Bank contacting revenue

Teaandcoffee

Hi guys, could do with some feedback please.

I lost my job in August of this year. I did not sign on with social welfare as I stupidly thought I might be lucky enough to find work. For weeks I didn't get as much as an acknowledgement to the hoards of CV's I sent to different companies and my savings began to slowly diminish.

I got a call in November from my previous employer who said she could give me a couple of hours each week but it would have to be off the books as the company was in financial difficulty. The money was dire but I felt I had no option but to take her up on her offer.

To cut a long story short I had applied for my mortgage payments to be restructured. I received a letter from the bank to say they needed to speak with me. When I met them they told me that they had done some investigating and would be contacting the revenue about my unpaid taxes with this company.

I am really concerned to say the least. I have always complied and payed my taxes in the past. I stupidly took the job on out of sheer financial stress.

Anyone take a guess were this may lead?

CamperMan

Teaandcoffee wrote: »

Hi guys, could do with some feedback please.

I lost my job in August of this year. I did not sign on with social welfare as I stupidly thought I might be lucky enough to find work. For weeks I didn't get as much as an acknowledgement to the hoards of CV's I sent to different companies and my savings began to slowly diminish.

I got a call in November from my previous employer who said she could give me a couple of hours each week but it would have to be off the books as the company was in financial difficulty. The money was dire but I felt I had no option but to take her up on her offer.

To cut a long story short I had applied for my mortgage payments to be restructured. I received a letter from the bank to say they needed to speak with me. When I met them they told me that they had done some investigating and would be contacting the revenue about my unpaid taxes with this company.

I am really concerned to say the least. I have always complied and payed my taxes in the past. I stupidly took the job on out of sheer financial stress.

Anyone take a guess were this may lead?

but you didn't declare the income from the cash in hand job!!

best thing to do is don't avoid the situation, confront it and be honest.

Gareth2011

How could the bank know about your job if it was cash in hand and wasn't going straight into your account? were you lodging it as salary or something? Im assuming you told them you didn't have any work and you were not on social so they wondered where money was coming from if you lodged it? I know I lodge my social into the bank on a weekly basis and they never ask about it but on the pther hand I had told them how much my social would be and that I was going to be on it from x date.

TiGeR KiNgS

register asap and your likely only to get penalties and a surcharge.

Teaandcoffee

Thanks guys. I rang my boss and told her I could not take on any more work but apparantly the bank had contacted her and said they were also reporting her to the revenue.

I agree my only option is to come clean.

LH2011

Teaandcoffee wrote: »

Thanks guys. I rang my boss and told her I could not take on any more work but apparantly the bank had contacted her and said they were also reporting her to the revenue.

I agree my only option is to come clean.

its none of the banks ff'in business. who do they think they are ringing people like that.

CamperMan

LH2011 wrote: »

its none of the banks ff'in business. who do they think they are ringing people like that.

the banks are owned by the government, the government can do what it wants.. :mad:

drunkmonkey

CamperMan wrote: »

the banks are owned by the government, the government can do what it wants.. :mad:

It has to operate within the law, sounds like there's data protection laws been broken here. I don't see how the bank would know where op's cash was coming from. Something doesn't make sense. We haven't the full story.

CamperMan

drunkmonkey wrote: »

It has to operate within the law, sounds like there's data protection laws been broken here. I don't see how the bank would know where op's cash was coming from. Something doesn't make sense. We haven't the full story.

this is Ireland! laws are meant to be either broken or bent

ted1

If you only started in November you should register a company and claim your self employed.

Wheelnut

Something does not add up. Is there a detail missing from T&C's account? The bank could not know about the cash-in-hand arrangement unless they were told. If they saw extra cash lodged there could be several explanations. For instance: parents could be helping out and that's totally legal. Besides all that, the work was a couple of hours a week at dire rates which means the money can't be much, so why are the bank noticing it?

If you haven't been claiming social welfare than you aren't in too bad a position, your employer is worse off I'd say. I certainly wouldn't be registering a company to claim I was self employed. First thing to do is to sign on anyway and get all that sorted.

SugarHigh

Surely the bank is working against their own interest here? They are going to reduce your ability to repay back their loan. So it's obviously something they are legally required to do.

SugarHigh

Wheelnut wrote: »

Something does not add up. Is there a detail missing from T&C's account? The bank could not know about the cash-in-hand arrangement unless they were told. If they saw extra cash lodged there could be several explanations. For instance: parents could be helping out and that's totally legal. Besides all that, the work was a couple of hours a week at dire rates which means the money can't be much, so why are the bank noticing it?

Maybe the OP and their boss share the same bank and they figured it out on the employers end.

elaverty

HOW DID THE BANK KNOW YOU WERE GETING CASH IN HAND ?????

drunkmonkey

SugarHigh wrote: »

Maybe the OP and their boss share the same bank and they figured it out on the employers end.

That's not up to the bank to contact anyone. There not allowed. They report it to the authorities and let them manage the situation.
I failed my bankers exam but I do know the bank can't do what op is saying they done.

exaisle

If the bank contact the Revenue, sue them. Get the name of the person in the bank who threatened this and contact head office and make it clear that you will sue.

You just havent declared the income you have earned...yet. There's nothing to stop you making a tax return for 2011 after year end and declaring it then.

People are too lenient with banks and should learn to tell the banks to f**k off more easily. The days of cow-towing to the banks is over...they are just there to provide a service and if they dont provide it, change bank.

The banks are self-serving so it's up to the customer to adopt exactly the same attitude.

dobsdave

Sounds like one of your friends playing a practical joke to be honest.

