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Tax Engineering

Financial entity not obliged to exchange information


Question

What is a financial entity that is not obliged to exchange banking information automatically?

Answer

A financial entity that is not obligated to communicate banking information is a financial institution that presents a very low risk of tax evasion. Financial entities that are not required to report banking information automatically to tax agencies are: 

  1. State entities, regulated international non-profit organizations, and central banks. If any of these entities carries out a commercial activity for a third party, the entity is obligated to communicate information. 
  2. Large-share pension funds, restricted participation pension fund, pension funds of state entities, pension funds of an international non-profit organization or pension funds of a central bank. 
  3. Payment institutions issuing credit or debit cards, card processors or regulated IPSP, money transfer companies that do not own funds raised by third parties. 
  4. Exempt collective investment instruments. 
  5. A trust, in the event that the trustee of the trust is a financial institution, the entity will be obliged to communicate automatic information.


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FINANCIAL SERVICES

Offshore Company

Bank accounts

Prepaid cards

E-commerce package

Payment gateway

Online gambling license

Private foundations