I recently (December 24, 2020) received a letter from my Taiwanese bank requesting information on my tax residency status for the purpose of information sharing with other tax jurisdictions. Is this something that all holders of Taiwanese bank accounts are receiving?
What was annoying was that the deadline for providing your information to the bank was just days after the letter was sent out (after which the bank itself would automatically report your account to the authorities). “Anything else we’ve forgotten to do this year? Oh, yeah. Those pesky CRS letters! Quick. Send out 'em all out now!”
Does anyone know a good tax consultant or lawyer with familiarity with this issue, especially one with some knowledge of Australian tax residency laws?
The information collected will only be kept in record and provided to the domestic tax authorities, the Internal Revenue Service (IRS), or third-party to process and utilize for the above-mentioned purposes within the duration in accordance with statutory requirement.
Only foreigners so they can up their numbers on “accounts reported” to make themselves look good and feel good while masking the Taiwanese tax evaders.
If you don’t wrongly “self certify” nothing will happen.
The bank will have an internal process where they will look over it and see if you have listed a postal address in another country or have regular transfers abroad there. If not… then they shouldn’t report it to Taiwan tax authorities. If they do then it will be listed that you didn’t declare as a tax resident and they will see that.
If you wrongly “self certify,” your home country tax authorities will investigate further to determine and may cause trouble upon returning (as you technically declared that you should be paying tax there)