[dzhiurgis]

Can someone answer how TransferWise gets away without "reporting this information to HMRC or any other tax authority." aka dream for tax evaders (who get paid in foreign currency)?

[regecks]

Why do you say they get away with it?

TW for sure reports to my country's financial intelligence agency (AUSTRAC).

I get paid in foreign currency via TW and it's pretty amazing.

[dzhiurgis]

What do you mean "for sure"? They claim they don't - https://transferwise.com/help/articles/2932394/how-does-tax-...

[wildfire]

In order to operate in Australia, you must report transactions over a certain threshold.

See: https://www.austrac.gov.au/business/how-comply-guidance-and-...

I have it good authority [1], that quite a few local Australian banks report when the threshold is 1000 or more.

For international transfers any amount must be reported:

https://www.austrac.gov.au/business/how-comply-guidance-and-...

[1]: My father works there.

[lmz]

Your linked Austrac page refers to cash transactions ("physical currency"). This one[0] however, says that any international funds transfer instruction (of any amount) needs to be reported.

[0]: https://www.austrac.gov.au/business/how-comply-guidance-and-...

[dzhiurgis]

If you get their eftpos card and never wire remaining balance to aussie then it can remain untaxed?

Plus you're not doing international wire - they transfer from their local account (not 100% sure how it's accounted tho).

[lukeholder]

> If you get their eftpos card and never wire remaining balance to aussie then it can remain untaxed?

This is what I want to know

[TheCapeGreek]

Most likely because they pass that buck to their local partners.

In South Africa for example, they've been partnered with exchange4free (dodgy name but legit) but recently changed to Bidvest. If TW isn't reporting, these third parties are. You have to sign mandate forms once a year explicitly for reporting purposes.

[mrleinad]

I'd love to hear an answer for this one.