Gift Tax

PaulGump

If I was to receive €20k today from one of my parents in cash, which I would then lodge against a variable rate Mortgage , can anyone answer the following questions:

1. If i could convince my parents not to give me cash, Can you get a bank draft made out to 'cash' ?
2. Can I cruise into my bank and Lodge €20k wod of cash against my mortgage? What questions am I likely to be asked?
3. While I am aware I can receive €250k in my lifetime, do I need to disclose this receipt to Revenue?
4. Do my parents have any disclosures to make?


Cheers
Gump

Daxve

1. If i could convince my parents not to give me cash, Can you get a bank draft made out to 'cash' ?

Don't know don't think so

2. Can I cruise into my bank and Lodge €20k wod of cash against my mortgage? What questions am I likely to be asked?

The bank will certainly ask where the money came from tell them it's a gift from your parents which it is.

3. While I am aware I can receive €250k in my lifetime, do I need to disclose this receipt to Revenue?

You only need to tell Revenue if you receive over 80% of the threshold (€200,000). This a lifetime threshold so any gifts already received need to be added to this gift and if you receive any gifts or inheritance in future you will have to add on this gift.

4. Do my parents have any disclosures to make?

No your parents don't need to do anything


Don't forget the first €3,000 gifted to you each year is exempt from gift tax.

Gift Tax leaflet http://www.revenue.ie/en/tax/cat/leaflets/cat1.html

tenchi-fan

1. No
2. Yes
3. No
4. No

Only if the bank are suspicious of the source of funds (money laundering, drug dealing, tax evasion) are they obliged to report anything to revenue.

Marcusm

tenchi-fan wrote: »

1. No
2. Yes
3. No
4. No

Only if the bank are suspicious of the source of funds (money laundering, drug dealing, tax evasion) are they obliged to report anything to revenue.

If you walk into the bank with 20k in cash and you don't volunteer the source - don't expect the bank staff to ask you many questions but do expect them to file a suspicious transaction report with the authorities. They may not probe you as to warn you of the likelihood of making a suspicious transaction report can result in the bank official committing an offence (colloquially referred to as tipping off).

Short answer is don't draw attention to yourself in this manner.

tenchi-fan

Marcusm wrote: »

Short answer is don't draw attention to yourself in this manner.

To me it's a fairly suspicious transaction. However, it only becomes a problem if you have something to hide.

Op's main goal seems to be disguising the fact the money came from his parents, possibly due to concerns that he will be hit with a CAT bill. This doesn't make sense as a gift from parents is the only way he can receive such a large amount of money tax-free.

Personally, I don't see why they don't just EFT the money to him. Good luck trying to convince the revenue commissioners in 15 years time that the €20k cash lodgement came from parents and not undeclared income.

Marcusm

tenchi-fan wrote: »

To me it's a fairly suspicious transaction. However, it only becomes a problem if you have something to hide.

Op's main goal seems to be disguising the fact the money came from his parents, possibly due to concerns that he will be hit with a CAT bill. This doesn't make sense as a gift from parents is the only way he can receive such a large amount of money tax-free.

Personally, I don't see why they don't just EFT the money to him. Good luck trying to convince the revenue commissioners in 15 years time that the €20k cash lodgement came from parents and not undeclared income.

I doubt you'd have to wait 15 years as suspicious transaction reports are, by law, submitted to the Revenue and Gardai.

Atlantic Dawn

If you lodge €15,000 or over in cash the bank have to report it under money laundering legislation. Best way would be to have your folks transfer it electronically and that way it's covered should there ever be a problem, if it's in cash perhaps get each parent to lodge €10k in cash in seperate accounts and then EFT them in to yours.

mathepac

Marcusm wrote: »

If you walk into the bank with 20k in cash ... expect them to file a suspicious transaction report with the authorities. ...

Atlantic Dawn wrote: »

If you lodge €15,000 or over in cash the bank have to report it under money laundering legislation. ...

It's not cash, it's a bank draft OP mentioned. His question was if it's possible to have a draft made out to "Cash" as the payee.

tenchi-fan

Marcusm wrote: »

I doubt you'd have to wait 15 years as suspicious transaction reports are, by law, submitted to the Revenue and Gardai.

Look, I did about a dozen money laundering courses. I think you're missing my point.

At present, it will be easy to prove the source of funds.

In years to come revenue can still query suspicious transactions. Without a paper trail, good luck explaining them. "It was a gift from my parents" may not cut it.

Anyway, my advice to the op is to get a cheque rather than cash.

barneystinson

tenchi-fan wrote: »

Look, I did about a dozen money laundering courses. I think you're missing my point.

At present, it will be easy to prove the source of funds.

In years to come revenue can still query suspicious transactions. Without a paper trail, good luck explaining them. "It was a gift from my parents" may not cut it.

Anyway, my advice to the op is to get a cheque rather than cash.

+1million

If the cash / draft / fabergé egg... is from a legitimate and taxed source, then the transaction should be made in the most transparent and easily traced way possible.

That way if it's ever queried, the source can be easily shown.

It's not rocket science lads - if there's nothing to hide, don't be acting shifty!