Current account: Here are the 5 movements that the tax authorities control!

BY ANTONELLA TORTORA

CURRENT ACCOUNT OF THE REVENUE AGENCY

Often a very small detail escapes, our current account is fully visible and accessible to the Revenue Agency. But, it is also true that not all work activities give rise to controls. There are some particularly "free" activities, while others are much more restricted. A brief guide on the main movements of money on the current account that stir the tax authorities. We will explain what are the movements on the current account that could trigger a tax assessment.

It is well known that the tax authorities are always lurking, then when it comes to the current account, the gambling on movements could generate no small headaches. On the other hand, we have well understood that the tax authorities are interested in large flows of capital movements, they pay much more attention to the amount of money flowing in Italy and to transfers abroad. However, the small escapes are the most annoying or, better, where the unexpected blows of the tax authorities come from. It is no coincidence that several self-employed workers for a payment not adequately justified with "proof", were beaten with very substantial penalties.

It does not appear impossible to identify the movements of money on the current account that put the tax authorities into turmoil. Know that the Revenue Agency knows your pockets very well, it knows every penny that passes through your current account, thanks to the availability of the Tax Relations Register.

Yet, despite everything, many readers have asked to know which category of taxpayer can end up more in the IRS crosshairs, we are sorry to confirm that no category of taxpayers is more subject to controls than the others. The Inland Revenue analyzes all current accounts without discrimination or, better, carefully observes bank deposits, ready to take action in the event of "suspicious" movements. This is why a tax assessment can take place without warning.


Often a very small detail escapes, our current account is fully visible and accessible to the Revenue Agency. But, it is also true that not all work activities give rise to controls. There are some particularly "free" activities, while others are much more restricted.

A brief guide on the main movements of money on the current account that put the tax authorities in agitation We will explain to you what are the current account movements that could trigger a tax assessment.

Current account: when does the bank transfer act as a spy for the tax authorities?

The fundamental element on which the main pivot of checks on the current account is based is aimed at a simple rule:

all movements of money that are payments or transfers can generate a dispute by the Revenue Agency.

Which, starts with the presumption of finding itself in front of an undeclared income until proven otherwise. In this case, if the taxpayer fails to justify the origin of the money, the Entity issues the tax assessment.



At this point we just have to sink our roots on bank transfers. Technically, wire transfers are a visible tool that allow money to be transferred with a reason. But, what happens if you receive an "unexpected" transfer to your bank account? Besides jumping for joy, you are faced with two simple choices, such as:

a) enter the amount of money from the transfer in the tax return, so as to declare it to the tax authorities;

b) justify with proof that the amount of money of the transfer is exempt or, still not taxable, withholding tax regulated by article 23 of the Presidential Decree 600 of 1973.

In the absence of justification, the Inland Revenue taxes the money even in the event that it is money from work performed.

Current account: what are the sums of money that must not be declared?

Not all sums of money are subject to the obligation to report to the tax authorities. There are sales that exclude the obligation, we are talking about the sale of used items such as furniture, clothes, but also cars. Consider, for example, a game win, on which the with holding tax is spread.



The same discourse follows the donations that can be traced back to the spouse, parents and children. In this case, a 4% tax is applied on a value of 1 million euros. While, in the presence of a donation between brothers and sisters, a tax of 6% is applied on a value greater than 100,000 euros.

Expense reimbursements are excluded, such as travel for work, compensation deriving from non-pecuniary damage and all elements that do not compensate for the loss of income are included, as income is subject to taxation.

The transfer must be justified with certain proof that excludes the tax return and, therefore, falls under the tax-free or, still not taxable, withholding tax items regulated by Article 23 of the Presidential Decree 600 of 1973. The importance of the proof is the certain date. This is why the presence of a registered contract, a private agreement and so on can be relevant.

Among the transfers, the (perhaps) most dangerous one is the transfer abroad, especially of a very important amount. These money movements (almost) always alert the Revenue Agency, which analyzes them as risky operations. It is possible that the bank, in full compliance with the anti-money laundering rules, requests the customer detailed information about the transfer. In this case, the omitted or unclear justification leads the bank to report the movement of the current account to the Revenue Agency which proceeds with a tax assessment to verify the presence of any evasions.

Current account: which payments endanger?

Payments of cash into the current account could trigger the tax authorities. As anticipated above, the Tax Authority starts with the presumption that the payment of money is outside the tax return and, therefore, that it is money to be taxed.



The taxpayer bears the burden of proof. In other words, it must justify the origin of the money paid into the current account, that is, if it derives from an exempt source or, still not taxable, withholding tax regulated by Article 23 of Presidential Decree 600 of 1973. It is necessary to indicate the presence of a deed bearing a certain date from which the sums to be paid are shown.

Current account: what is the limit for transfers between husband and wife?

In normal life, it seems customary if not ordinary for a husband to make money payments to his wife's checking account. But, the opposite can also happen. These are rules in keeping with marriage or cohabitation.



However, in the presence of very substantial exchanges of money and with an increasingly frequent frequency of transfers or transfers, they could alert the tax authorities, especially if one of the spouses has no source of income and, at the same time, has a wealthy current account. In these cases, the Inland Revenue could attribute the origin of the money in one of the spouses' current accounts to deriving from illegal income movements.

It is no coincidence that the judicial reports are full and full of investigations carried out on the movements of money on the current accounts of the spouses. That is why the Revenue Agency is most often faced with these conditions and sent with an assessment.

Current account: watch out for periodic transfers

The money produced by undeclared work is sanctioned by the tax authorities as illegal, it can derive from actions attributable to the employer, but the responsibility of the employee who receives sums of money without declare them for tax purposes is not excluded.



In the presence of a movement of money on the current account, therefore of an accounting movement supported by a bank transfer, or, by a payment. The tax authorities identified the flow of money could activate the tax assessment. The absence of an employment contract for all legal purposes is not beyond the control, indeed the contract could be irregular and the tax authorities would start immediately with the presumption of being faced with a "de facto" contract.

It should be emphasized again that all movements of money whether they are payments or transfers can generate a dispute by the Revenue Agency. Which starts with the presumption of being faced with undeclared income until proven otherwise. The taxpayer is entitled to justify it through proof with a certain date.

On the other hand, there is no amount that you deviate from tax checks. Each decision is placed in the regulatory hands of the competent Revenue Agency for each office. It is assumed that even a payment of a few hundred euros will alert the tax authorities. It is no coincidence that the regulations include in checks the payments of money to the current account of small amounts, especially if consecutive. However, the practical form may be much slower than the theory.



In other words, if you receive a bank transfer or pay a sum of money worth less than 200 euros to your current account, we are talking about a one-off fee without having the possibility to justify the movement on the account, it is possible that the risks are eliminated.

ANTONELLA TORTORA




Accounting analyst, born in 1971.
Having obtained the specialization diploma of Accounting Analyst, at the Professional Institute for Commerce S. Rosa di Nola, I collaborated with various newspapers. I am currently a general information editor on pension, current affairs, taxation and employment issues. I have a pure orientation on tax issues and I have chosen to help readers, with my words, to find a simple path in the complex labyrinth of legislation. The truth! I love to write, every news is worth telling, with heart, emotion and passion.