What does the tax authorities control?
When the need arises to have a lot of cash at home, it is customary for many to make close withdrawals to their checking account. As we have repeatedly stressed, tax controls on taxpayers’ money are on the agenda. For this reason, it is always good to adopt an exemplary conduct that does not lend itself to possible suspicions from the “controllers”. Regarding the close withdrawals on the current account: what is the risk? Generally, the tax authorities are not particularly interested in how we spend our savings, as long as they are illegal expenses. The point is that it is important that the money spent is regularly declared.
For this reason, the natural conclusion would lead the reader to think that there is no risk in making close withdrawals on the current account. However, the answer is never that simple.
What is at risk of withdrawing very close cash
Withdrawals close to the current account: what is the risk? According to the provisions of art. 3 of the UIF decree of 28 March 2019: bank and postal intermediaries are obliged to provide data relating to movements in excess of 10,000 euros per month. This limit imposed by the latest legislation does not already aim to stem any tax evasion. On the contrary, the limit opens a window of control over alleged criminal actions by taxpayers such as: smuggling, money laundering and more.
This means that the taxpayer, as long as he is not an entrepreneur, is free to make close withdrawals on his account. However, if it exceeds the limit of 10 thousand euro per month, then the bank will report the conduct to the UIF, that is the Central Banking Risk Center.
What risk for professionals and entrepreneurs?
As for professionals, these are assimilated by law to ordinary citizens, for which the above rules apply.
In the case of entrepreneurs, however, the restrictions are more marked: for them it is not possible to make withdrawals in excess of one thousand euros per day and 5 thousand per month.