I failed to declare a gift I got back in 2007. How do I rectify it?

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Stuffed

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I received a gift back in 2007 of €50,000 from my brother- in - law who had a big win in the lottery back then. I thought lottery wins carried no tax but a friend has told me that is only the original winner , the brother in law.
I have never declared it as I ignorantly thought that it would be free from tax. However I understand now that I was liable. The guilt and the fear of being caught to be honest has caught up with me. How do I go about paying the liability now. Will there be a penalty for time elapsed and much will I be paying ?
 
What a relief. Thank you so much. Maybe my brother- in law had it all worked out when he gave me the money. Thanks again Mr McGibney.
 
Stuffed said:
What a relief. Thank you so much. Maybe my brother- in law had it all worked out when he gave me the money. Thanks again Mr McGibney.
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Sorry, please ignore what I said as I misread your comment that the gift was from your brother, not your brother in law. Hence I deleted it.

If you still have some of the money, you could always pay him back enough of it to keep the remainder under the 2007 threshold of roughly half of what you received. Frankly, no accountant will relish engaging with Revenue over an issue as old as this, and I guess that no Revenue person will relish dealing with it either, as the likely interest charges if applied are likely to be ridiculously high.
 
Hi again Mr McGibney. Its ok, these things happen. Unfortunately most of the money is well spent at this stage . I ‘d have about €4k and I could probably borrow €5 from the credit union but from what you say that won’t come near the liability. I’ll try and get hold of an accountsnt to deal with it but from what you say , they won’t touch. Should I just ring Revenue myself and just tell them what happened and see will they give me a quote and stagger the payments. Sure whats the worse they can do me?
 
Was it received into a joint account? Are you sure the gift was from your brother-in-law to yourself, and not perhaps to your spouse? Or did they also receive a similar gift?

Historical CAT thresholds are at https://www.revenue.ie/en/gains-gif...regation-rules/historical-cat-thresholds.aspx . Siblings would be in Group B.

Is it also possible that your brother-in-law intended to gift you only the first €24,841 and lend you the balance which would have been subject to gift tax, and then generously wrote off some of the capital and interest each year using the annual small gift exemption of €3000 ?
 
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MugsGame said:
Was it received into a joint account? Are you sure the gift was from your brother-in-law to yourself, and not perhaps to your spouse? Or did they also receive a similar gift?

Historical CAT rates are at https://www.revenue.ie/en/gains-gif...regation-rules/historical-cat-thresholds.aspx . Siblings would be in Group B.

Is it also possible that your brother-in-law intended to gift you only the first €24,841 and lend you the balance which would have been subject to gift tax, and then generously wrote off some of the capital and interest each year using the annual small gift exemption of €3000 ?
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Hello Mugsgame. Yes , the money was lodged directly in to our joint account ( me and the wife’s). He wanted to help me out with a small carpentry business I was starting up. Are you saying I could claim that me and my wife received €25 thousand each ? Tbh I hadn’t seen it that way.
 
Stuffed said:
Hello Mugsgame. Yes , the money was lodged directly in to our joint account ( me and the wife’s). He wanted to help me out with a small carpentry business I was starting up. Are you saying I could claim that me and my wife received €25 thousand each ? Tbh I hadn’t seen it that way.
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You also have the 3k gift exemption for both you and your wife for the yr in question.
 
Stuffed said:
Hello Mugsgame. Yes , the money was lodged directly in to our joint account ( me and the wife’s). He wanted to help me out with a small carpentry business I was starting up. Are you saying I could claim that me and my wife received €25 thousand each ? Tbh I hadn’t seen it that way.
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I'm not an accountant or a tax expert, but I'd be morally comfortable with that interpretation, and I think Revenue would be hard pressed to challenge it. Unless either of you have received other gifts from Group B/C - I think it's a lifetime limit across all benefactors.
 
Sorry for delay , Mugsgame. Just tracked back my old joint account bank statements in the meantime . Everything is there in black and white and I think I’ll take your advice on this. No , neither of us have ever received other gifts under any Category at all. Thank you so much.
 
On a point of interest , if someone were to receive say a gift from a parent of say , €300,000 in 2007 under Category A when the threshold was €496824 , and paid no tax at the time , if she were to be given a further gift / inheritance from the same parent today in November 2022 for say €100,000 what is the situation then tax liability wise ? Does the threshold of €335,000 for all monies received apply or are the two distributions dealt with separately ?
 
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