mandelbrot
Registered User
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I don't see anything extraordinary in the OP amount of savings. A friend of mine is in a similar income range (with no nixers) and is desperately saving to buy a property. He lives at home with mum who provides all the home comforts free (Her way of helping him to get on the housing ladder) and as he is studying there very little time at the moment for socializing. Living costs for him are minimal, hence the large savings
You mustn't understand the meaning of the word extraordinary so!
Here's a dictionary definition:
1. beyond what is usual, ordinary, regular, or established.
I would say it is unusual, the proof of this being that you know ONE person who is in a similar situation to this guy. I'm in the same age bracket and I don't know anyone in that situation! (And besides, 55k is nearly enough to buy a house these days, never mind say a deposit!)
I think what you meant to say was "Did someone inform the Revenue in an act of patriotism that he was stealing from the rest of us?"Did someone grass on him to Revenue?
I'm not so sure. I certainly wouldn't count this as extraordinary. I know plenty of people in their early-30s who managed to put down a decent deposit on the purchase of their first home during the boom period. Some of these people also had money saved for stamp duty. Even back then, 70% or 80% mortgages were quite common, even for first time buyers.
It shouldn't be beyond anyone, who has been working for 10+ years in a reasonably-well paid job, living at home, and living fairly frugually, to save in the region of €5,000 a year. If they saved the equivalent of the max. SSIA sum of €254 per month (as many thousands of people comfortably did) they would be more than halfway there.
I suppose we could argue in hypotheticals all day, since we don't really know the specifics, but I take your point about the preference of some people for a lower LTV mortgage. without wanting to split hairs, I was working on the assumption of the money being saved over 5/6 years (although from rereading the OP that's not necessarily the case!).
Now, as I said I'm hitting 30 as are most of my friends, and I don't know many people (with a proper job) whose parents would be happy to have their offspring living rent free with them at this stage of their life!
Certainly if he accumulated the money over a longer period he'll probably get off the hook, but if he's gone from pretty much 0-55k in 5 years, and assuming 5years ago he was earning less than the 35k he's on now, then he'd have to be leading a monastic lifestyle!
If he's living with parents and paying no rent (bizarre in your 30s if you have a job, but anyway)
My parents in law allowed all their children to live at home as long as they wanted - so long as they were unmarriedAnd didn't look for any financial contribution. The children were generally roped in some work around the house, cutting the grass etc, but the revenue can hardly prove that, put a value on this work and charge tax
Actually, only one of the boys lived at home all the time until he got married (others had to move for work), but he certainly saved a handsome deposit
I also know several others who live at home without contributing anything financially. Some even moved in with their parents after getting married, so as to save money for a deposit.
I think it depends on family attitudes and financial means. Though it is not for the Revenue to pass moral judgement on people - whether they should be living at home rent-free or not, there is no law to forbid itAnd - as yet - no law to tax it All the Revenue can do is demand proof of source of funds and bank statements. If they can't find any evidence of undeclared income, than that's the end of it
Also, even if someone on 35K p.a. pays a little something to his parents towards his living expenses, he can still save plenty.
A lot of Irish parents actually helped their children to get on the property ladder by giving them gifts of money for a deposit and/or acting as a guarantor. Compared to that letting your child live with you for a few years rent-free to save for a deposit is relatively pain-free and is quite widespread. At least I know more people living with their parents rent-free than those who pay anything.
It appears that you are quite happy that he may get off the hook. Personally I'm not happy. I pay tax on all of my income. So I'd like for everyone else to do the same, and if they did then we might all individually pay slightly less! We're all in it together, so why should any of us who pay our fair share have the attitude that its acceptable for anyone else not to?All the Revenue can do is demand proof of source of funds and bank statements. If they can't find any evidence of undeclared income, than that's the end of it
It appears that you are quite happy that he may get off the hook. Personally I'm not happy. I pay tax on all of my income. So I'd like for everyone else to do the same, and if they did then we might all individually pay slightly less! We're all in it together, so why should any of us who pay our fair share have the attitude that its acceptable for anyone else not to?
So what I'll smile about is the thought that maybe this guy hasn't been clever, that he's kept his cash in a jar and lodged it to his savings account in blocks of a thousand here and there, and has no explanation for it, and gets to pay all of the tax he originally should have, with a suitable penalty and some interest.
Thank you all for feedback- my friend and her son are law abiding citizens I think and hope, you will be all glad to hear. The son is particularly hardworking. Only reason I posted message here was that 'panic' was that they never received any letters from Revenue like this 'audit' before- som people are pros at correspondence with the Revenue. So all the input and advice appreciated.
Your friend's son is not a law abiding citizen. He is a tax evader and he is stealing from all of us. I hope that Revenue throw the book at him.
Mind you don't Social welfare put a value on board & lodgings for people who live at home with their parents when they apply for benefits? So whats to stop revenue from doing the same? maybe taxing board and lodgings as a benefit in Kind?
Your friend's son is not a law abiding citizen. He is a tax evader and he is stealing from all of us. I hope that Revenue throw the book at him.
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