Paxum and taxes

[Ben]

A few days ago when I logged into my Paxum app, a new screen appeared instead of the dashboard. On this screen I was required to enter my tax ID or my personal identification number fromy ID card. A friend of mine inquired at paxum and this is what they replied:

To help protect the integrity of tax systems, governments around the world are introducing a new information-gathering and reporting requirement for financial institutions. This is known as the Common Reporting Standard (CRS).
Under CRS we are required to determine where you are ‘tax resident’ (this will usually be where you are liable to pay income taxes). This information, along with the information relating to your accounts. may then share this information with different countries’ tax authorities.
Completing this form will ensure that we hold accurate and up to date information on your tax residency.
If your circumstances change and any of the information in this form becomes incorrect, you are required to provide to an updated Self-Certification Form within 30 days.

Where to go for further information
The Organisation for Economic Co-Operational and Development (OECD) has developed the rules to be used by all the governments participating in the CRS and these can be found on the OECD’s ‘Automatic Exchange of Information (AEOI) website: www.oecd.org/tax/automatic-exchange/
If you have questions about how to define your tax residency status, please visit the OECD website or speak to your tax advisor, as we are not allowed to give tax advice.`

Has anybody else received this forced screen with a mandatory question about tax?

if I’m reading their explanation correctly, it doesn’t sound good at all. As a matter of fact I don’t know any other similar service to Paxum that implemented the same thing or to such an extent.

Does that mean that they are going to be reporting every transaction that you get in your paxum wallet to your local country tax authorities? Or is this only some kind of sham and they are doing it pro forma only?

[ghostkore]

Patreon does the same thing and so do some affiliate programs like AdultForce.

I think it’s mostly because of new EU regulations in place since February that require these kind of services to report the income their users generate to combat tax evasion.

[GayDemon]

I did get the same message as well.

It’s normal practice with all banks in most EU countries. All banks in one way or another report everything to the tax office, there might be limits before it’s reported and another story if the tax office actually looks at it. But you have to assume that all money transferred to your bank accounts are reported to authorities.