How Does Your Country Know About Your Offshore Bank Accounts?

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This is the question that pops up quite often: How does my home country know about my foreign bank accounts?
If you open an offshore bank account will your home country find out, and how?
The answer is YES they do know, and will find out. Bank secrecy is the thing of the past, and as we live in digitalized era automatic exchange of information became the norm almost everywhere.
FATCA and CRS are some of the most known regulations that prevent banking secrecy.
CRS is the Common Reporting Standard and FATCA is Foreign Account Tax Compliance Act and it applies to American citizens, while CRS applies to everyone else. These are mechanisms by which banks automatically share your information to your home country (a country that you're a citizen or resident of).
There are also Tax Information Exchange Agreements, by which governments can request information if they suspect something.
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#FATCA #CRS #Taxes #CommonReportingStandard #TaxInformationExchangeAgreements

[@srki22]

My country (Serbia) is not part of that OECD agreement for exchange of information, but nevertheless it signed a tax agreement with many countries and a lot of those agreements have a clauses about automatic information exchange between 2 countries. So tax agreements are another way the countries agree to exchange tax information.

[@venusreena2532]

as the evil grows

[@julliusschneider1377]

Great information. An issue of great interest and to be developed. I read somewhere that the most "secret" place now to hold an account would be the USA or Puerto Rico.

[@cineffect]

If you have multiple passport I think the best practice would be to open a bank account with the passport of country with lowest taxes. How will bank ever know you are a citizen of any other country?

[@VERTICALWisdom]

Our plan is to start from scratch. Overall personal and business structuring, CBI, Renounce and do it cleanly so it is not a worry going forward. The foundation is everything and getting out of the US is imperative.

[@Misanti888]

Nice topic, sir. You said/ implied that there are countries like Vanuatu that are too locally messed up to comply with these information exchanges, also some countries that drag their feet in replying to these info exchanges. Can you do a future video or do you have a video on such countries, especially european, that are part of these info exchange treaties but not so accommodating or reliable to these info requests? Tnx.

[@revenge9431]

Excellent video!

[@OffshoreCitizen]

Thanks! Anything you'd like to see next?

[@samsousayt]

Interested in understanding Thresholds. Example, a Swift transfer of more than 10K CAD is automatically flagged for reporting or investigation, but what about CRS in general ?

[@alfinal5787]

Very interesting topic.

[@OffshoreCitizen]

Thank you! Anything you'd like to see next?

[@alfinal5787]

@@OffshoreCitizen there is some complexity about declaring where you are residing if there are more than 2 countries involved

[@attentioncestpaslegal7847]

So that's why people say : work remotely from Nicaragua and get paid on your foreign bank account → get no tax to pay in Nicaragua. That's because Nicaragua is not a CRS country and thus receives 0 information from other countries. So it's super easy to do tax avoidance.

[@mikaelmagnusson3225]

Regarding the example with Australia, Second residence in Panama and banking in Bulgaria. How can the home country be aware of the second residence in Panama? And second how would they know the bank account in Bulgaria?

[@ITAviation1]

Interesting video. I have a video suggestion. What are your opinions on the weird CBI programs like Vanuatu or Cambodia

[@OffshoreCitizen]

Already made one on Vanuatu kzbin.info/www/bejne/mprNc5aDiK6ha7s Let us know how you liked it and thanks for the other suggestion😄

[@jomonart2140]

informative video thanks Michael. Are you aware of a tax information exchange agreement between Japan and Canada (e.g. CRS or other)? Does the double tax treaty require any automatic info sharing?

[@OffshoreCitizen]

DTAs and TIEAs aren't automatic but CRS is pretty much everywhere now

[@mvp019]

For the Fatca, is the $10K limit (for even one day of a year) applied to each person in a marriage, or does it apply to the couple?

[@Yain_crypto]

I want to know how can i work with Binance, like, if i dont exchange my crypto to fiat there, my country (Spain) cannot find how much money i have? when i use my Binance card, it exchanges to euro and then it pay iirc, do they count how much money i spend in this card in my country?

[@chrave1956]

What authority does OECD have to overrule the UN Proclamation of HumanRights … that’s my question ?

