Dear all, I was wondering about one particular aspect of transacting:
Let's assume one has an EMI/bank account in the EU which is bullet proof not to be reported under CRS anywhere - for instancethanks to an insider who turned off completely any regulatory reporting for that acc number
You invoice business partners for various services, generally charging no VAT - let's say you avoid or are exempt from the VAT scheme
What are the other ways tax authorities use to monitor and police businesses (or freelancers)?
For instance I heared that there is some VIES scheme in EU, how is it used? What if someone is not listed there? (or maybe transacts with non EU clients so no need to be in VIES)
Could it be that the activity resurfaces due to routing checks or some particular audit on the client's files - even abroad - and then these invoices are somehow picked up among thousands of others and the money trail followed?
Also of course it is assumed that the money from the "protected" account is never transfered to any traditional personal account, just spent there or transfered to other subjects (businesses and relatives)
I.e. what is the total TOOLBOX tax officers sit on in EU? - Mostly those algorithmic and periodic checks
With your setup it will most properly not be an issue to have a last longing solution. Depending on how you behave. For instant if you use a debit card to withdraw amounts frequently at the same ATM near you or if you receive very large amounts just to forward them to another banking facility.
If you really have such an account where CRS is turned off and it actually be a ghost account within that EMI, then you are luck and need to use it wisely.
The authorities will have no chance to trace it unless you are behaving like a dumb idiot.
Thanks, yes that is what also I was wondering, how much of a threat is the cc name matching at ATMs in the EU? I mean I don't understand a process how an ATM can read the cardholder name (it reads what's physically written on the card?) and then match it in some tax office registry..
Other concern was the clients itself; since they are a regulated business they have a compliance department occassionaly asking for "accountant or auditor's statements" or "tax residency certificates". I guess these can be managed, in the worst case by using retouched ones (darks) to make everything look in line but I wouldn't underestimate the risk of actual business partners/clients blowing a whistle on their supplier. Happens I guess all the time in the construction industry - suppliers policed and monitored, crazy requirements by the clients ecc
I don't know how much of a threat other tools of the policymakers are, like VIES, invoicing process monitoring and other such "initiatives"
