Wise during KYC asks me about money sent from my company account to...my mother.

[JackAlabama]

Why would the mom pay the income tax if the taxes have already been paid by the OP? Even though they're zero in Dubai.

Or rather: how many times the taxes have to be paid in this case: 1 or 2? Is it OP who has to pay them off the amounts sent to his mom? Or his mom? Or both?

Money from a business comes in, the assumption here is work and hence tax gotta be paid in the communist states of Europe.

 

[JamesDonkey]

Its an issue because he I sending it from his company. If he had just paid out dividends/salary to himself, before sending it to this mother then it would all be fine


Cause handing out money to your mother with company money isn't a business related expense. Even if the company have 0% corporate tax and it "doesn't matter" in theory. And if the company ever went bankrupt the curator would sent mummy a demand letter as the first thing for her to pay all the money back.

And also crazy your moms bank never questioned a thing. I sent 1000 EUR to my little brother from a personal bank account in Malta and his bank called him asking about it.

Interest & dividend tax also exists. I bet OP/his mom has not paid any of those

How about this hypothetical situation:

- the mom left Italy several years ago
- she registered in Italy as non resident
- she continues to use her italian bank account
- she lives in a country with zero- or territorial-based taxation, for several years

Would the fact that she receives money to her Italian bank account, from his son's business, make her somehow liable to pay taxes in Italy?

Or would she have to pay, including zero , taxes in her present country she moved to?

Generally speaking, without nuances.

 

[JohnnyDoe]

How about this hypothetical situation:

- the mom left Italy several years ago
- she registered in Italy as non resident
- she continues to use her italian bank account
- she lives in a country with zero- or territorial-based taxation, for several years

Would the fact that she receives money to her Italian bank account, from his son's business, make her somehow liable to pay taxes in Italy?

Or would she have to pay, including zero , taxes in her present country she moved to?

Generally speaking, without nuances.

Either she is resident in Italy or she is not.
If she is registered in the AIRE database and is living outside Italy, she might be fine, assuming that the GdF is fine with that.

 

[uplana]

Money from a business comes in, the assumption here is work and hence tax gotta be paid in the communist states of Europe.

Did you tell them that it is a simple corporate loan you gave her? It is legal in most European countries to do so, at least the bank or Wise in this case should not interfering.

 

[JamesDonkey]

Either she is resident in Italy or she is not.
If she is registered in the AIRE database and is living outside Italy, she might be fine, assuming that the GdF is fine with that.

As I've said:

"
- the mom left Italy several years ago
- she registered in Italy as non resident (for tax purposes)
"

Would she have been a resident in Italy?

 

[JohnnyDoe]

As I've said:

"
- the mom left Italy several years ago
- she registered in Italy as non resident (for tax purposes)
"

Would she have been a resident in Italy?

If she is not in Italy and is registered with the AIRE, then she should worry about the tax authorities of the place where she currently resides

 

[karishi]

You really need to hire a good Italian accountant and be prepared also to hire a tax lawyer. The mum’s bank has submitted a suspicious transaction report, the GdF most probably is looking into it and is preparing some nice surprise.
Btw, those who participated in the “scudo fiscale” are in a special watchlist…

This has been going on for 4 years. No transaction was above the 10k Euro mark which triggers automatic reporting to tax authorities and currently SVG is not blacklisted in Italy. Anyway, now we have a consultancy agreement, in case she will be fined for not declaring 15k Euro of income, given the fact that a civil proceeding takes 10 years in italy usually they don't start it for such low amounts of money, but who knows?They take years to do anything might turn up down the road. My mother has an annual income from public pension which is 70k pre taxes and 15k pre taxes from renting one of her houses, so she already pays a lot of tax, although of course that's not a good excuse for anything.

Well that is what I did to the extreme. Banks are not what they used to be due to compliance pressures they are put under. Unless you are doing lots of currency conversions etc then no single client is of any economic value to them and can be disposed of as and when they sniff any risk.

Let us know the end result in any case.

I am doing a lot of currency conversions, I receive money in USD, EUR and GBP from different clients and converting them in AED, EUR, CHF, Norwegian Crown, Hong Kong dollars, Thailand Bhats and so on, I live as a digital nomad and thus I'm a good client.
In any case I uploaded all the docs they requested ( IDs for Beneficiary Owners and Directors, which is my Emirates ID and the Service Agreement with my mother that I backdated to 2018 for business development and mentoring services ) and they said that they checked the documents and all is good.

