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Paypal and Revenue

  • 21-01-2019 6:33pm
    #1
    Sureal
    Closed Accounts Posts: 39 ✭


    Hello. If you earn an income through paypal you have to self declare the tax you owe and sort that all out. I'm just wondering do revenue have a way of checking if you're paying the correct tax on earnings? Do paypal report earning to the revenue?


Comments

  • #2
    Calahonda52
    Registered Users, Registered Users 2 Posts: 12,564 ✭✭✭✭Calahonda52


    How do you earn money through Paypal: is it not a payment system so its the guys who make you the payments through Paypal are the guys to worry about.
    They are not like AirBnB, or are they?

    “I can’t pay my staff or mortgage with instagram likes”.



  • #3
    Sureal
    Closed Accounts Posts: 39 ✭Sureal


    I'm not sure. I don't really know how Airbnb works. Can't people get paid selling things through paypal? Also, some companies pay through paypal I think. I've googled, there really isn't a lot of information on how the tax system works in this case.


  • #4
    lsjmhar
    Closed Accounts Posts: 399 ✭✭lsjmhar


    Talk to an accountant. They will sort out what you owe. Keep some money aside every year to pay accountant. They will advise you on how to better structure your income, e.g. Tax, write-offs, pension,etc.


  • #5
    relax carry on
    Registered Users, Registered Users 2 Posts: 4,085 ✭✭✭relax carry on


    Sureal wrote: »
    I'm not sure. I don't really know how Airbnb works. Can't people get paid selling things through paypal? Also, some companies pay through paypal I think. I've googled, there really isn't a lot of information on how the tax system works in this case.

    It's quite simple. Are you trading/earning additional non PAYE income? If you are then you must declare it on a form 12 or form 11 tax return. How you are paid isn't really relevant. You earned the income so it must be declared.

    https://www.revenue.ie/en/additional-incomes/is-your-extra-income-taxable/index.aspx


  • #6
    Sureal
    Closed Accounts Posts: 39 ✭Sureal


    relax carry on wrote: »
    It's quite simple. Are you trading/earning additional non PAYE income? If you are then you must declare it on a form 12 or form 11 tax return. How you are paid isn't really relevant. You earned the income so it must be declared.

    https://www.revenue.ie/en/additional-incomes/is-your-extra-income-taxable/index.aspx

    No, I'm not earning any additional income. This thread isn't about me. I know someone in this position. It's not someone I'm that friendly with, actually the opposite. I'm just wondering how they can get away with being paid through paypal? Do paypal not report earnings to revenue?


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  • #7
    Ninthlife
    Registered Users, Registered Users 2 Posts: 2,312 ✭✭✭Ninthlife


    Sureal wrote: »
    No, I'm not earning any additional income. This thread isn't about me. I know someone in this position. It's not someone I'm that friendly with, actually the opposite. I'm just wondering how they can get away with being paid through paypal? Do paypal not report earnings to revenue?

    Is it Air B&B they are getting money from


  • #8
    Sureal
    Closed Accounts Posts: 39 ✭Sureal


    Ninthlife wrote: »
    Is it Air B&B they are getting money from

    No, they are getting paid through paypal! It's not airbnb they are doing. Why, does airbnb not get reported either?


  • #9
    Ninthlife
    Registered Users, Registered Users 2 Posts: 2,312 ✭✭✭Ninthlife


    Sureal wrote: »
    No, they are getting paid through paypal! It's not airbnb they are doing. Why, does airbnb not get reported either?

    Paid through paypal for what though? Paypal is just a facility to receive/pay money. What are they being paid for

    Air B&B and similar short term rental sites do provide Revenue with info of those who receive payments


  • #10
    Sureal
    Closed Accounts Posts: 39 ✭Sureal


    Ninthlife wrote: »
    Paid through paypal for what though? Paypal is just a facility to receive/pay money. What are they being paid for

    They have a few things on the go. A kind of a business and another thing with an overseas company. Both get paid through paypal. They don't pay tax, they told me directly. How are they getting away with it is what I want to know?


