Declaring a gift
Re: Declaring a gift
Not interested in small amounts?
I had a letter from Spanish tax office re 2016 tax year. Two discrepancies. Under declaration of income ( easily answered as my pension provider pays January in December) . Second was failure to declare £2.40 of interest on a UK building society account I had forgotten I had.
I had a letter from Spanish tax office re 2016 tax year. Two discrepancies. Under declaration of income ( easily answered as my pension provider pays January in December) . Second was failure to declare £2.40 of interest on a UK building society account I had forgotten I had.
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- Andalucia Guru
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Re: Declaring a gift
I wonder if they would have bothered if it was just the interest. Probably it was the pension discrepancy that got flagged.
What was the fine?
Sid
What was the fine?
Sid
Re: Declaring a gift
There wasn't a fine.
I took the papers down to our gestor (rightly or wrongly we pay him to do our returns). He said normally I charge walk ins 100 euros to process these but as you are a customer it is free.
He dealt with tax office. As there wasn't an over payment of my pension (i.e. I had declared correctly) there was just the matter of tax owing on the sum of £2.40 at a guess 70 cents. I guess common sense prevailed and they went chasing bigger fish
I took the papers down to our gestor (rightly or wrongly we pay him to do our returns). He said normally I charge walk ins 100 euros to process these but as you are a customer it is free.
He dealt with tax office. As there wasn't an over payment of my pension (i.e. I had declared correctly) there was just the matter of tax owing on the sum of £2.40 at a guess 70 cents. I guess common sense prevailed and they went chasing bigger fish
Re: Declaring a gift
You may be just unlucky. Where did they get the info from? Authorities cannot just access your bank accounts without a good reason.
Here is a bit from a letter I have.
If they have reason to request the information, then apparently they will. There would have to be some reason for them to suspect tax avoidance, it would not be a matter of routine. –
So, according to your reading of the agreement, countries will specifically have to request the records from other countries for particular people, they will not automatically get blanket downloads of foreign bank account information
Yes, that is certainly my understanding. Tax authorities would be required to present reasons for suspecting avoidance. A country like Australia or Canada will have tens of thousands of foreign nationals resident for tax purposes at any given time. It would be entirely impractical to inspect all of the associated data. There are also security and privacy issues involved in a blanket transfer of data.
PS. from personal experience Spanish tax authorities are not so good.
Here is a bit from a letter I have.
If they have reason to request the information, then apparently they will. There would have to be some reason for them to suspect tax avoidance, it would not be a matter of routine. –
So, according to your reading of the agreement, countries will specifically have to request the records from other countries for particular people, they will not automatically get blanket downloads of foreign bank account information
Yes, that is certainly my understanding. Tax authorities would be required to present reasons for suspecting avoidance. A country like Australia or Canada will have tens of thousands of foreign nationals resident for tax purposes at any given time. It would be entirely impractical to inspect all of the associated data. There are also security and privacy issues involved in a blanket transfer of data.
PS. from personal experience Spanish tax authorities are not so good.
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- Andalucia Guru
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Re: Declaring a gift
They get it direct from HMRC. They are doing a lot of checks at the moment on 2016 declarations from foreign residents.
I recently had a notification querying my 2016 declaration. I was about the discount applied to annuities. It was quickly resolved, but they included details of all my pensions which had come from HMRC.
Sid
I recently had a notification querying my 2016 declaration. I was about the discount applied to annuities. It was quickly resolved, but they included details of all my pensions which had come from HMRC.
Sid
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- Tourist
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Re: Declaring a gift
a person would have to a compleat idiot not to declare were there is a paper trail ,given the CRS and exchange of information ,i have no issue in paying 200 0r 300 euros on a gift, it is my choice to live in spain and i have the option to leave if i am not suited to spain's tax laws,also my gift tax money may help pay for a front line worker .
Re: Declaring a gift
More chance of it going in some corrupt Politicians pocket.
Re: Declaring a gift
Exchange of information act that came in around 2016. Countries that are apart of the agreement can access each other's recordskaty wrote: ↑Thu Nov 12, 2020 1:33 pm You may be just unlucky. Where did they get the info from? Authorities cannot just access your bank accounts without a good reason.
Here is a bit from a letter I have.
If they have reason to request the information, then apparently they will. There would have to be some reason for them to suspect tax avoidance, it would not be a matter of routine. –
So, according to your reading of the agreement, countries will specifically have to request the records from other countries for particular people, they will not automatically get blanket downloads of foreign bank account information
Yes, that is certainly my understanding. Tax authorities would be required to present reasons for suspecting avoidance. A country like Australia or Canada will have tens of thousands of foreign nationals resident for tax purposes at any given time. It would be entirely impractical to inspect all of the associated data. There are also security and privacy issues involved in a blanket transfer of data.
PS. from personal experience Spanish tax authorities are not so good.
Last edited by elusive on Thu Nov 12, 2020 2:12 pm, edited 1 time in total.
Re: Declaring a gift
Yes but as I copied below there has to be some reason for it Where tax evasion is suspected There has to be a formal request and decision. Asking for information for a few euro is a bit of waste of man (or woman) power.
Re: Declaring a gift
Good for you.reamer1960 wrote: ↑Thu Nov 12, 2020 1:55 pm a person would have to a compleat idiot not to declare were there is a paper trail ,given the CRS and exchange of information ,i have no issue in paying 200 0r 300 euros on a gift, it is my choice to live in spain and i have the option to leave if i am not suited to spain's tax laws,also my gift tax money may help pay for a front line worker .
Its a shame Juan carlos doesnt have that attitude. The more money they have the more gready they become
Re: Declaring a gift
The way it works from what ive read (if thats correct who knows) is that hmrc voluntarily send x amount of accounts or all accounts over to hacienda and hacienda do what they like with them. They prob hand pick x amount to check against spanish tax returns or not if they havnt been filing any. Theres no request as such from hacienda. But even if there was i dont see why there has to be any evidence of suspicion. Hacienda just wants to check that mr smith is declaring what he should be in spain interms of overseas accounts which otherwise they wouldnt know about.
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Re: Declaring a gift
You may not see there should be evidence but there is. There are other laws to data protection and privacy. It is not true that reams of people's data is transfered like that. bar-room myth.
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Re: Declaring a gift
I had to fill out various forms so as not to be taxed at source in the UK with things like interest and rental payments. It quite clearly said on the forms that information is exchanged between countries in the scheme.
Many enquiries come years later, We had and enquiry from Hacienda asking why my wife had not paid tax on UK rental income in around 2014 earlier this year. It turned out that the Gestor had included it with my return that year. Hacienda were OK with that but they still checked.
Many enquiries come years later, We had and enquiry from Hacienda asking why my wife had not paid tax on UK rental income in around 2014 earlier this year. It turned out that the Gestor had included it with my return that year. Hacienda were OK with that but they still checked.
Re: Declaring a gift
The UK tax year is different to that in Spain so the figures will not match exactly for a year. I guess it would give them an idea of the type of income you have, though, such as rental income or pensions.
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Re: Declaring a gift
the plot thickens ,my representative has been to the tax office this morning ,because the gift is gifted from a non resident it is a central government tax office competency and not a regional one .......and they gave her a phone number to contract the madrid central tax office for further instruction.
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