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- Jun 2011
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Here is some information about the reporting that will apply for the Cyprus banks:
CRS recognizes 2 types of companies:
1. Active Companies
2. Passive Companies
An Active Company is the company that meets any one of the following criteria:
(a) Less than 50 percent of the company's gross income for the preceding calendar year or other appropriate reporting period is passive income and less than 50 percent of the assets held by the company during the preceding calendar year or other appropriate reporting period are assets that produce or are held for the production of passive income;
(b) The stock of the NFFE is regularly traded on an established securities market or
(c) Substantially all of the activities of the Company consist of holding (in whole or in part) the outstanding stock of, or providing financing and services to, one or more subsidiaries that engage in trades or businesses other than the business of a Financial Institution
A Passive Company is a company that is not active. Basically it includes companies that have income from investment activities like dividends, interest, rent and royalties.
The beneficial owners of an Active company will not be reported by the bank
The beneficial owners of a Passive company will be reported by the bank.
So, if the company is an active, then no reporting will be made by the banks.
In addition, if you don't go for a real bank account but can use some of the digital currency accounts provided for instant by AdvanceCash, WorldCore, Xapo etc. then you can setup the entire thing with fake documents. So you don't need to worry about reporting at all.
