In fresh months, taxation offices have begun intensive monitoring of donations made between household members. In view of the expanding number of cash transfers, fiscal control directed its attention to bank transfers, especially those that may exceed Tax exemption limits. Non-submission of a donation to taxation offices can lead to serious financial consequences, including the imposition of advanced tax, or even initiating proceedings caro-carb.
Obligations to donate
According to Act on inheritance taxation and donations, donations made by household members may be exempt if they meet certain conditions. First of all, the transfer money must be made into a bank account to avoid tax. The cash not transferred by the bank will not be exempt from taxation and the taxation office may consider it an unreported donation, leading to the imposition of fines and financial penalties.
In addition, according to regulations, if a donation exceeds a certain limit, it must be reported within 6 months since she was handed over. If this work is not met, the taxation office may impose additional fees and measurement taxes for failing to fulfil reporting obligations.
What are the limits of donations?
According to the law, there are 3 taxation groups to be allocated donation limits. Each of these groups has its own rules on taxation exemption or work to pay tax. Here are the details:
- Group One: Includes closest relatives specified as wife, kids, parents, in-laws, grandchildrenAs well as stepdaughters. The limit for this group is the amount 36 120 PLN. If the donation does not exceed this value, no taxation is required. However, it should be reported to the taxation office in order to avoid penalties.
- Group Two: This is simply a further family, including siblings, siblings Or siblings. For this group the limit is 27,090 zł. If this amount is exceeded, it is essential to pay a taxation of between 3% and 20% of the value of the donation.
- Group Three: Includes all another talented persons whose donation is not exempt from tax. The limit of this group is PLN 5,733. If this amount is exceeded, the taxation is between 3% and 20% of the value of the donation.
Example – advanced penalties for failure to submit a notification
To better realize the consequences Non-submission erstwhile the time is right, an example should be used. say the bride's father decided to give a bride and groom PLN 100,000 For their life together after marriage. If the couple doesn't study this donation to the taxation offices, not keeping the required time limits, the taxation office will be able to impose a taxation 20% above the amount 36 120 PLN (whose donation from closest relatives is exempt from tax).
In this case the taxation will amount to PLN 18,073 (20% x 90 363 zł). In addition, the office may impose fines and initiate criminal taxation proceedings For not submitting a donation within the required time limit. Therefore, it is worth being aware of these provisions and making any donations to avoid specified unpleasant situations.
How do I make a donation?
To make a donation to taxation offices, you should go to the right Chief of the IRS time 6 months since the transfer. papers must be prepared for notification, including printout from the bank confirming the transfer; and tax form.
The taxation office shall not require the talented to pay the taxation if the donation is within the limits and is notified in due time. In specified a situation, the office only record a donation, and the full procedure does not entail additional costs. Officials who are happy to aid fill out forms may help.
Tax control will check donations up to 5 years back
Tax control has the right to check donations made in the last 5 years. Officials may draw attention to bank transfers and see if the limits are exceeded. Even if the donation is tax-exempt, it is mandatory to study it in due time. Failure to comply with this work may lead to financial penalties and tax purposes.
It is besides worth remembering that the office takes into account all donations from the same person. If the limit is exceeded, the taxation office may impose a taxation even if a fewer smaller donations occurred in a given year.
More here:
Transfer of money to household and friends – IRS checks donations
