When does money transfer via paypal or wire need an explanation, reporting by recipient or sender or banks, questioning, tax? Do locations matter? Depositing a few thousands need something, but not sure about wire and paypal transfers. Is it considered income if it is sent by family members or friends, or business partners? Feel free to give info/advice even if it is not 100 % correct.
I would say that you only have to declare the money to the taxation department if it is earnings from a business. If your receive cash from friends/family and is not related to business then you should be ok not to declare it as far as I am aware.. I am in Australia so tax laws may be different in your country. But in saying that PayPal does offer personal accounts & business/premier accounts. You are allowed to have one personal and one business/premier account as far as I am aware so you could get a personal account and only use it for personal transactions not business related.. People have tried to run business's via personal accounts and hide it from PayPal which is not a good idea as they will simply freeze your account. Hope this helps in some way... Drew.