  • #11
    Eric Cartman
    Registered Users, Registered Users 2 Posts: 26,280 ✭✭✭✭Eric Cartman


    Sureal wrote: »
    They have a few things on the go. A kind of a business and another thing with an overseas company. Both get paid through paypal. They don't pay tax, they told me directly. How are they getting away with it is what I want to know?

    it should be declared as income regardless, theyll need to fill out a form 11 and declare the income. They should really talk to an accountant.

    If they make money being an 'influencer' or selling pictures of themselves then please report them OP, sick of those people thinking that they don't have to declare that.


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  • #12
    relax carry on
    Registered Users, Registered Users 2 Posts: 4,085 ✭✭✭relax carry on


    Sureal wrote: »
    No, they are getting paid through paypal! It's not airbnb they are doing. Why, does airbnb not get reported either?

    If you believe someone isn't reporting taxable income please advise Revenue through the portal in the link and allow them to investigate.

    https://www.revenue.ie/en/corporate/assist-us/reporting-shadow-economy-activity/reporting.aspx


  • #13
    Sureal
    Closed Accounts Posts: 39 ✭Sureal


    Eric Cartman wrote: »
    it should be declared as income regardless, theyll need to fill out a form 11 and declare the income. They should really talk to an accountant.

    If they make money being an 'influencer' or selling pictures of themselves then please report them OP, sick of those people thinking that they don't have to declare that.

    Who do I report them to? The revenue? Will they just investigate on an anonymous tip? Or will I have to give my name?


  • #14
    Ninthlife
    Registered Users, Registered Users 2 Posts: 2,312 ✭✭✭Ninthlife


    Sureal wrote: »
    Who do I report them to? The revenue? Will they just investigate on an anonymous tip? Or will I have to give my name?


    No need to provide your own details just as much info regarding the individual


  • #15
    ED E
    Registered Users, Registered Users 2 Posts: 36,169 ✭✭✭✭ED E


    Sureal wrote: »
    Who do I report them to? The revenue? Will they just investigate on an anonymous tip? Or will I have to give my name?

    https://www.revenue.ie/en/corporate/assist-us/reporting-shadow-economy-activity/index.aspx

    You can just report it, Revenue will do the rest.


    Just because they havent caught them yet doesnt meant they wont get a letter a few years down the road asking for a big underpayment.


  • #16
    Sureal
    Closed Accounts Posts: 39 ✭Sureal


    relax carry on wrote: »
    If you believe someone isn't reporting taxable income please advise Revenue through the portal in the link and allow them to investigate.

    https://www.revenue.ie/en/corporate/assist-us/reporting-shadow-economy-activity/reporting.aspx

    Thanks for the link. It's not just a case of giving their name and address it seems. I don't have much other proof apart from what I was told by the person and the fact that they have assets that seem far beyond their wage level!


  • #17
    Gonad
    Registered Users Posts: 653 ✭✭✭Gonad


    Www.mindyourownbusiness.com


  • #18
    Sureal
    Closed Accounts Posts: 39 ✭Sureal


    ED E wrote: »
    https://www.revenue.ie/en/corporate/assist-us/reporting-shadow-economy-activity/index.aspx

    You can just report it, Revenue will do the rest.


    Just because they havent caught them yet doesnt meant they wont get a letter a few years down the road asking for a big underpayment.

    Oh so paypal will eventually report them? Or maybe there's a limit before paypal will report?


  • #19
    relax carry on
    Registered Users, Registered Users 2 Posts: 4,085 ✭✭✭relax carry on


    Sureal wrote: »
    Thanks for the link. It's not just a case of giving their name and address it seems. I don't have much other proof apart from what I was told by the person and the fact that they have assets that seem far beyond their wage level!

    Give as much info as you can. All reports have to be investigated. That however doesn't mean Revenue will think there is actually a risk after reviewing all information available to them. However, sometimes the smallest piece of information can add to a nearly complete picture.


