The bank notifies the Treasury every time you do this with your money
The use of certain bills raises a lot of suspicion. The Tax Agency exercises a certain amount of control in order to mainly avoid the underground economy. In fact, when a bank receives them, it has the obligation to notify it.
500 euro notes have been scrutinized for some time now. Even if they were hidden for many years, it seems that they are now resurfacing and circulating normally. In any case, financial institutions are pushing them aside.
When they reach the bank, they are withdrawn from circulation and "have already stopped being issued" by the central banks. This is explained by the president of the Gestha union of tax technicians, Carlos Cruzado. He is a little surprised by what is happening with the 200 euros.
They were being used as replacements for the 500, but he does not find "an explanation for the withdrawal data from the 200 note". Paper currency with such a high value has always been associated with black money and the realm of crime.
Why are there starting to be so many 500 euro notes?
No one expected the 500 and 200 euro notes to emerge in the volumes they are doing lately. This causes some concern among tax fraud teams. Until now it was hidden, but now it is starting to be used.
It is worth mentioning that the tax regulations reduce cash payments to 1000 euros. It would be extended up to 10,000 for foreigners and as long as it is for activities unrelated to the business field. If they do not comply with these requirements, fines could reach up to 25% of the value of the transaction.
They suspect that the circulation channels of the hidden money have been reactivated. Especially after the proliferation of other payment methods such as credit cards or electronic transactions, which are more easily traceable by the Treasury.
Black money is again widely used
"The 'B' money is handled a lot," legal sources told the newspaper public. They maintain that people "accept it because 'A' is under a lot of pressure". When it is forced to reduce prices "by means of taxes the estraperlo arises", they add.
They appreciate how some of the circuits through which these high-value paper coins moved are being reactivated. They explain that "the 'B' is used to square operations, either up or down. This indicates that a part of the market is separating from the official format».
Other factors that lead to withdrawing the 500 and 200 euro notes
In any case, they detect that there are other reasons why they are bringing the 500 euro notes to the market. First of all, they blame it on the fall of many companies. Their owners are obliged to resort to hidden reserves.
They use them for household expenses, but also to maintain the activity of their businesses. Many times they are given to this because of the delays in accessing loans.
In addition, this is joined by the change in the format of the banknotes, from 5 euros to 200. In a matter of more than a year, the European Central Bank plans to face a redesign. This threatens to put much of the black money that remains hidden out of circulation.
Treasury sources are surprised by the high level of spending on high-denomination bills. Until now, this paper currency was hidden, "out of circulation", but "now they come out in small quantities, one at a time". The record for 500 euro notes was reached in July 2007, because at the height of the real estate bubble their combined value reached 56,955 million euros.