buying used car using cash

[Riksta]

Originally Posted by lownloud

There is a system of reporting it in the States but as far as I know there is none here.

I think you'll find there IS a system in Australia.

http://www.austrac.gov.au/2a.html

A report of a significant cash transaction must be made on AUSTRAC Significant Cash Transaction Form 6 where the cash dealer is a party to a significant cash transaction.

What is a Significant Cash Transaction?

1. A significant cash transaction is a transaction involving currency (ie., coin and paper money of Australia or of a foreign country) of the equivalent of $10,000 or more that a cash dealer has with a customer in Australia.

[Mr Cube]

I wonder if this include if you sell your own car and the person pays you cash.. Do you need to declare where the funds came from in your pocket. Ie you sold your Falcon.. But what if the cash was gained illegally by the other party? Are you at fault.. Assuming you don't know the other party you just placed an For sale ad and this person comes to buy you car?

[Riksta]

Originally Posted by Mr Cube

I wonder if this include if you sell your own car and the person pays you cash.. Do you need to declare where the funds came from in your pocket. Ie you sold your Falcon.. But what if the cash was gained illegally by the other party? Are you at fault.. Assuming you don't know the other party you just placed an For sale ad and this person comes to buy you car?

I don't think you do need to declare that as such, since I believe only banks/registered businesses are classed as "Cash Dealers".

However, if you go to deposit the amount in your bank account then the bank will have to report it. If they were then to chase you, and you still had the other guy's details and could prove it was just through an ad in the local paper or whatever that you came into contact with him, I don't think there would be too much problem. Instead of cash he now has a car, they'd more likely confiscate the car from him than the cash from you.

[Mr S'side Ford]

from a legal point of view, with the new Anti Terrorism and Anti Money Laundering Laws brought in from 12 December 2007, ANY amount of cash over $10000 is to be reported using the correct form (SCTR Form 7). Part of the Financial Reports Act 1988 (FTR Act)
As far as Car Dealers being less than scrupulous that is far from the truth and if you do find a car dealer like that, would you really want to hand over your hard saved up cash too???
As far as a better deal for cash that is not true as most dealers would rather finance your new car than accept cash for it.

hope this helps.

[paul_r_d]

It's simple- haggle with the sales man on price, tell em you can pay today, get the printed quote, and tell him you will be back in half an hour with a bank cheque.



Present the quote to the bank and they are more than happy to issue you a cheque.
Besides I wouldnt be seen dead walking around with 10k or more in pocket these days.

You got a cheaper price cos they thought your paying cash there and then, and your safe! :P

[Taxman]

XRQTOR is spot on the whole thing is administered by the Cash Transaction Reporting Authority (CTRA). They set the limits as to what and when cash transactions have to be reported. If the bank etc are concerned that it could be a suspicious transaction they can and do report transactions as low as $5,000. The bank is never going to tell you that they have reported you because they don't want to lose a customer.

The ATO can take several years to follow up on a suspected tax evasion - one would be amazed to find exactly how far they go into a persons background before you even know you are being audited. If they can prove fraud and evasion (as simple as not disclosing some cash income) then there is no statute of limitations as to how far they can go back when looking at your affairs. Unfortunately for Joe Average there is a section in the Tax Act called "Onus of Proof" basically the ATO doesn't have to prove a thing, you as the taxpayer not only have to prove everything in your tax return but also what is the correct figure. Guesstimates don't hold water.

Your only hope is that they have too many reports to follow up and you can escape between the cracks - but don't hold your breath.