tax authorities it has cash in mind and scrutinizes actions taken with it: this policy, which closely monitors activities carried out with physical money, arms sales or embezzlement and fraud.
But fear not: keeping cash at home is not illegal, and you don’t have to pay any more taxes for it. Anyone who wants to keep their savings at home in the safe or ‘under the bed’ in public can do so without any problems.
However, for everyone’s safety, Tax Administration It pays special attention to the recording of all cash movements: Thanks to automatic criteria, Treasury officials keep track of all transactions made with cash that meets a number of requirements.
What transactions does the Treasury monitor with cash?
Tax Administration There is a very simple method to find out what transactions we make with cash: According to Article 93 of the General Tax Code, all banks are “obligated to submit all tax-related data, reports, records and supporting documents to the Tax Administration”. deducted from their economic, professional or financial relations with other persons related to the fulfillment of their tax obligations”.
For this reason, financial institutions notify the Treasury each time they record a transaction that amounts to a withdrawal or deposit of more than €3,000, or any transaction involving a €500 bond.
Information to be transferred by the bank to the tax office When any of these alarms are “turned off”, it changes to “current account movements, savings and time deposits, loan and credit accounts, and other active and passive transactions”.
How can we avoid being the center of attention of the Treasury if we save cash?
The most effective ‘shield’ against Treasury control is to prepare a good income statement: that is, to include all the money we keep at home in the annual budget and present it to the Treasury, explaining its source. appropriate tax burden.