How Do I Avoid Going to Prison for my Brother?
Scott,
For twenty years, my brother has asked me to buy gold for him from the Perth Mint. He lives overseas and mistrusts banks, governments, and anyone who enjoys paperwork. So I bought gold for him. Three thousand here. Six thousand there. Over time, this turned into around $100k of gold in my garage. Gold prices are now up, and suddenly my brother wants to sell.
Technically it's his gold and his money, but legally it looks like mine. The Perth Mint receipts are in my name and the gold has been living rent-free next to my lawn mower for decades. When I investigate selling it, I discover capital gains tax and AUSTRAC reporting. Neither appeal to me as a regular mum with zero interest in explaining myself to government departments.
My brother, unfazed, proposes a solution after consulting ChatGPT: Post the gold in $10k parcels to Ainslie Bullion, include a Binance Bitcoin QR code, he gets paid in Bitcoin. Presto, no tax, no problems. I would prefer not to feature in a tax audit or a future true-crime podcast titled "The Garage Bullion Affair." My brother is not a criminal, but he thinks he's very clever.
What's the least painful solution?
Lisa
Hi Lisa,
I’m a brother, and I do annoying things to my big sister … yet the most annoying thing I’ve stored in her garage is an old spa bath.
Yet your bro’s plan has more leaks than my hot tub ever had. It opens you up to the risk of an Australian Taxation Office audit or a call from the coppers.
Here are three leak that I can sees:
First, deliberately splitting a large sale into $10,000 parcels to avoid AUSTRAC reporting is called structuring, and it’s a crime.
Second, for any bullion sale over $5,000, dealers are legally required to verify your ID.
Third, Bitcoin isn’t invisible. The ATO tracks crypto exchanges, and the digital trail is as permanent as a bank transfer.
What would I do?
I’d get a statutory declaration from your brother stating he’s the beneficial owner and you were only acting as his agent. Then sell the gold through a reputable dealer. Show the declaration to your accountant and let them work out who pays the tax.
Your brother can ChatGPT his way to the clink, but you don’t want any skeletons in your garage.