Tax Residence Indicia if self-certification is a high risk RbI / CbI jurisidiction

FI may claim that he does not know if client has other tax residencies if client certifies he does not have another permanent home.

It is relatively simple for an FI to determine other potential residencies based on the OECD Model Convention (MC) on residency. It is not the FIs task to determine which single jurisdiction has the sole claim on tax on the client based on double tax agreement tiebreakers. The FI must just determine the indicia that a client is tax resident in a jurisdiction.

The list of questions below, based on the OECD MC will help determine indicia of where the client has potential tax residencies. Thereafter, the client may cure these indicia. Otherwise CRS reporting will be sent to all the jurisdictions.

Additionally, the FI should use reasonableness in determining if othee residencies exist. It is implausible that a multi millionaire is living in a cheap apartment, or that client cannot show stamps in passport indicating travel.

RbI Country
Country B Country C Country D
Since 29 October 2014, which jurisdictions resident prior to current RbI / CbI?

RbI Country
Country B Country C Country D
Where do you have acess to an owned or rented dwelling, available at all times continuously?

RbI Country
Country B Country C Country D
Personal relations:
Family - immediate, nuclear
Family - wider
Political associations
Cultural relationship of shared group identity which can be reasonably traced historically
Driving license issued
Where cars registered
Clubs - health, sports, leisure
Clubs - Health, sports, associations
Health insurance
Economic relations:
Place of business
Attendance of business meetings
Corporate appointments of executives and committee members
Hotel expenses
Crediting of income realised
Place administers property
Ownership of movable goods - furniture, art, vehicles

RbI Country
Country B Country C Country D
Works or carries on other activities outside the municipality of permanent residence, provided keeps abode therein, returns thereto whenever possible, and discloses the intention to keep therein the center of own family and social ties
Physical stay of at least 183 days per year

RbI Country
Country B Country C Country D
One or more telephone numbers in a Reportable Jurisdiction
Current mailing or residence address (including a post office box) in a Reportable Jurisdiction;
Standing instructions (other than with respect to a Depository Account) to transfer funds to an account maintained in a Reportable Jurisdiction
Currently effective power of attorney or signatory authority granted to a person with an address in a Reportable Jurisdiction
A hold mail instruction or in-care-of address in a Reportable Jurisdiction

RbI Country
Country B Country C Country D
Tax clearance certificate or equivalent

RbI Country
Country B Country C Country D
Indicia of other tax residences

What is Permanent Home?

OECD Model Convention 2017 updates commentary to paragraph 13 on Permanent home:
As regards the concept of home, it should be observed that any form of home may be taken into account (house or apartment belonging to or rented by the individual, rented furnished room). But the permanence of the home is essential; this means that the individual has arranged to have the dwelling available to him at all times continuously, and not occasionally for the purpose of a stay which, owing to the reasons for it, is necessarily of short duration (travel for pleasure, business travel, educational travel, attending a course at a school, etc.). For instance, a house owned by an individual cannot be considered to be available to that individual during a period when the house has been rented out and effectively handed over to an unrelated party so that the individual no longer has the possession of the house and the possibility to stay there.
What is Centre of Vital Interest?

There is relatively little literature on the meaning of the expression "CVI". The OECD MC description of CVI has remained the same for fifty years, viz: is necessary to look at the facts in order to ascertain with which of the two States his personal and economic relations are closer. Thus, regard will be had to his family and social relations, his occupations, his political, cultural or other activities, his place of business, the place from which he administers his property, etc. The circumstances must be examined as a whole, but it is nevertheless obvious that considerations based on the personal acts of the individual must receive special attention. If a person who has a home in one State sets up a second in the other State while retaining the first, the fact that he retains the first in the environment where he has always lived, where he has worked, and where he has his family and possessions, can, together with other elements, go to demonstrate that he has retained his centre of vital interests in the first State.
The problem with this CVI definition is that it gives no priority to personal vs. economic relations. Domestic tax residency laws usually give preference to one or the other. What if individual has stronger personal relations in one country and stronger economic relations in second country. Note the CVI has dominance of number of days present.
Habitual Abode

Mainly physical stay of 183 days per year

Is determined by the voluntary habitual dwelling of a person in a given place, so that both the objective aspect of the stable dwelling in that place and the subjective aspect of the willingness to remain in such place meet the definition of residence. Neither the continuity nor the permanence thereof is required for the condition of habitualness of the abode to exist.

Consequently, the habitualness of the abode remains when the person works or carries on other activities outside the municipality of residence, provided he keeps his abode therein, returns thereto whenever possible, and discloses the intention to keep therein the center of own family and social ties.

Residence is not invalidated by absences due to special needs deriving from contemporary lifestyles, such as study, work, care, or leisure reasons. Source of this article was mainly from The Expression of 'Centre of Vital Interest' in OECD Article 4.2 Model Tax Convention