Bank contacting revenue

Zulu

Also, if the truth is being told: name and shame the bank

ScouseMouse

I have no doubt the bank is free to do this. If they kept quiet about illegal money they themselves would come under fire.

I dont know about the facts of this story, like everyone else, it sounds like we dont have the full story.

I have mentioned this thread over on the legal discussions forum for their opinion but I know myself, and I would put a tenner on it, the bank has the right to notify revenue and the guards about undeclared money which it appears, is the case here. I dont condone them doing it, but I am sure they are entitled to tell the Revenue.

The bank officials are personally liable if money laundering happens and the revenue have more powers than guards.

This country is a nanny state.

BuffyBot

camperman et al, keep the posts constructive. Anymore of these "ah sure banks are owned by the government and can do what they like" style posts and you'll find your time of this thread, and others on this forum, cut short. It's disruptive and not in the least bit useful in resolving the query at hand.

Jet Black

I don't think you'll be in much trouble anyway. Your employer on the other hand could be facing fines of over 10k. Contact your local citizens advice office first for advice.

drunkmonkey

Jet Black wrote: »

I don't think you'll be in much trouble anyway. Your employer on the other hand could be facing fines of over 10k. Contact your local citizens advice office first for advice.

If OP invoices his cash employer there is no crime. He does not need to set up a company, register for vat etc to do that. He simply needs an invoice with his details on it. It's perfectly legal.

Tazz T

You don't have a problem. Your employer does.

You have at least until next September to report this income. You might even have two years as this is just your first years as 'self-employed' or a 'sole trader'. You could consider registering as such, but if you aren't going to be doing any more work, then there's no point - it's just casual work and should be reported next year as part of a self-assessed tax return.

If you want to put your mind at ease or are considering going out on your own, perhaps see an accountant?

As for the bank, should be tell them as a result of their actions (ie, getting in touch with your employer) you no longer have the means to pay the mortgage and they'll have to wait. Them shopping you to the revenue means nothing to you.n You've done nothing illegal.

Curly Judge

Perhaps my memory is failing me but I don't remember a law being passed requiring or even allowing a bank to pass on information to the Revenue.
Since when have the banks become snitches?

drunkmonkey

Employer has no problem as long as they get an Invoice from OP adding up to the amount paid. It's as if OP was a contractor.

Sample:

Invoice


Joe Bloggs
Grafton Street
Phone 087 4343443

Date 29/12/2011

Construction of Fence, set fee €2000.

Vat N/A


Payment due within 30 days.


____________________________________

Give that to your employer. Ge them to talk to their accountant first. The only thing missing is the invoice for you both to be in the clear.

Owryan

A family member recently had a similar experience, his bank reported him to revenue after seeing some suspicious activity on his account.

He was lodging money from gambling and it was flagged .

When he spoke to his bank manager he was told that financial institutions are obliged to report any suspicious activity.

This was a year ago and revenue are still dealing with it.

drunkmonkey

Curly Judge wrote: »

Perhaps my memory is failing me but I don't remember a law being passed requiring or even allowing a bank to pass on information to the Revenue.
Since when have the banks become snitches?

It became law in 2009 it's part of the Criminal Justice act, It's to combat terrorism and money laundering. What's it's not meant to be used for is banks threatening customers. Complete abuse of the law in this instance.

MagicSean

Perhaps I missed something. If you are only doing a few hours a week why would you even owe taxes. At the end of the year just log onto PAYE site and record the extra income and look for a new P60.

drunkmonkey

Owryan wrote: »

his bank reported him to revenue after seeing some suspicious activity on his account.

He was lodging money from gambling and it was flagged .

When he spoke to his bank manager he was told that financial institutions are obliged to report any suspicious activity.

This was a year ago and revenue are still dealing with it.

That's a prefect example of what the law is there for. Gambling and crime go hand in hand. It's where a lot of money is laundered.
The smart criminals are now using things like pre payed credit cards. Dirty money in, cleaned up and handed back out for a small fee with no identification required.

Jet Black

How would declaring being self employed affect JSA? That would be my biggest worry.

dahamsta

I keep seeing people giving advice to others that they should "declare" themselves as sole traders and I have to wonder where they're getting their info. Perhaps the law has changed since I was a sole trader, but I never had to declare myself as anything to anyone. Once my income tax was paid every year the Revenue didn't give a crap who or what I was.

Wheelnut

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?)

