Monday, May 9, 2011

Harvard Business School & The (Irish) Department of Social Protection

I recently read how students that were accepted to Harvard Business School emptied out their bank accounts, by either transferring the money to their parents or by buying luxury cars. They legitimately did so to qualify for financial aid.

I then got to thinking about a proposal by the Irish Department of Social Protection that would require motor tax applicants (car buyers) to provide their PPS number so that they could cross-reference this number against those that are in receipt of social welfare payments.

Is there a major scam going on whereby those applying for State benefits empty out savings accounts or transfer assets to family members in order to qualify for State financial assistance here in Ireland? Could it explain some of the upsurge in new car registrations?

Think about it. You have €30,000 in savings but you wont ‘qualify’ for full/partial State Benefits because you hold this asset. If you blow it on a luxury car (not deemed an asset) you could get the State to fund, or partly fund, your penchant for a nice car.

How sweet is that? Your taxes paying for your neighbours new car.

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