ScouseMouse

Sorry lads, but I think you are all wrong.

Even the DPA would have a clause reserving the right to report illegal activity or tax evasion.

It may even be in the conditions of the bank account.

If it is in the terms and conditions of the account, then when you signed up, you agreed to disclosure to the revenue !

ScouseMouse

Did a bit of digging and have found a reference in the Data Protection Act Section 2b which looks kinda like this situation.

My reading of it is that a data controller (THE BANK), can hand over details to an authority in the even of fraud or suspected fraud (fraud against revenue?)

Basically, working cash in hand is illegal and they cannot be held acccountable for reporting you.

(Still dont agree with it though.)

Let us know how you get on.

Tow

It is the bank who is in the wrong here on a number of grounds (Defamation and Data Protection by telling the employer). At the very least the bad publicity if named will have a lot of customers in a similar situation leaving.

The OP has not claimed any SW, so no fraud there. They have the guts of a year to file a tax return for 2011 and their unused tax allowances since August will probably more than cover their self employed earnings, resulting in a tax refund back to the OP.

Zulu

OP is not giving us the full story.

Jet Black

2 problems I see with the op.

1. How did the bank find out? Was your employer still putting money in your account under their name?

2. The bank would not call you in and tell you that they have reported you as the report they send is sent from the bank to head office and dealt with at the fraud department who send the report to the revenue. This is where the banks liability ends. It's then up to the revenue on what action to take.


Could you even imagine a bank worker calling in customers and saying this to them? They would be beaten up on a daily basis.

I agree with Zulu this isn't the full story.

Gareth2011

elaverty wrote: »

HOW DID THE BANK KNOW YOU WERE GETING CASH IN HAND ?????

That's what I said. Something is missing here. Like if I lodge cash into the bankk every week and I don't give an explanation as to where it came from and the bank doesn't ask there is no way they could know it was cash in hand unless they tapped his phone or something but thats too far fetched. It's his own fault at the end of the day and his bosses. If you going to get cash in hand you keep it away from where it can be seen (so the bank) and you claim your social welfare so there are still payments going into your bank. Don't be a martyr and say oh il get a job in a few weeks when there are 400 k people out of work already. That really is a silly UNREALISTIC way to think in the current climate.

Gareth2011

drunkmonkey wrote: »

That's not up to the bank to contact anyone. There not allowed. They report it to the authorities and let them manage the situation.
I failed my bankers exam but I do know the bank can't do what op is saying they done.

Their not allowed to contact anyone anyone but they can report it to the authorities? How can they report it without contact?

Gareth2011

superscouse wrote: »

Sorry lads, but I think you are all wrong.

Even the DPA would have a clause reserving the right to report illegal activity or tax evasion.

It may even be in the conditions of the bank account.

If it is in the terms and conditions of the account, then when you signed up, you agreed to disclosure to the revenue !

Exactly. Why do people think the bank takes your pps no now? it's not to see if it looks nice thats for sure :rolleyes:

Bigcheeze

The OP is on a wind up. Don't waste your hot air on this folks.

Gareth2011

superscouse wrote: »

Did a bit of digging and have found a reference in the Data Protection Act Section 2b which looks kinda like this situation.

My reading of it is that a data controller (THE BANK), can hand over details to an authority in the even of fraud or suspected fraud (fraud against revenue?)

Basically, working cash in hand is illegal and they cannot be held acccountable for reporting you.

(Still dont agree with it though.)

Let us know how you get on.

But the bank calling him? To me that part doesn't make sence ( Can you come into this room please Mr T&C we have had to report you for tax evasion because you've been a bold boy). Everyone works cash in hand at some stage depending in what their line of work is but to get caught by the bank and reported is just bad luck.

Teaandcoffee

Thanks for the feedback.

I'm sorry I didn't explain myself properly in my opening post. The bank became aware of the situation when I handed my bank statements into them, as I was having difficulties paying my mortgage.

They realised I was not taking in a regular wage and wanted to know how I was managing to pay part of my mortgage when my income was supposed to be nil.

They called me in for a meeting and basically called me a liar. They said they had being doing some investigating and were not happy with their findings.

They want me to get letters from employer that all my taxes are up to date etc and they will also be contacting revenue.

I honestly don't know any more than that. My only other though is that somebody may have tipped them off???

drunkmonkey

Tell them your Self Employed, and your under no obligation to make a tax return yet. There is nothing they can do. Give your employer and invoice for the work carried out and your both in the clear. No crime.
What they can report you to the revenue for is money laundering but there is no evidence of that here. They are not meant to do anything besides report you and they are certainly not allowed tell you there reporting you as they are then aiding & abetting fraudulent activity by tipping you off.
The bank are out of order on this one. Do not accept threats and consult a solicitor. There've already broken the law.
The bank are so wrong here on so many levels it's not funny.

Zulu

Teaandcoffee wrote: »

Thanks for the feedback.

I'm sorry I didn't explain myself properly in my opening post.

Taking you at your word, & while this sound really strange, I'd advise the bank that you are trying very hard to repay what you owe them, and that that is what they should focus on.
With respect to the revenue, advise them they could probably shorten the whole process and save you some hassle if they also contacted the DPC while contacting revenue. Advise them that if they persist on threatening you with revenue you'll have no choice but to firstly prioritise how little of your income thats left into sustaining your welbeing and not the banks intrest, then you'll be compelled to contact the DPC.


In short: If they persist, walk out. In future, the mortgage will come last.