Gift Tax/Politics

[Bronte]

If you received a 'gift' of 30K Irish in 1993 what penalties and interest would you have to pay revenue today if you had not declared it at the time?
If you buy a house for someone else to live in and they stay rent free do the renters have to pay tax on this in any way?
What are the chances that revenue are going to go to all political cumans (spelling) to ask them what 'unrepaid loans' they have given to people over the last 15 years?

 

[Graham_07]

If you received a 'gift' of 30K Irish in 1993 what penalties and interest would you have to pay revenue today if you had not declared it at the time?

That would depend entirely on the relationslip between the disponer & the recipient. Some gifts would attract no tax, no declaration requirement and accordingly no penalties or interest.

If you buy a house for someone else to live in and they stay rent free do the renters have to pay tax on this in any way?

There is a benefit-in-kind on the deemed value of the rent. However, again depending on the other income of the beneficiary, there may or may not be any tax implications.

What are the chances that revenue are going to go to all political cumans (spelling) to ask them what 'unrepaid loans' they have given to people over the last 15 years?

The Revenue Commissioners would be expected to follow all suspected instances of non-payment of tax where payment might have or ought to have been paid, using the same procedures that they always have.

 

[Towger]

Lets see:

From: http://www.revenue.ie/index.htm?/revguide/capitalacquisitionstax.htm.

Group C Threshold in 1993 was €14,538. That's if the threshold was not already used, which I believe not to be the cause.

Benefit taken between 30 January 1991 and 10th April 1994 (inclusive)
Rate:
Threshold amount Nil
Next €12,697 20%(£10,000)
Next €50,790 30% (£40,000)
Next €63,487 35%(£50,000)
The Balance 40%

I am sure one of the accountants can tell us Revenue’s interest rate. I think it is along the lines the base rate + 5% compounded monthly and then doubled to get the penalty.

 

[Bronte]

Thanks Towager, I've worked out it's 30K - 11500 threshold = 18551 liable to tax. First 10K @ 20 % = 2K. Next 8551 @ 30 % = 2565. About 4565 tax in pounds. (I used .787564 to get the threashold of 14538 Euro to 11449 IEP rounded to 11500 for simplicity - hope this is correct but haven't been doing tax calculations regularly).
I know you've written the interest and penalty but how would that sum go please. Ball park figure please. There must be a formula, easy way to do this. If it's the base rate that would have been quite high in 1993 when some mortgages were circa 15%?