15 Nov 2017 4:53 PM

Has your bank asked where you are tax resident?

Banks and other financial institutions are contacting customers to ask them to clarify their tax residency status. If you have been contacted do you wonder why and do you worry about how you should answer?

So why are banks contacting their customers?

In a nutshell, banks are collecting information that will help to cut out tax evasion under a regime known as the Common Reporting Standard.

What is the Common Reporting Standard?

The Common Reporting Standard is an agreement between more than 70 countries to exchange information with each other regarding investments held in those countries.

Under this system the banks are required to let the tax authorities know the names of individuals who have accounts with them and in which countries they are resident. This information is then shared amongst the countries that agree to the Common Reporting Standard.

Where am I resident?

It’s not as straightforward as its sounds. It is possible to be resident for tax purposes in more than one country and it’s also possible to be resident nowhere.

If you are not sure where you are resident we can help you determine what information you should provide to your bank.

If you are declaring all of your income correctly, you need not be alarmed as everything should be transparent. 

However if you think you may have failed to disclose something to the relevant tax authorities we strongly advise that you don’t delay.

If you have any questions please email london@alliotts.com with brief details of your situation.