Regular cash gifts...?

McKneff

I dont know why youre all bothering to be honest.

Come back DMG24, she could spot a troll at 100 yards.

lov3cats

Yorkie1 wrote: »

But your bank won't know from whom the money is coming, in the sense that they don't know anything detailed about the person who has written the cheque. It will simply see what is a very very large sum of regular money coming in by cheque.

Particularly if that is unusual for the customer / account, suspicions will be raised that the money is not completely clean - e.g. it comes from a suspicious transaction, or is being used to evade tax elsewhere etc.

The bank is legally obliged to report such suspicions to the authorities and not to tell the account customer.

Do you think that after investigating and tracing the gift to the tax-paying giver (that isn't actually spending unusually- they have a lot of disposable income) the investigation would end? My initial concern was that they'd suspect the receiver of the gift of actually providing services/goods and receiving payment in disguise- perhaps their investigation would merely broaden?

Yorkie1

I don't think it's possible to predict with any certainty to be honest.

There are several issues here.

Firstly, whether the original funds were obtained legitimately.

Next, the reason for the transfer of funds. A person can give money away for any legal reason. There may be suspicions about the reasons for this as you raise. If they suspect that you're doing business under the radar and, therefore, not declaring the stuff you should be declaring such as NI and tax, then they may investigate that too.

Finally, what happens to the money afterwards. Whether it's a legitimate onward treatment of the money - whether through declaration of interest received (e.g. relevant to income tax), or other purchases made with the money. If it looks as though there's an underhand reason for the onward use of the money, they may investigate that too.

I am guessing here and I think the only way to find out will be through time and experience.

lov3cats

Yorkie1 wrote: »

I don't think it's possible to predict with any certainty to be honest.

There are several issues here.

Firstly, whether the original funds were obtained legitimately.

Next, the reason for the transfer of funds. A person can give money away for any legal reason. There may be suspicions about the reasons for this as you raise. If they suspect that you're doing business under the radar and, therefore, not declaring the stuff you should be declaring such as NI and tax, then they may investigate that too.

Finally, what happens to the money afterwards. Whether it's a legitimate onward treatment of the money - whether through declaration of interest received (e.g. relevant to income tax), or other purchases made with the money. If it looks as though there's an underhand reason for the onward use of the money, they may investigate that too.

I am guessing here and I think the only way to find out will be through time and experience.

I was beginning to think quite the same thing- thanks for your time and patience.

heathcote123

Would you have to hand on 90% of the 'gifts' in cash to another party by any chance?

lov3cats

heathcote123 wrote: »

Would you have to hand on 90% of the 'gifts' in cash to another party by any chance?

No, the money would be the recipient's to keep. What a suspicious question No shortage of active minds on this forum, hm.

antrobus

lov3cats wrote: »

No, the money would be the recipient's to keep. What a suspicious question No shortage of active minds on this forum, hm.

I think you'll find that there are no shortage of 'active minds' within the ranks of HMRC, CID, or those who operate AML within banks either. Assuming you're for real, 'suspicious questions' are what you will be faced with, and if you want to keep your mitts on the money you'll need to come up with some non-suspicious answers, otherwise they will just assume the worst. That's really all anyone can say on the basis of the scant information supplied.