Gift for deposit

marko99

Claw Hammer wrote:

The banks are obliged to question any lodgement over €1.5k.

I'm very surprised to hear this! I regularly lodge sums of well over €10k and have never once been asked any questions. What's the source of your information please?

antix80

Witcher wrote: »

In the two banks I've worked in no questions were asked for 10k or under, a cent over that and I had to ask and note it, no reporting was done unless there were several lodgements of similar amounts and no viable source of that amount of cash.

Not true. Tellers have responsibility to report to the mlo any suspicious transactions. It may be a disclosure from the customer who isn't clued in-e.g "look i used to do a bit of work on the side so this draft is from a sterling account in my wife's name".. Doesn't happen as much as it used to but some customers are oblivious as to reporting obligations.

The bank can also run reports of suspicious transactions, like ones just under a limit, or where a lodgment is matched by an immediate transfer out of the same amount.

Op's query isnt about money laundering though. I think people are confusing the 2 issues.

irishbabe52

When I say no tax issues, I mean that it falls below both the thresholds for my father or sisters giving it to me, and unless one of us wins the lotto, we'll never exceed those limits either 😂
I've told the bank I'm getting a gift of 10k, and there's no issue there, they just want a letter saying it's a gift.
My dad doesn't want to sign the letter but both my sisters are happy to give me a letter.
My only concern was the fact that I was going to have to lodge 10k cash into the bank and would I be questioned at that point where it came from, as I really just want to leave my dad out if the whole thing!

irishbabe52

I should say that my account is with one bank and the mortgage is with another so all the mortgage lender will see is the 10k going into the bank.
Will my bank want to know where it came from when I lodge it, is the main question i suppose!
It's mad really, if I was up to anything dishonest I wouldn't be half as concerned about the whole thing!!

lulu1

My father in law was 90 and was the same about banks.

A few years after our punt was changed to euro he gave us a similar amount in old money that was no longer in use.

We were in a dilemma as to what to do about it because it was too much to lose

So we took it to the bank and told them we did a job for a elderly gentleman and he paid us with old notes. They got it changed for us and asked no questions

Brussels Sprout

Brussels Sprout wrote: »

Just to point out that the above isn't necessarily true. There are no tax implications for your father if he wants to keep the money himself, true. However, as soon as he tries to give the money to other people then capital acquisition tax (CAT) becomes relevant.

As others have pointed out there are lifetime tax-free thresholds, depending on the relationship and time of the gifts. See here for details:

https://www.revenue.ie/en/gains-gifts-and-inheritance/cat-thresholds-rates-and-aggregation-rules/cat-thresholds.aspx

You can make an online submission via revenue.ie to register the gift if you want to do it all properly. You'd need your father's PPS number, which given what you have said about him might be tricky to obtain.

There is no requirement to declare unless the gift is 80% or more of the applicable threashold so in the ops case he would need to get 248k from his father before a declaration was necessary.

Brussels Sprout

Carl Shy Extinguisher wrote: »

There is no requirement to declare unless the gift is 80% or more of the applicable threashold so in the ops case he would need to get 248k from his father before a declaration was necessary.

That surely can't be right as it would leave a massive loophole open. People could just exchange money in allotments of less than 80% of the threshold repeatedly and avoid CAT that way.

How else would Revenue be able to keep track of your aggregate total if you didn't declare it?

Brussels Sprout

Brussels Sprout wrote: »

That surely can't be right as it would leave a massive loophole open. People could just exchange money in allotments of less than 80% of the threshold repeatedly and avoid CAT that way.

How else would Revenue be able to keep track of your aggregate total if you didn't declare it?

The 80% rule is clearly stated by revenue themselves: https://www.revenue.ie/en/gains-gifts-and-inheritance/completing-your-gift-or-inheritance-tax-return-it38/how-do-you-know-if-you-should-file.aspx

Revenue don’t keep track of gifts of inheritances, you could easily exceed a threshold, don’t declare it and pay no tax and it would never be known to revenue and you may get away with it but if you were ever audited it would then come to light very quickly and you would be caught out very fast.

My own opinion is CAT should be abolished completely for any gifts/inheritances between any family members as it’s a real bad bas*ard of a tax.

Claw Hammer

irishbabe52 wrote: »

I should say that my account is with one bank and the mortgage is with another so all the mortgage lender will see is the 10k going into the bank.
Will my bank want to know where it came from when I lodge it, is the main question i suppose!
It's mad really, if I was up to anything dishonest I wouldn't be half as concerned about the whole thing!!

If the mortgage lender sees 10k going into the bank they will ask where it came from. They will want statements. The bank you lodge it to, if it is in cash will certainly query it.
Given your comments i now don't believe you story. there ae 3 scenarios:
1. you are telling the truth.
2. your earned money you never declared and kept in cash.
3. Your father earned money he never declared and kept in cash.

It would thing the chances of the 1st at about 10%.