Ignorance of the law is harmful and not an excuse or even a mitigating circumstance. We often find that in financial matters – even when they are settled on private grounds, even in the immediate family, it turns out – and worse when over time – that even there the tax authorities have a vision. So we must realize that sometimes tax has to be paid even on wedding or sacrificial gifts. There are still other tax rules governing loans. In the latter case, there is also an aspect of debt repayment – when the debtor is reluctant to return the money or does not intend to return it at all, assuming that the dispute will remain in the family anyway, and will not knock on the record. at his door. So let’s get acquainted with these regulations – to find out the law now and “in advance”. So what should we do to safely borrow money from relatives and relatives?
It may come as a surprise to borrowers in their families and relatives to pay tax on the loan in some situations. If they do not, the tax office will first collect the tax itself, and then impose a fine of up to 20% of the amount borrowed! And then the borrower will not only owe the family, but also to the tax authority. So how to borrow in the family so that there are no problems with the tax office and even the record?
While getting a loan from a family member is quite simple in itself, it undoubtedly requires knowledge. Of course, it is known that not everyone is able to constantly follow changes in regulations, but before borrowing money, it is worth getting acquainted with their current version for your financial security.
A family loan is being treated as a great alternative to bank loans or loans in branch banks, not just because it is usually “cheaper”. It can also be faster (family doesn’t analyze our creditworthiness like banks), and in addition, we can often count on flexibility in terms and repayment dates.
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