i am interested in how a court would deal with the following:
Two people are in a separation court case for over two years.
One person after a year starts a business and contracts work from person C.
Income to person C would appear to be €54000 from the public. This is cash in hand.
Person 1 who is the contractor is paid by person C and would get a substantial sum of the €54000 as there is only two of them in the business. (Well they are two sole traders).
Neither person 1 or person c are registered for tax and both are not registered as sole traders.
Person 2 is separating from person 1.
Person 1 gets person c to write a hand written note and claims that person 1 is an employee and not a sole trader.
Person c provides no wage slips or p60 to person 1.
Person 1 has other substantial income.
Person 1 collects cash in hand from person c and nobody keeps any accounts or issues invoices or receipts.
The issue arises when person 2 asks person 1 for income vouching for the separation case.
Therefore person 1 issues a hand written letter from person c understating person 1s income.
This can predicuce trial as income is understated.
Person 2 asks person 1 for proper vouching documents but it's likely person 1 will try to lodge accounts without backing invoices or receipts with revenue.
It is expected that the accounts are understated and person 1 in claiming income of €2000.
It is person 1s second year of trading.
Should revenue accept person 1s accounts in arrears, person 1 would have to pay 10% in arrears extra tax or €200.
This however isn't the correct figures with revenue. This solution however allows person 1 to state the income is much lower for separation court without any invoices or receipts supporting such.
How would a court deal with the issue considering trial date is set?
Two people are in a separation court case for over two years.
One person after a year starts a business and contracts work from person C.
Income to person C would appear to be €54000 from the public. This is cash in hand.
Person 1 who is the contractor is paid by person C and would get a substantial sum of the €54000 as there is only two of them in the business. (Well they are two sole traders).
Neither person 1 or person c are registered for tax and both are not registered as sole traders.
Person 2 is separating from person 1.
Person 1 gets person c to write a hand written note and claims that person 1 is an employee and not a sole trader.
Person c provides no wage slips or p60 to person 1.
Person 1 has other substantial income.
Person 1 collects cash in hand from person c and nobody keeps any accounts or issues invoices or receipts.
The issue arises when person 2 asks person 1 for income vouching for the separation case.
Therefore person 1 issues a hand written letter from person c understating person 1s income.
This can predicuce trial as income is understated.
Person 2 asks person 1 for proper vouching documents but it's likely person 1 will try to lodge accounts without backing invoices or receipts with revenue.
It is expected that the accounts are understated and person 1 in claiming income of €2000.
It is person 1s second year of trading.
Should revenue accept person 1s accounts in arrears, person 1 would have to pay 10% in arrears extra tax or €200.
This however isn't the correct figures with revenue. This solution however allows person 1 to state the income is much lower for separation court without any invoices or receipts supporting such.
How would a court deal with the issue considering trial date is set?