers own overseas︂ without having to ask for it.

Although almost all European countries and offshore financial centers︃ will participate in the information exchange, there are still several European countries and offshore financial︄ centers which will not exchange the information automatically. One of them is North Cyprus. Northern︅ Cyprus does not participate and doen not plan to sign Tax Information Exchange Agreements (TIEA),︆ The Convention on Mutual Administrative Assistance in Tax Matters, FATCA (Foreign Account Tax Compliance Act),︇ and other tax and account information exchange treaties.
 
does gold investment comes under the CRS? or only bank account , securities and other‌ investments?
 
Some EMI (Okpay, Leupay) are asking for TIN's. It's clear that they are going to‌ report.

A lot of are not asking for TIN. Some of TIN's were asked if‍ they are going to report and they denied that at least now (i.e. epayservises, paxum).⁠

Could they report without TIN?
 
But your passport doesnt reveal your tax residency and they report where you are rax‌ resident.
 
When opening a bank account they ask you for your passport and a utility bill.‌
Most likely to provide a utility bill you need to be resident and anyway they‍ ask you what's your tax residency... lying is illegal and up to you !
 
EMI's are not offshore banks, mostly all in Europe.. What surprising to see them reporting‌ their clients?
 
"Paper" gold investment made through bank do get reported.‍ Physical bullion gold of course does not.
 
What if I buy real gold bars



Will I get reported if I store them at home?
 
Are you serious? Of course‍ not. I mean, how would that even be possible in a practical sense.
 
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