Depositing large cheque - will there be issue?

Jonathan223

Hi,

I need to deposit cheque of €70'000+ into my personal bank account.
It's a settlement money and is tax exempt.

I am just wondering will there be any issue in bank?
Will Revenue be notified and will contact me or will bank automatically deduct CGT and I will need to recover it from Revenue or how does this work, I assume I need some sort of proof of what it is for?

Any advice appreciated.

whomitconcerns

Revenue will be notified. So you should get your tax sorted or ready to be sorted.

Jonathan223

whomitconcerns wrote: »

Revenue will be notified. So you should get your tax sorted or ready to be sorted.

What does that involve?
Can I just declare income on Revenue website under "Untaxed income arising in the State"?

colm_c

Jonathan223 wrote: »

What does that involve?
Can I just declare income on Revenue website under "Untaxed income arising in the State"?

Once everything is above board you will be fine.

Just have proof of where the money came from.

I would not register anything on revenue website.

If you are really worried, call Revenue, they are usually very helpful.

Jonathan223

I had letter of proof of funds just in case.
They didn't ask anything at all, just deposited it and asked for reference note/comment and that's it.

Should I expect contact from Revenue at some point or something?

Toots

Very unlikely. The bank are required to report out-of-course large lodgements, so Revenue will be notified but the chances of follow up are low. Just hold on to paperwork etc relating to it in case you ever get an audit, so you can show there's no tax due on it.

killbillvol2

Jonathan223 wrote: »

I had letter of proof of funds just in case.
They didn't ask anything at all, just deposited it and asked for reference note/comment and that's it.

Should I expect contact from Revenue at some point or something?

The bank will probably contact you in a couple of days/weeks to ascertain source of funds. Probably a phone call.

GrumpyMe

killbillvol2 wrote: »

The bank will probably contact you in a couple of days/weeks to ascertain source of funds. Probably a phone call.

Would you discuss your financial business with an unknown banker over the phone?:eek:


I don't think so...

coylemj

killbillvol2 wrote: »

The bank will probably contact you in a couple of days/weeks to ascertain source of funds. Probably a phone call.

More likely one of their sales people, sorry I mean a 'financial consultant' will phone you to sell you one of their investment products.

If they ask you about the source of the money, tell them it's none of their business.

killbillvol2

GrumpyMe wrote: »

Would you discuss your financial business with an unknown banker over the phone?:eek:


I don't think so...

They ask you to call them. I presume you know how to contact your bank?

Heres Johnny

coylemj wrote: »

More likely one of their sales people, sorry I mean a 'financial consultant' will phone you to sell you one of their investment products.

If they ask you about the source of the money, tell them it's none of their business.

You can't tell them it's none of their business. They are bound my anti money laundering laws. You can say it on boards, but not to bank/revenue

I regularly deposit large business cheques and it's never questioned but company has been with same bank for 40 years.

Heres Johnny

coylemj wrote: »

More likely one of their sales people, sorry I mean a 'financial consultant' will phone you to sell you one of their investment products.

If they ask you about the source of the money, tell them it's none of their business.

You can't tell them it's none of their business. They are bound my anti money laundering laws. You can say it on boards, but not to bank/revenue

I regularly deposit large business cheques and it's never questioned but company has been with same bank for 40 years.

coylemj

Heres Johnny wrote: »

You can't tell them it's none of their business. They are bound my anti money laundering laws. You can say it on boards, but not to bank/revenue

I never suggested that the OP tell revenue to mind ther own business.

If the bank informs revenue of the lodgement of a large cheque, surely that fulfills their obligation under anti-money laundering regulations? Why do they need to contact the customer to ask where the money came from - isn't that the job of revenue?

GrumpyMe

Heres Johnny wrote: »

You can't tell them it's none of their business. They are bound my anti money laundering laws. You can say it on boards, but not to bank/revenue

I regularly deposit large business cheques and it's never questioned but company has been with same bank for 40 years.

Of course you can say it to a bank.


They could retaliate but you could say it!

killbillvol2

coylemj wrote: »

More likely one of their sales people, sorry I mean a 'financial consultant' will phone you to sell you one of their investment products.

If they ask you about the source of the money, tell them it's none of their business.

When you make a large lodgement the bank will contact you to ask the source of the funds. This is not a hypothetical situation. It's what they do because they have to.

Jim2007

coylemj wrote: »

I never suggested that the OP tell revenue to mind ther own business.

If the bank informs revenue of the lodgement of a large cheque, surely that fulfills their obligation under anti-money laundering regulations? Why do they need to contact the customer to ask where the money came from - isn't that the job of revenue?

Tax avoidance and MLA are two entirely different things. MLA through escalation will eventually be investigate by the Garda if unresolved - it is a criminal offence.

phormium

The bank will firstly ask the customer about the source of the funds, only if they are not happy with the answer will the Money Laundering Reporting Officer report it to Gardai/Revenue. That could happen for any amount of a lodgement that is outside the norm for the account in question.

368100

coylemj wrote: »

I never suggested that the OP tell revenue to mind ther own business.

If the bank informs revenue of the lodgement of a large cheque, surely that fulfills their obligation under anti-money laundering regulations? Why do they need to contact the customer to ask where the money came from - isn't that the job of revenue?

Source of funds is a requirement to capture under Anti Money Laundering Legislation

Darc19

phormium wrote: »

The bank will firstly ask the customer about the source of the funds, only if they are not happy with the answer will the Money Laundering Reporting Officer report it to Gardai/Revenue. That could happen for any amount of a lodgement that is outside the norm for the account in question.

Precisely the above.

A note will be attached to the lodgement and once the bank is happy, it goes no further.

The note is just in case they get an audit.

70k is not a huge amount

Remember thousands of people got tracker mortgage redress in the past few years and many were in the region of €100,000 (including mine)

Spanish Eyes

Just curious as to why this large sum was settled by cheque and not electronically transferred.

Maybe it is from a jurisdiction not covered by IBAN or something.

Revenue may be notified but if it is all kosher, why worry? You say it is tax exempt, but you would probably need to file a return to claim the exemption when the time comes anyway.

Enjoy the few bob.

Darc19

Spanish Eyes wrote: »

Just curious as to why this large sum was settled by cheque and not electronically transferred.

Maybe it is from a jurisdiction not covered by IBAN or something.

Revenue may be notified but if it is all kosher, why worry? You say it is tax exempt, but you would probably need to file a return to claim the exemption when the time comes anyway.

Enjoy the few bob.

Cheque is still the preferred settlement format for some insurance companies and even banks

beachhead

Keep all paperwork relating to the funds received.Your bank will see where the money has come from and may not question it's source/reason.The firm/individual/institution paying you the funds will have informed the Revenue that is, if, the asked you for your PRSI number.If,they did not you might want to ask Revenue where you stand regarding tax.