Did you receive a large sum of money over the holidays? It is not too late to declare it to the tax authorities and benefit from tax allowances.

Some people wrongly believe that it is better not to declare gifts of money (bank transfer, cheque...) to the tax authorities.

Quite the opposite! Not declaring the gift could turn out to be very disadvantageous.

First of all, there is a specific exemption for family gifts of money.
Each parent and each grandparent may give each child and grandchild a sum of 31,865 euros tax-free every 15 years, provided that the donor is under 80 and the recipient over 18.
However, to be exempt, family gifts of money must be declared within one month of the date of the gift.
This condition is strictly applied: if you miss the deadline, you lose the benefit of the exemption.

Gifts that do not meet the conditions of a family gift of money have no certain date if you do not declare them. As a result, the 15-year period after which the allowances that reduce, or even cancel, the tax are renewed will only start to run from the date on which the gift is disclosed.

If the gift is revealed by a tax audit and gift tax was due, late-payment interest of 0.2% per month and a penalty of up to 80% of the unpaid amounts may apply.
Conversely, subject to conditions (good faith in particular), late-payment interest may be reduced by 50% if the taxpayer voluntarily files a corrective return.

Finally, failing to declare the gift you received could put you in an awkward position if you later wish to use the money, for example to buy a property. You will then have to declare the origin of the funds, and the consequences of disclosing the gift will be the same as if it had been revealed by a tax audit.

If in any doubt, ask your notaire, who will tell you the right course of action.