Receiving a cash gift: Who pays the tax?
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adey
Apprentice
Joined: 07 Oct 2006
Posts: 8
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 Posted: 07/29/09 - 04:42 Post subject: |
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| Hello everyone. I have a sugar daddy who regularly make me a gift of cash. There are no traces or receipts of any kind, but recently he started to worry about the tax implications. Who should pay the tax on cash gifts? Should he, or should I? As I am unemployed and do not run any business, I do not have any regular income of any kind. My tax declarations are therefore fairly simple. |
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willey
Apprentice
Joined: 11 Dec 2004
Posts: 7
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| Posted: 08/28/09 - 02:45 Post subject: |
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| The answer is, the person receiving the tax. They are obliged to declare this gift as income on their tax return. Having said that, people receiving cash in hand usually do not bother to declare these gifts. They get away with this most of the time, although they are in fact technically breaking the law! |
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