Automatic exchange is here to stay. The winning strategy is clean alignment—not secrecy.
What gets reported. Under CRS/FATCA, financial institutions report account balances, interest, dividends, and certain gross proceeds to the account holder’s tax residence.
Consistency beats surprise. Ensure tax returns, bank KYC, and entity charts tell the same story.
Entity choices. Some entities (e.g., professionally managed investment entities) report differently; trusts require careful role mapping (settlor, protector, beneficiaries).
Practical privacy. Use purpose-built operating accounts, avoid mixing personal and business flows, and keep relationship managers informed.
When to restructure. If multiple residencies create conflicting reporting, consider simplifying—or documenting—before the next reporting cycle.
FAQ:
- Can I opt out of CRS? No. You can only align facts so reporting matches reality.
- Will banks accept “do not report”? They won’t. Editor’s Note: Privacy today is achieved through clarity and design, not silence. Tags: CRS, FATCA, Reporting, Compliance