Asking about Capital Acquisitions Tax (CAT)

Henry Ngo

Dear all,

In the citizens information website. https://www.citizensinformation.ie/en/money_and_tax/tax/capital_taxes/capital_acquisitions_tax.html?fbclid=IwAR0elvpFR8GnNhlM8_4m_LzXPIAfPU5XKlroZ1yY0l3c0GBLTot3QFV6Ogg

They said about an exemption from CAT: "The first €3,000 of the total value of all gifts received from any one person in any calendar year is exempt. So, you could receive a gift from several people in the same calendar year and the first €3,000 from each person is exempt from CAT. This exemption does not apply to inheritances".

They didn't say clearly that how many gifts and people I can receive in a year with CAT exemption.

It means that in a calendar year, I can receive 100 gifts from any 100 people with a gift from each person and €3,000 for each gift (with CAT exemption), can't I?

Thanks,

downtheroad

Yes €3,000 per person. But if you tried making a chain of transfers (e.g. your grandfather gifts you 3k, then he gifts your father 3k who in turn passes that 3k on to you) then it would be deemed to come from the original disponer.

Henry Ngo

I don't see any dis-allowance from Avenue about CAT exemption about a chain of transfers. Citizens can do anything which the law doesn't ban.

However, people will not be stupid as your example. That is the grandfather transfers the father, and the father will transfer to the son.

In the real, the grandfather will give cash to the father/mother and the father/mother will transfer to the son. The Revenue will don't have any evidence.

Jim2007

https://www.boards.ie/discussion/comment/120484394#Comment_120484394

You are not in a civil law jurisdiction though, so it's what the court adjudicates upon and that goes to the spirit of the law not the letter.

downtheroad

https://www.boards.ie/discussion/comment/120484394#Comment_120484394

Grandfather? I thought it's now changed to your cousin in one of your other threads on this same query, which you've been told many times is straight out tax evasion.

And yes you're right that example I gave is stupid, but your plan to have 100 people assemble in a house to collect €3k per person from your grandfather/cousin whoever it is, and then not be allowed to leave until they hand it over to you is much more sensible.

Henry Ngo

https://www.boards.ie/discussion/comment/120484464#Comment_120484464

I only want to CAT exemption, not Tax evasion. Finding loopholes in the law to avoiding taxes is legal. Many companies in the world often do that.

In my example, I will invite 100 friends to my house to drink tea/coffee in a year, not a day. It is possible to find 100 good friends and implement.

downtheroad

https://www.boards.ie/discussion/comment/120484996#Comment_120484996

What do your 100 friends get to carry out this transaction? A cup of tea? Sounds like a pretty useless deal to me.

relax carry on

https://www.boards.ie/discussion/comment/120484996#Comment_120484996

So assuming your bonkers plan works out and your 100 friends give you 3000 each ultimately came from your grandfather; are you going to hide the money under your mattress or lodge to a bank account or buy some asset for 300k in cash?

I'm not even going to get into anti avoidance measures which you seem blissfully unaware of.

DFB-D

https://www.boards.ie/discussion/comment/120484996#Comment_120484996

S8 Catcha - Connected gifts are treated as coming from the original disponer.

Generally, unless the threshold or relief is new, there are no obvious or workable ways to exploit it. It has more than likely been spotted and adjusted for in the legislation.

You could talk to a tax advisor to see how the gift could be structured internationally if you are not Irish Domiciled.

Henry Ngo

https://www.boards.ie/discussion/comment/120485676#Comment_120485676

My 100 friends will send E3K directly into my bank account as a gift with tax exemption. I can do anything with the E300K in my bank, e.g. buy properties or keep as saved money to get interest.

relax carry on

https://www.boards.ie/discussion/comment/120489900#Comment_120489900

Good luck with that plan. 😂

Henry Ngo

https://www.boards.ie/discussion/comment/120485447#Comment_120485447

My friends will know that I will help them in the future as they need. My help is valuable, e.g. an advice or a reference,...

Henry Ngo

https://www.boards.ie/discussion/comment/120486850#Comment_120486850

Yes, we should not give Revenue know that the money is the connected gifts. My father will give cash to my friends. Revenue will not have any evidence about the connected gifts.

DFB-D

https://www.boards.ie/discussion/comment/120489921#Comment_120489921

They don't need evidence, that is your burden..

Anyway you are admitting the intention is tax evasion now, this is not acceptable.

SureYWouldntYa

https://www.boards.ie/discussion/comment/120489921#Comment_120489921

And how will your father get his hands on €300k in cash? That's not practical in the slightest

A withdrawal by him of €300k in cash, followed by 100 €3k lodgements to your bank account leaves a fairly easy trail

Dslatt

Tax avoidance is encourage and even helped by the revenue, tax evasion is probably the greatest crime in the eys of the Irish government, good luck to you!

Xander10

The OP is just a troll. Best ignored.