Beware of fines and penalties from the tax authority and revenue agency for withdrawing from the current account and using cash

When we talk about deposits or withdrawals from Cash from our c / c There should always be basic supporting elements. The reason is due to the need to avoid evasive actions against the tax authorities, or worse still, the assumption of illicit funds.

From this perspective, the introduction of a complete system of rules from 1991 to today should be read with the aim of limiting the circulation of cash.

Think, for example, on an introduction Credit tax On costs related to electronic payments. In the same direction, cashback and super cashback have been introduced to expenses with electronic gadgets. Last but not least is the receipt lottery, even the obligation to use the POS.

However, be careful not to confuse the two different aspects that contribute to the same goals. In other words, it is necessary to distinguish on the one hand between operations received and issued from our current account, and on the other hand, the intended use of cash withdrawn.

Let’s get to the heart and explain why you need to pay attention to fines and penalties from the IRS and Revenue Agency for checking account withdrawals and cash use.

What happens in case of withdrawal from the current account?

We would like to point out right away that there is no limit imposed by law with regard to withdrawing cash from our current account.

In fact it happens that banks have to transfer certain transactions, both inbound and outbound, to the UIF (Financial Intelligence Unit). Certain types of checking account withdrawals activate reporting, even when there is no statutory limit. The tax authorities can then take charge of the determination and activate the assessment of the presumption of evasion.

There is also some kind of oversight, with mandatory reporting to the UIF, for all withdrawals exceeding € 10,000 in total during the month.

These are not prohibited operations, and in reality they do not fall under the category of suspicious transaction reports. However, they are processes that must be subject to any inspections, to avoid potential illegal activities that must be reported to the Office of the Prosecutor.

We better understand why it is necessary to pay attention to fines and penalties from the IRS and Revenue Agency for checking account withdrawals and cash use.

In the case of commercial operations, withdrawals sensitive to a potential control are those whose amount exceeds 1,000 euros per day or 5,000 euros per month.

If you are a private citizen, the limits are set by the regulations of individual credit institutions. However, withdrawal limits generally range from 500 to 1,000 euros per day and from 2,000 to 3,000 euros per month.

In the case of exceptional transactions, for an amount greater than that taken by the bank, it is clear that the latter will not be able to prevent the withdrawal. However, the credit institution will be obligated to request clarifications regarding the purpose of the withdrawal by the account holder. At this point, the bank will decide whether or not to send the documents to the Financial Intelligence Unit.

Reducing spending and use of cash

If we withdraw the maximum amount that the bank allows, say 3000 EUR / month, then the law makes it impossible to use it in one purchase (or donation or loan). That is if the deal exceeds € 2,000 (for transactions until December 31, 2021). In this case, in fact, it is imperative to use traceable tools such as credit or debit cards, checks or wire transfers.

From January 1, 2022, cash transactions permitted must have a maximum limit of € 1,000. This is why we must pay attention to fines and penalties from the IRS and the Revenue Agency for current account withdrawals and cash use.

Tax checks from cash withdrawals

Everyone who works as an employee, unemployed or retired, in the event that he withdraws 5,000 euros from his current account, which he will spend in one day, he will not find a prohibition from that. But it can be subject to checks by the Revenue Agency, along with a tax assessment, through the Redditometer tool. In this way, the expenditures incurred are linked to the authorized income, in order to assess their conformity and conformity.

For business owners, on the other hand, there is an assumption. Funds withdrawn from the current account without specific reasons are subject to tax as they are assumed Used for investment.