  • #20
    Dakotabigone
    Site Banned Posts: 512 ✭✭✭Dakotabigone


    The Revenue will bury it deep, it’s not just the undeclared tax it’s the fines etc that are the real killer.


  • #21
    ahnowbrowncow
    Registered Users, Registered Users 2 Posts: 2,584 ✭✭✭ahnowbrowncow


    Sureal wrote: »
    Oh so paypal will eventually report them? Or maybe there's a limit before paypal will report?


    Or whoever is paying them submits an invoice, bank statements etc. to Revenue or even gets audited by Revenue and they check to see where the money is going.

    There's always a trail.


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  • #22
    Sureal
    Closed Accounts Posts: 39 ✭Sureal


    relax carry on wrote: »
    Give as much info as you can. All reports have to be investigated. That however doesn't mean Revenue will think there is actually a risk after reviewing all information available to them. However, sometimes the smallest piece of information can add to a nearly complete picture.

    Ok, I think I will. It does seem a bit vindictive though. They aren't a very nice person but.....I don't know. I'll have to think about it.


  • #23
    Sureal
    Closed Accounts Posts: 39 ✭Sureal


    Dakotabigone wrote: »
    The Revenue will bury it deep, it’s not just the undeclared tax it’s the fines etc that are the real killer.

    I don't want to destroy them!


  • #24
    Gonad
    Registered Users Posts: 653 ✭✭✭Gonad


    Sureal wrote: »
    Ok, I think I will. It does seem a bit vindictive though. They aren't a very nice person but.....I don't know. I'll have to think about it.

    Don’t do it . How could you look yourself in the mirror ?

    Let peope get in with it and earn their money however they choose .


  • #25
    Sureal
    Closed Accounts Posts: 39 ✭Sureal


    ahnowbrowncow wrote: »
    Or whoever is paying them submits an invoice, bank statements etc. to Revenue or even gets audited by Revenue and they check to see where the money is going.

    There's always a trail.

    Ah ok. It's bound to happen sometime.


  • #26
    Dakotabigone
    Site Banned Posts: 512 ✭✭✭Dakotabigone


    Sureal wrote: »
    I don't want to destroy them!

    Revenue don’t do things by half’s.


  • #27
    Sureal
    Closed Accounts Posts: 39 ✭Sureal


    Gonad wrote: »
    Don’t do it . How could you look yourself in the mirror ?

    Let peope get in with it and earn their money however they choose .

    Maybe. I'll just let them get found out themselves.


  • #28
    ahnowbrowncow
    Registered Users, Registered Users 2 Posts: 2,584 ✭✭✭ahnowbrowncow


    Sureal wrote: »
    Ah ok. It's bound to happen sometime.


    Yes but it's not guaranteed and an anonymous tip can send them in the right direction earlier.


  • #29
    Gonad
    Registered Users Posts: 653 ✭✭✭Gonad


    Sureal wrote: »
    Maybe. I'll just let them get found out themselves.

    Look after yourself mate.

    Not going to bring you any luck by doing it. I know someone in same position. Making a killing online selling stuff and not declaring it . I would never dream of telling anyone. Let them figure it out themselves


  • #30
    Sureal
    Closed Accounts Posts: 39 ✭Sureal


    Dakotabigone wrote: »
    Revenue don’t do things by half’s.

    What are we talking here? They'll have to pay back the tax they owe and how much of a fine on top?


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  • #31
    Sureal
    Closed Accounts Posts: 39 ✭Sureal


    Gonad wrote: »
    Look after yourself mate.

    Not going to bring you any luck by doing it. I know someone in same position. Making a killing online selling stuff and not declaring it . I would never dream of telling anyone. Let them figure it out themselves

    Are they not worried about getting found out? I can't believe paypal and the like don't report these earnings!


  • #32
    vargoo
    Registered Users Posts: 737 ✭✭✭vargoo


    We are so quick to screw each other over, it's priceless.


  • #33
    Sureal
    Closed Accounts Posts: 39 ✭Sureal


    vargoo wrote: »
    We are so quick to screw each other over, it's priceless.

