How to accept a cash gift from overseas

mikey72

I used to work for a french company, in the uk. I was paid into a swiss bank account, but had to pay the swiss bank, and the english bank for the transfer into the uk bank. It wasn't a great amount in fees though. You could open a swiss account, then just deposit the big bag of euros into it as cash, and transfer into the uk as you want to. You may have to explain to the uk tax office where the income is from though, if it flags up with them.

leg1t

Thank you. I am under the impression that even swiss banks require you to show proof in the case of cash so one is presented with the same issue. I get the idea that one has to travel further to avoid questions!

Incidentally, I read that swiss banks have started sharing info with the french tax authorities - whether that applies when the account holder is non-french but the transaction involved a french resident I don't know. That is on the basis one shows paperwork to prove the origin of the funds in France, in which case an authentication query long since triggered alarms!

So, [dreaming here] I just need a country that doesn't care about France, with banks that just want to see bank paperwork to make sure the cash isn't illegal - drug-style (not tax-dodge). It makes the mind tick!

Chinkle

First of all lucky you. If this person can afford to give you €30K why not do so legitimately - you'll still end up with 30%-40% of the gift - not a bad sum.

Alternatively, if the gift is €30K for a reason then they would need to gift you €100K to start with which would end up as €30K after tax.

Simple!!!

dzug1

leg1t wrote: »

So, [dreaming here] I just need a country that doesn't care about France, with banks that just want to see bank paperwork to make sure the cash isn't illegal - drug-style (not tax-dodge). It makes the mind tick!

The bottom line is that the transaction IS illegal though. You are looking for ways to hide that illegality or reassurance that it's undetectible. I don't think anyone is in a position to tell you that.

Mojisola

Out of interest - how would you stand if you both opened a joint account, the donor put the money into it and only you withdrew money? Would it still be looked at as a gift under French tax law?

leg1t

dzug1 wrote: »

The bottom line is that the transaction IS illegal though. You are looking for ways to hide that illegality or reassurance that it's undetectible. I don't think anyone is in a position to tell you that.

I'm not seriously looking any more (hence 'dreaming'!). All that's happened here is a discussion and from this discussion I've learned that the stakes are too great - I'd either have to protect the donor and get done for money laundering in the UK or I come clean and we both suffer some other consequence for tax evasion. Some might consider it a risk worth taking, others might not even have thought about it in the first place. As I mentioned, I'm more of someone who might bend it a bit - so I'm likely to accept a few euros on an ongoing basis - take home a computer, travel tickets in cash, maybe a couple of g's you know where. No fast cars though.

Bikertov

OK - it sounds like leg1t is just looking at ways of receiving a gift, and minimising the potential tax inplications. This is what accountants are paid to do every day ...

How about the donor buys you something of value, and gives you that. You then sell it, and realise the value. It may be cheaper than paying the tax ?

Elaine_Wilson

I'm confused about all this talk of money laundering.

In the initial post it was stated that the money intended as a gift was legitimate. Perhaps other posters know that this is not true but I will accept it at face value.

For money laundering to come into play in the UK we need to identify the proceeds of a crime. Given the preceding paragraph the only crime can be tax evasion in France.

The poster has been offered a gift of money in cash. In the UK we can use cash to transfer value between individuals. There is no law against it. I bought some food yesterday with cash. I do not think I am a criminal.

There is, of course, the possibility that the donor may not pay the correct tax on the gift. When is this tax payable? Must it be paid to the authorities on the day of the gift? If not, then I would suggest that when the gift is received no crime has been committed. So there is no evidence of collusion in a tax fraud.

The person receiving the money is not necessarily a party to a crime. By a strange coincidence I stole some money on Friday. At the time I believed it was mine. I spent this money (£1 to be precise) in a club I belong to. Surely no-one would suggest they are a party to money laundering?

Just in case anyone is wondering about Martin allowing master criminals to post here I reimbursed my friend his £1 on Saturday. We had a good laugh and since I bought him a drink as an apology I am now out of pocket for my misdemeanour.

TM1976

Here is some information on French gift tax:

http://riviera.angloinfo.com/countries/france/moretax.asp

It appears that this is just a part of the inheritance tax regime there and as such you have the option to pay tax now or when the donor dies. There are also some exemptions that you can use to gift depending on your relationship with the recipient.

tyllwyd

Elaine_Wilson wrote: »

For money laundering to come into play in the UK we need to identify the proceeds of a crime. Given the preceding paragraph the only crime can be tax evasion in France.

Just reading your post, I think you are taking an over-simplistic view of the issue. If French gift tax (or inheritance tax) could be legitimately avoided by giving cash to someone who lives in a different country, don't you think everyone would be doing it? I don't know what the French law is, but I am willing to bet that they have already thought of that option and laws are in place to prevent it! And just because you are a UK citizen it doesn't mean that you can't break a law in France and be prosecuted in France.