Tax authorities have tightened their oversight of citizens’ cash transactions. This includes, among other controls, limiting the amount of cash that can be deposited and taken from bank accounts.
Banks are now compelled to notify every cash transaction over €3,000 to the Tax Agency. Similarly, any transaction involving €500 banknotes must be notified to the tax authorities, regardless of the value.
On the other hand, even if cash withdrawals do not exceed 3,000 euros, if they occur on a regular basis, they may catch the notice of the authorities, forcing them to launch an inquiry.
Types of sanctions that the Treasury may impose
In all of the aforementioned instances, if the Tax Agency or financial institutions have grounds to suspect, they may commence an investigation into their clients’ bank transactions.
If, following the review, they believe that any regulations have been breached and that these operations have no basis, they may impose a variety of economic sanctions:
Minor penalties: Up to 3,000 euros for irregularities. The fine might be as much as 50% of the unreported amount.
Serious Penalty: For offences that exceed €3,000 with concealment. The fine ranges between 50% and 100% of the amount.
A severe penalty: If the undisclosed sum exceeds €120,000 and there is evidence of money laundering. The fine can be up to 150% of the amount.
Author: Derek Appleton
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