Gift tax/Revenue

5620SB

Can anyone please advise.

I was gifted money over 6 years ago by a neighbour to help with completion of house build. I did not pay any gift tax on this at the time and the sum is over 25k. I have since got into a feud with this guys nephew and he may report it to revenue.

If so, will they allow me to come to a payment arrangement ( nephew got annoyed after the neighbour passed away, was expecting to receive more money from his will but realised he had gifted it)

Will I be a court hearing or how does revenue operate once something is reported, should I contact them direct myself

Thanks in advance

nuac

Mod
Sorry, legal advice not supplied on this forum.
Leaving open for general discussion subject to above rule

davindub

Generally you would make a unprompted qualifying disclosure and have revenue calculate the penalties.

But an accountant can calculate for you before making the disclosure, there are personal exemptions and gift limits that may reduce the gift amount. Interest is circa 8% pa and then whatever penalties are to be added on.

Victor

Have a look at https://www.revenue.ie/en/gains-gifts-and-inheritance/cat-thresholds-rates-and-aggregation-rules/index.aspx especially the CAT thresholds.

Mr. Incognito

Surely a neighbour didnt hand you 25K gratis.

Was it not a loan? or was it a loan you didnt repay and when the neighbour died now claim it was a gift- they are now threatening to report you to revenue if you try to claim it was a gift?

Sounds fishy.

If it was a gift, as you claim, then yes. Substantial interest and penalties would accrue.

SteM

Mr. Incognito wrote: »

Surely a neighbour didnt hand you 25K gratis.

Was it not a loan? or was it a loan you didnt repay and when the neighbour died now claim it was a gift- they are now threatening to report you to revenue if you try to claim it was a gift?

Sounds fishy.

If it was a gift, as you claim, then yes. Substantial interest and penalties would accrue.

Reads to me like the OP is a builder or labourer and finished off work on the neighbour's house. The €25k was a 'gift' ie payment for a nixer.

Mr. Incognito

SteM wrote: »

Reads to me like the OP is a builder or labourer and finished off work on the neighbour's house. The €25k was a 'gift' ie payment for a nixer.

I was gifted money over 6 years ago by a neighbour to help with completion of house build.

I read it that he received 25K to help him build his own house not the neighbours but the OP can clarify.

SteM

Mr. Incognito wrote: »

I read it that he received 25K to help him build his own house not the neighbours but the OP can clarify.

Oh, you're probably right.

5620SB

As stated is first post, this was a gift, my husband had suddenly passed away wen we were building our home. The neighbour lived with my parents, they cared for him for years and he wanted to help me out. It was not a loan, if it were it would have been paid back and I wouldn't be in this situation ..

whippet

5620SB wrote: »

As stated is first post, this was a gift, my husband had suddenly passed away wen we were building our home. The neighbour lived with my parents, they cared for him for years and he wanted to help me out. It was not a loan, if it were it would have been paid back and I wouldn't be in this situation ..

It’s a gift alright .. and as such is subject to taxation. I know we are great in this country for no declaring stuff to revenue .. but usually Mr Revenue finds out eventually and interest and penalties are punitive as a method of trying to ensure compliance in the first place.

This neighbour of yours could easily make trouble for you and if you had declared the gift when received you wouldn’t be in this position.

hullaballoo

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