Revenue rules that annual small gift exemption must be actually given and not just "earmarked".

P

Philip S

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Interesting article in the independent;
(https://www.independent.ie/irish-ne...espite-communion-money-claims/a845644263.html)

I would tend to agree with the ruling here that the small gifts from parents was retrospective issue and not something done over time.

if it was me I would either have the money in a separate account purely for the child if reason he cant have in own name or set up account in the child's name.
If the gifts were genuine i would expect better planning and records from someone in the legal profession.
 
Very interesting article. I have tried to summarise it in a revised title to the thread.

These payments were not made by the transfer of money to a separate account in the name of the son but rather the Appellant’s father stated in evidence that he and his wife “earmarked” money in their joint account for the benefit of their son.

We could all do that. If I wanted to give a friend €60k I could claim to have earmarked €3k a year for him for the last 20 years.

Brendan
 
A fascinating case. The parents seem to have been contending that an oral trust existed. The Appeal Hearing found their argument wasn’t credible. There’s no issue with the monies being held in the parents’ account but commonsense would dictate that you’d document that at the time and with a Trust Deed. I have zero sympathy for them.
 
Very interesting. I wonder if the ‘Bank of Mam & Dad’ will be investigated also. They usually draft up a letter outlining its a loan being given towards the purchase of a house. Will repayments be looked at?
 
My reading of the article is that if the father had a dedicated bank account not necessarily in the name of the son it might have worked. Maybe I'm misinterpreting
 
Our kids often get cash gifts for Christmas, birthdays etc and Catholic sacraments tend to be very good earners for the kids
It's simple to get an account set up and lodge as and when gifts are given. We actually sometimes get asked for account details for direct lodgement to make it easier. And believe me kids are excellent record keepers themselves, if I ask to borrow from their cash stash for incidentals they make sure i return it! So no excuses for this case, they clearly wanted to transfer money and made up reasons why after the fact.
 
Of course as Revenue accelerate the abuse of technology I assume we will have to make a return as you pay.
 
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