Tax Avoidance Question.

T

TomPetty

Registered User
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52
Hi Folks,
In an effort to keep my Non PAYE earnings below the threshold of €3,174, is the following possible ?
Purchase NTMA products / PTSB / KBC accounts etc taken out in my childrens names ( Over the age of 12 ).
Interest goes into their accounts, not mine. NTMA Cert is in their name not mine. Therefore I keep below the magic number of €3,174 Deposit interest, and I do not need to include interest earned in their accounts, on the tax form that I may be sent out in future ..

Many thanks for your thoughts ...

Tom.
 
That sounds like pure Tax evasion IMO. Anyway as the children are under 18, the earnings they have are for your account.
 
In an your efforts to keep your Non PAYE earnings below the threshold of €3,174, you should be wary of engaging in Tax evasion.
 
My older kids all have their own accounts, with their own money in them. I guess my question is, if this money is passed to them now, and the deposit Interest earned is theirs also, am I still to include this deposit interest, in a return to Revenue ?

Many thanks,

Tom.
 
I'm not an accountant, but as far as I know all income up to 18 years of age is for the parents account, tax wise.
 
mercman said:
I'm not an accountant, but as far as I know all income up to 18 years of age is for the parents account, tax wise.
Click to expand...

I think that is the case if the money is gifted to the child up to 18. The parent is liable to pay tax on income earned by the child on the gifted amount.

Some exceptions apply to income earned by the child up to 18. For example, a child can work at aged 16 and is liable to pay PRSI from aged 16, the parent does not need to declare this because the child has earned that income in their own capacity.
 
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