The taxation office in Poland is increasingly taking action to control the bank transactions of citizens. peculiar attention is paid to the transfer of donations which may entail serious taxation consequences if they do not comply with the applicable rules. What steps should be taken to avoid fiscal control and penalties? Read how to safely donate and meet all formal requirements.
IRS and Bank Account Control
More frequent checks by the taxation office now include not only larger financial transactions, but besides regular banking operations, including donations. Although the transfer of money may seem a simple process to a loved one, the taxation office carefully checks whether the transaction has been carried out in accordance with applicable regulations. Mistakes can lead to serious consequences, so it is worth knowing the rules that will avoid problems.
Donations and Obligations related to IRS
Donations is 1 of the most common forms of transfer of assets among Poles. Often, however, those who transfer money to their loved ones feel that specified a transaction does not affect the work to study it to taxation offices. Unfortunately, that's not always true. In order for a donation to be tax-exempt, it must comply with certain conditions which may consequence in taxation control and sanctions.
How do I donate a donation to avoid punishment?
In order for a donation to be tax-exempt, respective basic principles must be respected:
- Bank transfer – Money should only be transferred through a bank transfer, which ensures transparency of transactions. Cash transfers may be contested by the taxation office.
- Documentation – Take care of adequate documentation of the donation, including retention of confirmation of the transfer. In the case of checks, the absence of evidence may give emergence to sanctions.
- Submission – If the donation does not exceed a certain limit, but requires notification, you should do so within 6 months from receiving it, utilizing the SD-72 form.
Donations limits in Poland – erstwhile can you cross the threshold without tax?
Under Polish law, each donation is subject to quota limits which depend on the degree of relation between the donor and the recipient. These limits are as follows:
- Group I (parents, children, spouse, grandchildren): the limit is 36 120 PLN.
- Group II (parents, in-laws, brother-in-laws): the limit is 27,090 zł.
- Group III (unrelated): the limit is PLN 5,733.
It is worth remembering that the taxation office has the right to control all donations made during the last 5 years, therefore, the sum of donations from the same individual during that period must not exceed the fixed limit.
What's the threat of inadequacy?
Failure to deliver donations can consequence in serious consequences. If a donation is not filed within the time limit or limits are exceeded, the taxation may impose:
- Donation tax – The amount of taxation is 20% from the value of the donation exceeded.
- Fine - For violating the IRS.
- Criminal and fiscal proceedings In utmost cases.
How to Avoid Fisk Problems?
In order to avoid taxation control and related penalties, it is worth following any simple rules:
- Make a donation agreement – It is worth preparing a paper confirming the donation, even for close household members.
- Make a bank transfer Make certain the money goes to the talented person's account.
- Make a donation – If the limit is exceeded, remember to submit a donation within 6 months.
- Keep Documentation – Keep confirmations of transfers and another papers that can be helpful in case of taxation checks.
Donation may be exempt from tax, but only if we meet all formal requirements. The IRS pays peculiar attention to bank transfers, so it is crucial that each transaction is decently documented and reported in due time. By following basic principles, we can avoid fiscal problems and enjoy peace while supporting our loved ones.
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