    I'm leaning against it now. I thought it'd be just pay the tax you owe and stop doing what you're doing.


  • #34
    Gonad
    Registered Users Posts: 653 ✭✭✭Gonad


    Sureal wrote: »
    Are they not worried about getting found out? I can't believe paypal and the like don't report these earnings!

    I’m sure they are worried but that’s their business tbh. The way I see it they are not selling drugs or harming anyone . They are making a few quid on the side and let them at it .


  • #35
    Tow
    Registered Users, Registered Users 2 Posts: 8,093 ✭✭✭Tow


    Sureal wrote: »
    What are we talking here? They'll have to pay back the tax they owe and how much of a fine on top?

    As a very general rule X3. So 1K in back tax and another 2k in penalties and interest = 3k.

    When is the money (including lost growth) Michael Noonan took in the Pension Levy going to be paid back?



  • #36
    ahnowbrowncow
    Registered Users, Registered Users 2 Posts: 2,584 ✭✭✭ahnowbrowncow


    Tow wrote: »
    As a very general rule X3. So 1K in back tax and another 2k in penalties and interest = 3k.

    You're miles off with that.

    Just a quick look at the 2018's list of defaulters shows that penalties and interest were the following percentage of tax owed.

    Q3 78.8%
    Q2 65.6%
    Q1 74.7%

    Plus these are from the publicised list of defaulters so the penalties and interest are more going to be higher than the non publicised ones as the penalty has to be over a certain percentage for it to be published.


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  • #37
    Calahonda52
    Registered Users, Registered Users 2 Posts: 12,564 ✭✭✭✭Calahonda52


    vargoo wrote: »
    We are so quick to screw each other over, it's priceless.

    Its theft, same as SWO theft

    “I can’t pay my staff or mortgage with instagram likes”.



  • #38
    [Deleted User]
    Posts: 3,656 ✭✭✭ [Deleted User]


    Calahonda52 wrote: »
    Its theft, same as SWO theft

    Strictly speaking its not "theft"..... its just "not paying". (the difference between taking and giving)
    The person is not stealing or taking anything as would happen with Social Welfare fraud & claiming a benefit you are not entitled to.

    So its not stealing/theft. I'm not condoning this behaviour, just pointing out the difference between stealing money that is not yours and withholding money you earned (illegally or not).


  • #39
    Calahonda52
    Registered Users, Registered Users 2 Posts: 12,564 ✭✭✭✭Calahonda52


    Deleted User wrote: »
    Strictly speaking its not "theft"..... its just "not paying". (the difference between taking and giving)
    The person is not stealing or taking anything as would happen with Social Welfare fraud & claiming a benefit you are not entitled to.

    So its not stealing/theft. I'm not condoning this behaviour, just pointing out the difference between stealing money that is not yours and withholding money you earned (illegally or not).

    https://en.wikipedia.org/wiki/Theft

    By withholding taxes and then availing of services for which you have not paid your share for is theft.

    “I can’t pay my staff or mortgage with instagram likes”.



  • #40
    [Deleted User]
    Posts: 5,121 ✭✭✭ [Deleted User]


    vargoo wrote: »
    We are so quick to screw each other over, it's priceless.
    The person they are doing over is the rest of us who pick up the slack.

    There is no indication that this is small money on the side. It could be IT contracting or it could be selling junk from the attic.

    A quick search doesn't tell me if this information is shared automatically here. It is in the US after a certain point.


  • #41
    vargoo
    Registered Users Posts: 737 ✭✭✭vargoo


    Deleted User wrote: »

    A quick search doesn't tell me if this information is shared automatically here. It is in the US after a certain point.

    Same here, paypal report it. Don't know at what amount but 100% they do.


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  • #42
    scheister
    Registered Users, Registered Users 2 Posts: 1,309 ✭✭✭scheister


    I would imagine it will keep out at some point depending on the size of the income.

    Revenue at times will look across taxes to see if items make sense. So if they buy a car worth 50k and both are only on SW. Revenue can come and ask where the money came from.


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