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Old 25.08.2020, 16:47
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My Dutch bank requested confirmation of my tax residence (CRS) - do I need to comply?

After notifying my bank in the Netherlands that I have moved to Switzerland, they have sent to me a form requesting confirmation of my tax residence status as part of the Common Reporting Standard (CRS). No deadline was stated for the return of the form. Is this something that I am legally obliged to provide to them? Are there any repercussions of ignoring the request?

I presume that under CRS, the Dutch tax authorities will share information with the Swiss tax authorities on my account balances and accrued interest in the above-mentioned bank in order to determine my wealth tax - is this correct?
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Old 25.08.2020, 16:58
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Re: My Dutch bank requested confirmation of my tax residence (CRS) - do I need to com

they probably included a leaflet which explained that it was completely voluntary and that they, like other banks, love to send out questionnaires like this just for the fun of it with no legal basis or requirement whatsoever.
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Old 25.08.2020, 17:04
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Re: My Dutch bank requested confirmation of my tax residence (CRS) - do I need to com

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After notifying my bank in the Netherlands that I have moved to Switzerland, they have sent to me a form requesting confirmation of my tax residence status as part of the Common Reporting Standard (CRS). No deadline was stated for the return of the form. Is this something that I am legally obliged to provide to them? Are there any repercussions of ignoring the request?

I presume that under CRS, the Dutch tax authorities will share information with the Swiss tax authorities on my account balances and accrued interest in the above-mentioned bank in order to determine my wealth tax - is this correct?
If you don't reply is a fairly short time scale, don't be surprised when your account gets blocked.
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Old 25.08.2020, 17:16
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Re: My Dutch bank requested confirmation of my tax residence (CRS) - do I need to com

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I presume that under CRS, the Dutch tax authorities will share information with the Swiss tax authorities on my account balances and accrued interest in the above-mentioned bank in order to determine my wealth tax - is this correct?
In order to find tax dodger and to prosecute them. It is your obligation to voluntarily disclose any taxable income and wealth toward the Swiss tax authority. Generally speaking, as long as you are a Swiss resident your global income and global wealth is taxable. Check your cantons reporting thresholds if you are taxed at source.

Btw: The Swiss TIN (Tax identifier number) is the AHV-Number. Can be found on your health insurance card.
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Old 25.08.2020, 17:53
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Re: My Dutch bank requested confirmation of my tax residence (CRS) - do I need to com

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If you don't reply is a fairly short time scale, don't be surprised when your account gets blocked.
I actually rang the bank, but they made no such threats. They just said that if I don't fill it in, I would receive another form in the post. They didn't comment on any deadlines to respond. I'm pretty confused.
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Old 25.08.2020, 18:03
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Re: My Dutch bank requested confirmation of my tax residence (CRS) - do I need to com

Well, if the Dutch think you are resident there, you will pay taxes there, despite residing here and paying taxes here.

Sounds like bureaucracy but it is better if everyone has the correct information.
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Old 25.08.2020, 18:30
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Re: My Dutch bank requested confirmation of my tax residence (CRS) - do I need to com

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After notifying my bank in the Netherlands that I have moved to Switzerland, they have sent to me a form requesting confirmation of my tax residence status as part of the Common Reporting Standard (CRS). No deadline was stated for the return of the form. Is this something that I am legally obliged to provide to them? Are there any repercussions of ignoring the request?

I presume that under CRS, the Dutch tax authorities will share information with the Swiss tax authorities on my account balances and accrued interest in the above-mentioned bank in order to determine my wealth tax - is this correct?
I received the same letter. Those could become delicate matters, I always prefer to be transparent, but I am sure there are "cowboys" who would ignore it without thinking twice and nothing happened to them.

Even Poland's tax office, where I lived before moving to the Netherlands, was also quite eager to know where I payed my taxes for the last two years despite I put a lot of effort to properly cancel my registration there before leaving.....they were probably missing my income statements so much
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Old 25.08.2020, 18:34
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Re: My Dutch bank requested confirmation of my tax residence (CRS) - do I need to com

https://over-ons.belastingdienst.nl/...lastingdienst/

Misschien heeft het iets met bovenstaande te maken ?
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Old 25.08.2020, 21:31
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Re: My Dutch bank requested confirmation of my tax residence (CRS) - do I need to com

Thanks a lot for your thoughts everyone. Look like the best course of action will be to just provide the information.
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Old 25.08.2020, 21:36
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Re: My Dutch bank requested confirmation of my tax residence (CRS) - do I need to com

I deal with this on a day to day basis.


Is there a deadline? Yes. The bank has to report all customers/balances as at the 31st December each year. So the deadline is whatever date near the end of the year the bank thinks gives them time to sort the paperwork in time to do the reporting (which I think is due the following June). This will USUALLY be well before the end of the year.

Are there any penalties? Yes. The bank may suddenly freeze, block, or close your account if you do not comply. DO NOT THINK THIS WILL NOT HAPPEN TO YOU. Your bank faces massive fines and other repercussions from their national banks if they do not comply properly, you are nowhere near important enough a customer to them to avoid being dropped. I have customers who have had this happen to them.


Who gets the info? The bank reports to its national regulator. They report that "We have an account for Mr X, the balance was X,000,000, and Mr X tells us he is tax resident in X country". The national regulator sorts the data into reportable countries, and then automatically exchanges the relevant bit with the regulator in that individual country.



So Netherlands will tell the Swiss "Dutch banks have accounts for all these people who tell us they are tax resident in Switzerland, and here is a list of names and balances"


The idea is that the Swiss can then run the list against the tax database, to check that Mr X is telling the truth on his Swiss tax return when he says his worldwide wealth is just X,000. Hmmm... his balance in Netherlands is X,000,000.



Now whether or not they actually WILL do this is another matter. But many nations have been building huge data crunching warehouse facilities with fuzzy logic etc. to automate the process of highlighting tax cheats. I'm sure some of our IT involved members can give you a view on whether that works or not.


TLDR - fill in the damn CRS form. Don't lie on your tax return. Sleep soundly.


Kind regards






Ian
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Old 26.08.2020, 06:49
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Re: My Dutch bank requested confirmation of my tax residence (CRS) - do I need to com

Many thanks for the detailed information Ian! Makes a lot more sense now. Will fill in the form
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