May 20, 2022

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The common current account in the tax authorities’ camera lens: let’s be clear

The joint current account is subject to verifications by the tax authorities. Who is the money really? Are the applicable taxes correct? Let’s solve doubts.

Spouses, relatives and company members can open a joint account. What are the rules to follow to not risk penalties from the tax authorities?

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over there Shared address Provides for the signing of a contract between Many interested parties A credit institution. The ownership percentage is up to 50% for each owner and each owner must make payments to the joint account so as not to risk being under examination del Fisco to determine who the money really belongs to. The account is formatted to allow for joint management of expenses and savings. Each account holder has the right to do individual operations A bank and each holder is considered debit or credit by reference to the account balance. However, some details may lead to verifications by the revenue agency to the point that a Supreme Court overturn changes the current account setup.

Checking account and postal book, keep an eye on the movements: there is a limit you cannot cross

Common Current Account, Headquarters

To understand the changes implemented by the Supreme Court, it is necessary to begin with an examination of the characteristics of the common current account. There are different types of joint accounts. There are these to separate signature Which allows each holder to work separately and in the same way I signed up The presence of all current account holders is required to carry out the transaction. A third classification arises from the union of the first. In this case, the bearers specify which operations must be performed with a separate signature and which operations have a co-signature.

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Current Account Freezing: Reasons for the Bad Surprise

All joint accounts are subject to civil law With Articles 1298 and 1954. The law defines the characteristics of the accounts and regulates the more private aspects such as the transfer of funds between their owners in case of death One of them, the consequences Divorce or imprisonment. Situations that have occurred over the years have led the Supreme Court to overturn the joint accounting settings of the accounts.

Directions to find out

Common current account, the wording indicates that the money in the account is in common property between owners. The thought was correct until the Supreme Court overturned the directive by order of Last September 22, 2021. The change was necessary after the revenue agency verified the couple’s joint account. According to the agency, money that the wife pays and then withdraws should be taxed on the initiating spouse’s head.

Joint account: the operation that cannot be performed at all

The reason lies in the fact that the amount was not a donation to the partner of 50% of the total just for a joint account. When the source is only one-sidedly confirmed, it is necessary Shares are subject to personal income tax. The fact that the current account is joint does not lead to lower taxes. The Supreme Court agreed with the tax authorities that whoever pays the money owns it, while membership belongs to whoever uses it to cover expenses and make withdrawals. This is all to emphasize how the amounts are subject to personal income tax as they accumulate with taxable income.

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