 

[KDX]

In any case I uploaded all the docs they requested ( IDs for Beneficiary Owners and Directors, which is my Emirates ID and the Service Agreement with my mother that I backdated to 2018 for business development and mentoring services ) and they said that they checked the documents and all is good.

So everything alright now?

 

[Martin Everson]

I am doing a lot of currency conversions, I receive money in USD, EUR and GBP from different clients and converting them in AED, EUR, CHF, Norwegian Crown, Hong Kong dollars, Thailand Bhats and so on, I live as a digital nomad and thus I'm a good client.
In any case I uploaded all the docs they requested ( IDs for Beneficiary Owners and Directors, which is my Emirates ID and the Service Agreement with my mother that I backdated to 2018 for business development and mentoring services ) and they said that they checked the documents and all is good.

Cool then thats good news . Your obviously have economic value to them. But lets not speak of service agreement .

 

[karishi]

So everything alright now?

Yep, they answered:

Hello XXX,

Thanks for sharing all the information we requested. We’ve now confirmed your details and your account is ready to use.

 

[karishi]

How about this hypothetical situation:

- the mom left Italy several years ago
- she registered in Italy as non resident
- she continues to use her italian bank account
- she lives in a country with zero- or territorial-based taxation, for several years

Would the fact that she receives money to her Italian bank account, from his son's business, make her somehow liable to pay taxes in Italy?

Or would she have to pay, including zero , taxes in her present country she moved to?

Generally speaking, without nuances.

My mother should have paid taxes on the money I sent her, no doubt about it, but in Italy ( and I think in all europe ) the tax authority doesn't get notified about transactions below 10k EURO. so 4 transactions a year of around 5k do not trigger any automatic alarm. And she is 73, getting an insane amount of money from the state which is taxed. When she bought a house, the tax authority called her almost immediately, because that's a trigger, but she had done the fiscal shield so her money was clean.

 

[sonato]

My mother should have paid taxes on the money I sent her, no doubt about it, but in Italy ( and I think in all europe ) the tax authority doesn't get notified about transactions below 10k EURO. so 4 transactions a year of around 5k do not trigger any automatic alarm. And she is 73, getting an insane amount of money from the state which is taxed. When she bought a house, the tax authority called her almost immediately, because that's a trigger, but she had done the fiscal shield so her money was clean.

well well and what is your situation right now, I mean, what are you going to do?

 

[karishi]

well well and what is your situation right now, I mean, what are you going to do?

Situation is ok, I sent a service contract dated bacl to 2018 and all was good.

 

[bonox]

Holy crap, the Guardia di Finanza is watching you! And is likely reading this too.

why do you believe that, and if so, so what?

Just make some bulls**t contract. I feel like that's what they just want to see so they can cover their a*s in case anything goes bust on your end.

welcome to 2022, the age of compliance hell

it can indeed work... but let a BS lawyer draft and stamp it.

 

[JohnnyDoe]

why do you believe that, and if so, so what?

They spend most of their days browsing the web in order to find their next victim. Then they prepare the “operation” and one day, in the early morning, show up at the victim’s house to execute it.
They love to harass naive and defenseless people.

 

[KDX]

They spend most of their days browsing the web in order to find their next victim. Then they prepare the “operation” and one day, in the early morning, show up at the victim’s house to execute it.
They love to harass naive and defenseless people.

I doubt this.

However, I think you are correct about the "They love to harass naive and defenseless people." part though. In many countries this is the case.

 

[JohnnyDoe]

I doubt this.

I saw them with my own eyes

 

[KDX]

I saw them with my own eyes

Looking at random posts on the internet? Just like that? Orrr..?

 

[JohnnyDoe]

Looking at random posts on the internet? Just like that? Orrr..?

Browsing forums for “collecting evidence”! And if they don’t find any, they will go as far as creating it…
The GdF is also known as “la benestante” (“the wealthy one”), Italians will understand why.

 

[KDX]

Browsing forums for “collecting evidence”! And if they don’t find any, they will go as far as creating it…
The GdF is also known as “la benestante” (“the wealthy lone”), Italians will understand why.

Sounds like the GdF is a kind of "legal mafia"...