Financial Advisor Complaint Dropped - Payoff Taxable?

[Ham Slicer]

Question.

Man reports financial advisor for dodgy dealing. Man has lost nothing due to deal.

Financial advisor pays man say 20K not to follow through with complaint as he would have been more than likely struck off.

Is the 20K taxable?

I would expect it to be taxable as "other income".

 

[Graham_07]

Re: Taxable

1) As a frequent poster you should be more than well aware of posting guideline

2) I would also expect it to be taxable. Whether it is income , subject to IT or a gift subject to CAT might be subject of debate depending on how it is viewed by Revenue. Also how is the financial advisor treating it, are they treating it as an IT deduction ? If so then it would be IT taxable on the recipient.

 

[Ham Slicer]

Re: Taxable

1) As a frequent poster you should be more than well aware of posting guideline

Agreed - can I amend title myself?

2) I would also expect it to be taxable. Whether it is income , subject to IT or a gift subject to CAT might be subject of debate depending on how it is viewed by Revenue. Also how is the financial advisor treating it, are they treating it as an IT deduction ? If so then it would be IT taxable on the recipient.

I'm of the opinion that it would fall under IT. Not likely to get a response from advisor as to their treatment.

Thanks

 

[Graham_07]

Re: Taxable

You can amend thread titles yourself.

I would lean heavily towards IT myself.