All banks in that country must meet a series of requirements, among the most important are confirming the tax residence of the account holder and in turn, sending complete financial information to the tax authorities of their country.

Why are people in CRS countries concerned?

The complication that some people have with CRS countries is that they do not like the idea that a bank where they are going to carry out operations reports their financial holdings to the tax authority of their country of residence.

One of the considerations for CRS countries is that you must prove that you have tax residence somewhere, otherwise, banks are obliged to report their holdings to their country of origin. In addition, they report your account information to the country that claims to have tax residence.

What are people doing in CRS countries?

There are those who think they can avoid CRS and simply "self-certify" by telling banks that they are resident in a certain country when the reality is completely different - this is a horrible strategy.

If you cannot grant an active tax identification number or the bank does not consider you, they only send your financial information to the authorities in all the nations in which they believe you may be a tax resident.

In conclusion, the information released by banks in CRS nations helps governments and tax authorities to crack down on taxpayers who are not paying their taxes or reporting their financial holdings correctly.

For example, thanks to the financial information that banks are now forced to release under CRS, Australian tax authorities have just found that 370,000 Australian taxpayers had well over $ 100 billion in undisclosed foreign accounts.

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