# Gift tax - 60K



## Josvill2010 (15 Jan 2010)

In order to avoid to pay 25% CAT of a gift of 60K from a 3rd party a friend of mine is thinking that the gift should be divided between her boyfriend, his mother, and his father. That way all falls under the 21K threshold.

Does this look right to you? Any other suggestions, questions?

Thanks,
jose


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## dereko1969 (15 Jan 2010)

It would be regarded as a deliberate attempt to evade taxation and would fall foul of section 811 of the TCA in my opinion.


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## Bonzo (16 Jan 2010)

http://www.citizensinformation.ie/c...ax/tax/capital-taxes/capital-acquisitions-tax

These figures are normally updated in late January of each year, and then apply to the entire tax year. Yes just checked not changing that much follow link below

http://www.charteredaccountants.ie/...tal-Acquisitions-Tax---2010-Group-Thresholds/


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## Gervan (16 Jan 2010)

If the donor is happy to give such gifts to these 4 people, fine, but if you then want them to pass the money over to you, you are back over the threshold again.


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## Josvill2010 (18 Jan 2010)

Donor is happy. 
She is thinking to put down a deposit for an appartment with that money and avoiding any 25% CAT by her boyfriend getting that money through his parents -all free of CAT.


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## mathepac (18 Jan 2010)

This sounds like a tax evasion strategem to me and tax evasion is illegal. AAM does not condone, support or encourage tax evasion or other illegal activities.


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## Graham_07 (18 Jan 2010)

Josvill2010 said:


> Donor is happy.
> She is thinking to put down a deposit for an appartment with that money and *avoiding *any 25% CAT by her boyfriend getting that money through his parents -all free of CAT.


 
Your use of this word is incorrect in the circumstances you described. The word *evasion *is more correct, and as other posters have said this is illegal and not supported on AAM.


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## asdfg (18 Jan 2010)

The treshold for each catagory can only be used once. So if they get ever get any other gifts from strangers apart from the annual exemption they will have to pay tax on the entire gift.

In 2010 - Donor A gifts 20,000 Exemption 20740 No gift tax payable 
In 2012 - Donor B gifts 10,000 Expemption 22,000 

Tax as follows 
Total Gifts 30,000 
Exemption  22,000 

Tax payable on 8,000 at 25%


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## coast4 (11 Feb 2010)

Can a daughter gift cash to a parent?What are the tax implications and thresholds please?


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## Graham_07 (11 Feb 2010)

coast4 said:


> Can a daughter gift cash to a parent?What are the tax implications and thresholds please?


 
€41,481 is the amount after which CAT is payable. see here  under Class B  In certain cases inheritances by parent from child can qualify for the higher Class A threshold.

Bear in mind that is the aggregate of all gifts/inheritances under Class B so if the parent had already received, say, €20,000 inheritance from a brother 2 years ago then there is only €21,481 left in that threshold for gifts/inheritances from other class B donors.


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