quick answer needed.. please help

davebelushi

hi. if say, my father placed 76k into my bank account from his own company funds without asking me 1st and then asked for me to write him a cheque to pay him personally back. how could this impact on me, tax reasons etc. you should pressume that this is the 1st time that this has happened and that i have a job elsewhere paying approx 20k per annum.

he hypothetically wants the money back today and 'I' need to know what to do.

Thanks

IvanOpinion

Sounds like a possibility of a bit of money laundering going on? Do the banks not detect such large sums moving around and trace them

Ivan

ctdctd

davebelushi wrote: »

hi. if say, my father placed 76k into my bank account from his own company funds without asking me 1st and then asked for me to write him a cheque to pay him personally back. how could this impact on me, tax reasons etc. you should pressume that this is the 1st time that this has happened and that i have a job elsewhere paying approx 20k per annum.

he hypothetically wants the money back today and 'I' need to know what to do.

Thanks

IMO, you could get taxed on the amount he put into your account as this is above the annual £3000 gift allowance. :eek:

He could also get taxed on the amount you pay him back for the same reason

Ivan_Konstantinov

sound like he is trying to "wash" his money :eek:

davebelushi

thanks guys. apparently the 'tax' has already been paid! my 'friend' will ring an accountant contact of his to investigate further.

Aegis

davebelushi wrote: »

thanks guys. apparently the 'tax' has already been paid! my 'friend' will ring an accountant contact of his to investigate further.

The tax mentioned here has NOT already been paid. Transfers between accounts of that much money may well be subject to IHT or similar taxes, so it makes very little sense to pay you and then ask you to pay him.

As other have mentioned, it sounds very dodgy with the information available so far, and you'd do well to make sure that if anything illegal is going on, you are NOT aiding it, as that can land you in fairly serious trouble yourself. Calling an accountant is probably a good idea, if only to see what his/her take is on it.

EDIT: It seems that a gift probably wouldn't incur any immediate Inheritance Tax, but if your father (or you) died any time in the next 7 years, the transfer could be subject to a fairly weighty tax fee. In addition, the transfer from his company bank account to you, then back to his personal account might be some form of tax evasion. Top it all off with the comments about possible money laundering, and you have a very weird situation.

davebelushi

Aegis wrote: »

Top it all off with the comments about possible money laundering, and you have a very weird situation.

thats what my 'friend' thinks too!........