At the risk of confusing matters by going back too far in the thread, I read that link by Superscouse and the bit that stuck out for me was the final paragraph:

Data Protection Comissioner wrote:

Accordingly, for clarity the sharing of personal data by a data controller with An Garda Síochána in relation to the commission or alleged commission of an offence is legitimate under the Acts and may take place. No other sharing of information between data controllers in relation to the commission or alleged commission of offences, including in relation to fraud, may take place in compliance with the Data Protection Acts.

That seems to say they can only report a matter to the Gardai and nobody else.

ScouseMouse

Wheelnut wrote: »

At the risk of confusing matters by going back too far in the thread, I read that link by Superscouse and the bit that stuck out for me was the final paragraph:



That seems to say they can only report a matter to the Gardai and nobody else.

Heres another bit of it:

Section 2B(1) outlines additional conditions which would legitimise such processing. The most relevant in this context are likely to be:



(vi) the processing is necessary -

(1) for the administration of justice,

(11) for the performance of a function conferred on a person by or under an enactment, or

(111) for the performance of a function of the Government or a Minister of the Government,


(vii) the processing –

(I) is required for the purpose of obtaining legal advice or for the purposes of, or in connection with, legal proceedings or prospective legal proceedings, or

(II) is otherwise necessary for the purposes of establishing, exercising or defending legal rights

Surely Revenue is classed as government?

Zulu

drunkmonkey wrote: »

It became law in 2009 it's part of the Criminal Justice act, ...

No it didn't, the act you refer to still hasn't come into effect.

Wheelnut

superscouse wrote: »

Heres another bit of it:

...

(111) for the performance of a function of the Government or a Minister of the Government,


...

Yes, I did read that including the parts highlighted by you. (They are on the same page). Never-the-less, the commissioner's footnote to the whole thing is what I quoted. There seems to be a little discrepancy but I know the Revenue have the powers to obtain information.

In this case it may all be academic because no matter what way it's looked at, the bank seem to be acting wrongly. I suspect they are just putting the frighteners on poor T&C so as to screw more money out of him.

LH2011

Wheelnut wrote: »

Yes, I did read that including the parts highlighted by you. (They are on the same page). Never-the-less, the commissioner's footnote to the whole thing is what I quoted. There seems to be a little discrepancy but I know the Revenue have the powers to obtain information.

In this case it may all be academic because no matter what way it's looked at, the bank seem to be acting wrongly. I suspect they are just putting the frighteners on poor T&C so as to screw more money out of him.

whatever legislation is in place, it certainly does not allow / permit, the bank to go ringing people mouthing off, saying they are going to report someone,
i wonder what bank this is, and how the Chief Executive of the bank would
react to his/her bank carrying on in such a fashion..

what bank is this?

Zulu

Op, why haven't you named the bank? Name & shame please

Teaandcoffee

Will name them the minute I get the all clear from a mod. All I can say at the moment is it is not an Irish owened bank.

Spoke to employer who thinks it best I register as a sole trader and invoice her for the amount I received.

I remember reading months and months ago on this forum about somebodys brother who had a similar experience so I am presuming I am not alone with this problem.

dohouch

Was in my bank, AIB, today just after reading this post. As I was a bit curious myself having assumed that bank secrecy was a given in all liberal democracies. Yes the State, Justice or Revenue could ask for my account but only by way of a court order.

It seems though that since 1999, local branches, where I was today, are under an obligation to raise cases of suspected fraud with their superiors in the bank. This makes sense that the banks would have a specialized section whose job it would be to break the "gold standard of Bank Secrecy" It's not as if the person you're dealing with in your branch makes the contact, they can only pass it higher up the food chain.

GerardKeating

superscouse wrote: »

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

Working "Cash in Hand" is not actually illegal, it's the "not telling revenue" part afterwards that is the problem.

MagicSean

GerardKeating wrote: »

Working "Cash in Hand" is not actually illegal, it's the "not telling revenue" part afterwards that is the problem.

It's very simple to do this online.

-Chris-

When you applied for your mortgage to be restructured, you would have been asked to complete an SFS. When you were completing this or otherwise answering their questions, how did you explain your income?

ScouseMouse

GerardKeating wrote: »

Working "Cash in Hand" is not actually illegal, it's the "not telling revenue" part afterwards that is the problem.

Funny man!

If you want to look at it that way, I pay my staff cash in a brown envelope (ok it also contains a pay slip and is properly declared)

You know what I mean, cash in hand is commonly perceived to be no tax or under the table.