CAT & Joint Bank Accounts

What are the tax implications of this scenario?

Two siblings - both 40 years old - neither incapacitated - both resident and domiciled in Ireland - set up a joint bank account.

Sibling A deposits €1,000 each month.

Sibling B spends €1,000 each month using their bank card for this account / their utility bills are paid by DD from this account / ect.

This arrangement lasts for 10 years.

Thanks.

The devil is in the detail but that looks like an arrangement involving the first sibling gifting a grand a month to the spender. What would you think yourself??

Why do this ?

I don't get it - I'm with torblednam on this.

Is there some sort of artificiality required by having a joint account? Which would not stand up to scrutiny by Revenue if they ever audited?

mf

Pretty simple really; Sibling A is gifting €12,000 a year to Sibling B.

The first €3,000 is ignored each year, then €9,000 falls off the Group B threshold of circa €33,500 until it’s used up and then there’s 33% tax on the excess.

One might be able to juice it up a bit by dealing in spouses/partners thus doubling/quadrupling the €3k and adding a Group C threshold into the mix.

But there is no ‘joint account silver bullet’. People seem to think that there is.