How to avoid checks on cash withdrawals

Although increasingly difficult, there are useful strategies to avoid the Revenue Agencies checks on cash withdrawals. Banking movements and transactions are monitored more severely to avoid not only tax evasion. The UIF, the Financial Intelligence Unit, is alerted to the risk of smuggling, terrorism and money laundering. The use of cash generates apprehension in the tax authorities because for obvious reasons it is the path most practiced by those who evade taxes. Hence the conferral of greater powers to the FIU which verifies the watermark of banking operations and supervises the withdrawal of cash.

The “suspect threshold”

Maximum surveillance on the withdrawal of cash that exceeds the so-called “suspect threshold” beyond which, for banking practice, the report arrives. Avoiding checks implies above all the precaution of not making cash withdrawals over 5 thousand euros per month or 1000 euros per day. If the account holder is in the condition of having to make the withdrawal of such sums he is required to provide a justification.

He will then have to fill out a form in which to explain the reasons for the operation and deliver it to the banking institution which in turn will transmit it to the UIF. The information thus acquired is examined by the profitometer, the main tool to track any discrepancy between expenses incurred and declared income. Recall that the checks on the withdrawal of cash are triggered as soon as the expenses prove to be 20% higher than that reported in the tax return.

How to avoid checks on cash withdrawals

To evade the tax assessment, you must first move carefully, staying below the “suspect threshold”. It is advisable not to spend large sums of money to acquire assets that our income situation would not allow us to maintain. Which is to say that it would be completely reckless to withdraw cash to become owners of cars or real estate. Taxpayers wishing to avoid checks may also find it useful to keep invoices and documents certifying their purchases. Also for maintenance work, sums paid in advance to the dentist, repairs carried out by workers should request the tax document.

This is because, in the event of checks by the Tax Authority, it will be easy to document which intended use the cash withdrawn had. It is also advisable to defer the withdrawals over time and to divide them into modest amounts so as not to alert the tax authorities. As a consequence, purchases should also be made at different times in order to cancel the surveillance of the tax authorities. The transfer of cash to relatives and friends should also be avoided because the use of the same would not appear in the tax return. This eventuality could inoculate in the Revenue Agency the suspicion that he is indulging in an illegal investment.