[@OffshoreCitizen]

OECD has no power

[@Bambotb]

Is exchange automatic and every name is shared every time an account is opened ? I highly doubt it for CRS

[@venusreena2532]

We need a data base of places & firms to avoid ... if possible I would think

[@OffshoreCitizen]

Generally it's wise to operate as though they'll find out

[@magicalstateofreceiving2758]

I am a Canadian living in South Korea. My bank is requesting of me to sign some form which would turn over some personal info to CRS. Should I sign this form or not? They are threatening to report us if we don't comply with their request.

[@OffshoreCitizen]

Yes

[@alefermin]

Awesome! Can you do a video on how the US can be a tax heaven?

[@OffshoreCitizen]

Great suggestions, thanks! Anything else you'd like to see?

[@alefermin]

@@OffshoreCitizen I think another good one might be how to learn many languages taking advantage of the EU Schengen Zone open borders, visiting/living in multiple countries and best places and ways to do it

[@FighterFred]

@@OffshoreCitizen Perhaps I can answer. Working as an international freelance in the EU, how can a LLC in the US help me?

[@vace8914]

@@FighterFred I'd like to know this as well, from a viewpoint of a retiree/one who receives disability pension.

[@jackosc4]

I'm an aussie resident, my broker is based in Belarus, they're not signed up to the CRS. I don't believe it best practice to not report to the ATO, but I don't know if i have legally in that respect?

[@NON-2022]

Legally? Are you kidding me? The best practice for ALL governments is to report EVERYTHING and pay and pay.... Nobody really gives a f... if you (or your family) left absolutely with NOTHING!

[@p.c.h.6721]

What’s the name of your broker in Belarus? If I may ask

[@mikaelmagnusson3225]

Is moving the money to an anonymous LLC in the US or Nevis a good idea to avoid CRS or none CRS report? And which is the best?

[@OffshoreCitizen]

CRS doesn't depend on the legal structure it depends on the bank US banks report based on FATCA not CRS

[@NON-2022]

Come ooooon guys... we know that they know and they know that we know that they know and we know that they know that we know... that's how we play the game 😉

[@OffshoreCitizen]

Lol How did you like the video? :D

[@NON-2022]

@@OffshoreCitizen Great video! As usual, nothing more to add ;)

[@RR-vk2tl]

Are there already cases when the Governments send letters regarding foreign accounts? And what is the threshold? Millions in accounts or thousands?

[@OffshoreCitizen]

Yes there are Thresholds are thousands not millions

[@misterpizzaman3581]

But this tax information is only for persons, not companies ...

[@vace8914]

There's different kinds of persons, legal, natural, psychical. The natural person is of us.

[@chocmilkisgood]

"countries like the US and Canada" 🥲

[@JenShea]

Sending you a message via offshore citizen contact form.

[@kemalwitter4683]

Is the USA part of CRS ? Will they share information to the UK?

[@OffshoreCitizen]

They aren't part of CRS but have information sharing under FATCA

[@kemalwitter4683]

@@OffshoreCitizen what I want to know if I've paid the IRS withholding 30% tax from Amazon advertising earnings will the IRS pass that information on to the UK HMRC tax office ? I don't have a USA bank account by the way I have no banking accounts anywhere else in the world just the UK PLEASE ANSWER IM PATIENTLY WAITING

[@michaelgreen5515]

@@kemalwitter4683 I don't know but If you paid thru your UK bank or received the dividend HMRC has this already. The withholding tax at 30% you should get double taxation relief on worse case even if in the highest tax treaty

[@p.c.h.6721]

Double tax treaty between the U.S. and the UK would lower withholdings to 15% But in answer to your question, No, money paid to the IRS directly will not be reported to HMRC

[@20kevron]

How can a 7 figure US citizen legally reduce their taxes to 0-10%?

[@OffshoreCitizen]

There's a few ways but depends on the details of your situation. We've made a few videos about this, otherwise best is probably to book a call and we can go over what might work for you.

[@misterpizzaman3581]

The Pandora papers, where not a single American is implicated ...

[@OffshoreCitizen]

Have you seen our video on Pandora Papers?😄

[@kamil-6561]

Looks like most of them left : )

[@jenzhao3575]

your videos would be better if you rambled less and articulated more concisely. your videos would be GREAT if you could add visuals, not just verbal rambling