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Tedc
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Tedc is offline
Berkshire, UK
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29-02-2020, 01:14 PM
1

Money Gifts - How does The Taxman Know?

We argued, in our old Fogies golf group, about having to pay tax on gifts, of money, to one's children, etc.

We all know that the taxman is going to get some tax for 7 years - but we don't understand how they know!

There must be an efficient way, of the Taxman finding out what has been gifted out, but how does he do it?

We know that we have to declare these gifts !

Without an efficient info system, nobody would be paying....!

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bakerman
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Mexico
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29-02-2020, 01:33 PM
2

Re: Money Gifts - How does The Taxman Know?

I have no idea of how it works in the UK, but here in the U.S. any check or cash deposited in the bank, over $10,000 USD, the bank is required to report it to the gov't.

If you or any of your mates wanted to gift your children, I would suggest you do so in cash and in relatively small amounts over an extended period. Then, when the children use that money, they could do so by paying debts in cash. Any time money is deposited in the bank it leaves a paper trail. However, pure cash transactions leave no trail.
Donkeyman
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27-03-2020, 03:32 PM
3

Re: Money Gifts - How does The Taxman Know?

Originally Posted by bakerman ->
I have no idea of how it works in the UK, but here in the U.S. any check or cash deposited in the bank, over $10,000 USD, the bank is required to report it to the gov't.

If you or any of your mates wanted to gift your children, I would suggest you do so in cash and in relatively small amounts over an extended period. Then, when the children use that money, they could do so by paying debts in cash. Any time money is deposited in the bank it leaves a paper trail. However, pure cash transactions leave no trail.
So suppose you had 20,000 dollars in the bank, could you not
withdraw it all, make the gift, and say you lost all gambling??
Or do you have to produce a betting slip or something?
Donkeyman!
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Muddy
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28-07-2020, 05:28 PM
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Re: Money Gifts - How does The Taxman Know?

They would have to account as to where it came from .
 

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