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Tax Engineering

How can I deposit money to my bank account?


Question

Hi, how can I deposit money to my bank account safely? That is, I have x money from a sale which I have declared for much less value than it really was. That money, how can I deposit it to my offshore account, for example? A greeting

Answer

Is it legal to deposit cash to a bank account? What are the advantages and disadvantages of depositing money to your bank account? Depositing cash to a bank account is very common in Latin America since it is very usual for people to collect their payroll or make payments in cash for the mistrust generated by banking systems and governments. Therefore, it is very common in Latin America to open a first current account with 40 or 50 years of age. 

How can you deposit cash? The process of depositing cash is very simple and fast, you just have to go to a bank and deposit the money in the bank. Depending on the amount you want to credit, the bank can request contracts to verify the origin of the funds and its possible relation to any illegal activity such as money laundering. 

Who can deposit the money? The client in person or a lawyer to whom the client has given the power can deposit the money. 

Is it legal to deposit cash to a bank account? Yes, it is completely legal to deposit your money. There are no laws that prevent doing so and it is the client who decides when, where and how to do it. There are also no laws that oblige you not to deposit money, that is, a natural person has the right not to have any bank account opened in a bank in his name in his life. But this has its advantages and disadvantages.  

The main advantages of having your savings deposited to a bank account are:  

  • If you deposit the money in a prestigious and, backed by the central bank of your country bank, in case of bankruptcy you wont have problems recovering your money since the deposits are assured. 
  • When you have your money deposited to a bank account you can have access to debit or credit cards, savings accounts, investments in the stock market and possibility to make international and national transfers to other bank accounts. 
  • You can withdraw the money at any time and at any place from your bank account. 
  • You can pay bills quickly and without displacements.

The disadvantages of having your money in a bank account and not in cash are the following:  

  • If your tax agency is aware of your bank account you will have to pay taxes for all the transactions you make. 
  • In case of lawsuit, your bank account can be seized. 
  • If the bank where you have your account does not have stipulated banking secrecy, the information about your transactions and bank statement can become available to third parties.

The decision of depositing the savings in a bank account or not is on the client but if you have the money in a very safe place it is best to have it closer to yourself and under your own control. With the current economic crisis we see how many banks went bankrupt and when the governments do not rescue some of them the money gets lost. We recommend that you get informed about financial policies established by your government for banking guarantees before depositing your savings in a bank account.



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