Parking 100k in someone else's account to avoid tax

A family member of mine is less than bright. Let's call him "tweedledum" .

Tweedledum accepted to receive 100k from a "friend" and keep it in his account for a period of 6 months. In return for this, tweedledum received 7k in cash.

Tweedledum has since returned the 100k and received the 7k cash.

Is tweedledum now liable to pay income tax on that 100k?

I'm really quite concerned about him. He's not a criminal, just criminally stupid....

 

It all depends. It sounds like income. What was the 7k payment for.

Worst case he has hidden taxable money from other people and can potentially be charged as assisting someone to defraud the commonwealth and criminal convictions under the anti money laundering act.

In that case he can feel comfortable that 7k will pay for a lot of soap.

 

Of course.

Any money laundering breaches?

 

Thanks so much for the quick response!
The 7k payment was for "looking after the money".

I've got no idea where the 100k was originally from.

I will try and find out..

This whole thing stinks...

 

7k for looking after money. Sounds suspicious.

Sounds like a payment for assisting in laundering money. Severe criminal charges await.

And seriously 7k for looking after money for 6 months and tweedledum didnt think that was a little strange ? Department of public prosecutions will roast him over the hot coals.

Get legal advice asap.

 

He could be potentially taxed on the whole $100k as income.

 

If Austrak report the deposit you could be asked to explain the origins. Criminal proceeds of a crime could implicate you even if you dont know how he obtained it. You reasonably suspect its not piggy bank savings I guess. After legal defence costs you could be out of pocket a hundred grand to defend charges of money laundering, proceeds of crime, and many other potential concerns. If your friend has a taskforce monitoring him they may already have you in their sights...Many criminal investigations are slow and patient and allow the cops to gather intelligence. One day you could be woken early...

Then there is the personal risk issue. One day he may not trust you and...You end up like Jamie Gao. (Google it)

I would speak to a solicitor to address how you can step away from this issue

 

How was the 100k received? If by bank transfer, even more suspicious.

 

This would be the least suspicious way.

Imagine it was cash.

I used to work in the AFP and people were depositing $500k cash in accounts, the dumb ones make multiple $9900 deposits. every week someone would be stopped at the airport with up to $800k cash in a suitcase. When you have large sums of cash you need to get it into the banking system somehow. Otherwise you have to spend it slowly on meals, parties and sex workers - and tradesmen for the improvement of properties.

 

Probably is now.

Tax man is just one of the concerns.

Normal people don't pay you $7K for something like that - or trust you with their $100K.

 

With the relaxation of small bar/ restaurant lic in QLD there has been an increase in ownership in this area. Where people used to use tattoo shops then barbers to turn dirty cash to clean (even though it means paying tax on it) it was far too easy for police to count patrons entering etc and workout legitimate income or see tax returns and workout that the foot traffic through the place must have been massive. With bar restaurant the downside is that Mr and Mrs Dodgy may need to return the empties of expensive bottles of booze they are drinking to help flush money and eat expensive cuts of meat and fish at home. Still doesn't flush heaps but easy to put quite a few K a week through.

 

Oh dear. Now it's in the public domain.............. AND you know about it.

 

What? The internet isn't anonymous???

 

Ha! I'm not too worried. Tweedledum was interviewed today and is cooperating with the authorities and now has a lawyer. He's going to be in trouble but far less than if he was playing games.

Big thanks to everyone for the advice!

 

If he spilled the beans voluntarily, I don’t think his problems will be tax or legal problems anymore. Might have an issue with the people hiding 100k in his account though....
Guess not everyone needs knee caps though.

 

"Only two things are infinite, the universe and human stupidity, and I'm not sure about the former." Albert Einstein.

Seems the member of your family may be proof of that observation.

 

I hope he did those things in reverse order!

 

I believe you are correct. His stupidity is beyond reproach.

 

Money Laundering | Commonwealth Director of Public Prosecutions

"dealing in proceeds" ...applies to tweedledumb and the other party. Potential instrument of crime is slightly worse depending on the state of mind of the parties. eg criminal, reckless or negligent...Negligent is just max 4 years gaol

 

Yup. But it turns out it is less serious. It is by no means good but it could have been a whole lot worse....

The authorities aren't after him. There's a much bigger person of interest...

 

Have that in writing ?

They say that then charge him later after co-operating and talking, without seeking advice from a lawyer. Maybe a lesser charge of consipracy.....Or is that worse ?

Rule one of such enquiries. Right to remain silent. Then get legal advice. I would argue 50% of taxpayers with a major issue dont do it and have started to dig their own grave before they are reminded that silence is a right, not a option. I wont even speak without their lawyer checking my response.

Have seen a few clients represented and first question lawyer asks is a written indemnity in exchange for co-operation.