Tax Evasion?!

adamsmithhrs

Hi,
Just a quick question really.

A friend of mine has asked me whether he can put some cheques into my bank account as he is currently setting up a new account but needs the cash. Am not talking a lot of money here less than £5000 in total.

I said it would be ok then started to worry that i might be doing something wrong?!

Is there any legal standpoint on this?

Thanks,

Adam

nomoneytoday

Don't do it - what happens if the cheques bounce or he is investigated later??

mitchaa

Is this not defined as money laundering?

Criminal offence?

JasonLVC

If he is putting cheques into your bank account then they must be made out in your name (or that of your business if you have one).

If your mate has the ability to write you cheques in your own name, then he already has a bank account and so setting up a new one should be a matter of days or even less if done in branch with all the appropriate ID required - I don't accept the 'time delay' for setting up an account and if he's that desperate for the cash then he should cash the cheques himself at Cash Converters or similar and pay the % commission fee.

If the cheques bounce then it will be your liability (just like the classic Nigerian scams we hear about), if over £5k (and out of character) the bank may raise an eyebrow and/or report this as suspicious themselves and you may find a visit from the taxman and having to explain where the £5k came from and went to.

Basically, in summary - no matter how good a mate, you really want to steer clear of handling funds through your accounts. it is traceable, auditable and whilst it is debatable whether it is tax evasion or not is certainly not common, ordinary and therefore difficult to defend if you were ever pulled in for a chat.