Is it illegal for someone else to pay your tax bill?

98-00

Is it illegal for someone else to pay your tax bill?

Say I owe €10,000 to revenue and I don't have it, if some generous citizen or friend offers to pay that €10,000 would they be allowed do it?

Would capital acquisition tax have to be paid on it as the €10,000 is a gift, meaning the do-good-er would actually have to pay somewhere about €15,000, to cover my tax bill as well as the CAT I would have to pay on getting a cash gift.

As far as I know I don't owe revenue anything, I was just curious about the system.

mystic86

98-00 wrote: »

Is it illegal for someone else to pay your tax bill?

Say I owe €10,000 to revenue and I don't have it, if some generous citizen or friend offers to pay that €10,000 would they be allowed do it?

Would capital acquisition tax have to be paid on it as the €10,000 is a gift, meaning the do-good-er would actually have to pay somewhere about €15,000, to cover my tax bill as well as the CAT I would have to pay on getting a cash gift.

As far as I know I don't owe revenue anything, I was just curious about the system.

Wouldn't it be 33% on an amount in excess of €16,250? (If the person is only a friend)

98-00

mystic86 wrote: »

Wouldn't it be 33% on an amount in excess of €16,250? (If the person is only a friend)

Yes, I think your right. That would go towards the life time allowance on group C, isn't that right.

Atlantic Dawn

Why not play them in poker and win, then use that money to pay it?

98-00

Atlantic Dawn wrote: »

Why not play them in poker and win, then use that money to pay it?

I don't play but sounds like it should work.

barneystinson

Unless you and they have a track record in playing very high stakes poker, I doubt that'd wash.

Revenue: How did you suddenly come up with this money to pay your tax bill?

You: oh I won it playing poker

Revenue: WTF, how did you manage that, seeing as you're otherwise skint.

(Revenue then think, logically, that there's more to this and maybe there's more money floating around somewhere, untaxed...)

Pawwed Rig

barneystinson wrote: »

Revenue: How did you suddenly come up with this money to pay your tax bill?

They would assume that you used some of your taxable income to pay the tax. Like everyone else in the State.

Atlantic Dawn

barneystinson wrote: »

Unless you and they have a track record in playing very high stakes poker, I doubt that'd wash.

Revenue: How did you suddenly come up with this money to pay your tax bill?

You: oh I won it playing poker

Revenue: WTF, how did you manage that, seeing as you're otherwise skint.

(Revenue then think, logically, that there's more to this and maybe there's more money floating around somewhere, untaxed...)

All you need is a chip and a chair

barneystinson

Pawwed Rig wrote: »

They would assume that you used some of your taxable income to pay the tax. Like everyone else in the State.

I'm thinking more in the sphere of an audit liability. If it's just a normal run of the mill pay & file scenario, then as you say above.