Does AE check your account? Here’s how to avoid problems with tax authorities

Now the revenue agency has the “power” to control anyone. Those with a checking account in cash may also have to explain the movements. But there is a system to avoid problems with the tax authorities.

The state’s ability to control illegal businesses is more than fair. Let’s fight illegality and tax evasion too. Everyone who works honestly, no matter what income he may receive from it, has the right to protection. However, there are cases when the alarm bell is sounded even without making “nothing wrong”. This is the case with funds remaining in the checking account. The revenue agency often conducts audits. In order not to have annoying days lost explaining your movements, you can adopt “strategies”. Of course, we always talk about legal procedures.

The current account is a channel that is subject to verifications by the tax authorities, if something does not add up. On the other hand, checking account is the means by which a private person, professional or company manages their personal or company budgets. There are, of course, no limits for bank deposit. In the account there can be zero euros such as 500 thousand. Of course, managing an account has an annual cost, so even those who own an account but don’t use it face fixed costs.

Moreover, after a certain liquidity limit, along with the costs of keeping the account, you also risk paying a stamp duty. This tax must be paid if the average annual stock exceeds 5,000 euros. But when is it better not to leave “too much money” in the account?

To avoid problems with the tax authorities, how much money is better to keep in the account?

Starting with the assumption that the days when keeping money in the bank yielded interest are now gone, let’s find out how best to move around to avoid problems. The revenue agency, if you decide to conduct an examination, transmits certain data. For example, it analyzes both the incoming and outgoing inflows, cash withdrawals, and the difference between the opening and closing balances for the year. The inventory is also checked, which, we remember, is the result of a precise arithmetic operation and not the result of the balance.

To avoid overpaying the amount of money in the account, it would be better to make the calculations. Schedule semi-annual or annual expenses and leave a little more than is required to pay the filing expenses. Bills, rent, telephone subscriptions, etc. It is also advisable to account for some unexpected expenses, and leave enough availability in the account so that it does not affect the credit line (when present).

Moreover, it must be emphasized that having “too much” money in the account also exposes to frauds and attempts – even by the banks themselves – to allocate that money to investments that are not entirely “safe”. In short, those who do not understand the matter are better off leaving it or relying on a professional. If you really can’t help leaving a lot of money in your account, the idea might be to have more than one, with different banks. Although in this way you are exposed to higher administrative costs, you can avoid “random checks”, but also fraud and Account taxes.