Lotto Family Syndicates

Gordon Gekko said:

No, it's tax evasion, plain and simple.

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Out of interest at what point in time would the act (retrospective formation of a syndicate) become one of tax evasion ?

If the opportunity to engage in retrospective syndicate formation is available before payment of winnings occurs could that not be used as a valid mechanism of tax avoidance ? Otherwise, the only certain way to counter this would be for a syndicate to formulate it's agreement and to lodge it somewhere, on a formal basis, so that retrospective syndicate formation could not occur.

It's tax evasion, end of story.

If I buy a ticket and I've the winning numbers in a €12m draw, I have an asset worth (say) €12m.

Retrospective syndicate formation is just like backdating of almost any kind; it's dodgy. Forming a four person syndicate after the fact in my €12m example is simply a sham to evade €3m of Capital Acquisitions Tax.

Gordon Gekko said:

It's tax evasion, end of story.

If I buy a ticket and I've the winning numbers in a €12m draw, I have an asset worth (say) €12m.

Retrospective syndicate formation is just like backdating of almost any kind; it's dodgy. Forming a four person syndicate after the fact in my €12m example is simply a sham to evade €3m of Capital Acquisitions Tax.

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I am inclined to agree with you that it is indeed dodgy and a sham.

Personally, I would be disinclined to join such a scheme as I would fear leaving myself open to a charge of fraud or conspiracy to defraud. However, the question is whether or not it would be legitimate as far as Revenue are concerned. I use "legitimate" in the sense of being one of those exercises where Revenue know or suspect exactly what you have done but cannot establish the accusation !

Out of interest, do Revenue ever investigate large lottery "syndicate" wins with a view to mind to establishing if there is provable fraud or conspiracy to defraud based on retrospective syndicate formation ? Do Revenue or the Gardai have any legal authority to conduct such an investigation ?

DirectDevil said:

Out of interest, do Revenue ever investigate large lottery "syndicate" wins with a view to mind to establishing if there is provable fraud or conspiracy to defraud based on retrospective syndicate formation ? Do Revenue or the Gardai have any legal authority to conduct such an investigation ?

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Good luck with that one. Thankfully we don't live in a fascist state where the presumption of innocence counts for nothing.

I see no reason for the Gardai to get involved in what is purely a tax evasion scenario.The revenue could definitely ask a lot of questions, but proving any wrongdoing would be very difficult.