Tax Fraud Essay
may not be involved in the activities or is actually involved in the activities themselves. An example of this assistance is when the person helps procures materials that are smuggled and taxes have not been paid on them. This could happen when the raw materials used are imported, or are stolen.
Fraudulent bonds, permits and entries Bonds are like insurance. These are promises or declarations that in case of non-performance the bond shall be taken by the beneficiaries. In the tax of tax fraud the bond referred to here are actually non-existent and are never enforceable in the tax authorities decide to exercise the right to take the bond such as failure to pay an installment on a tax deficiency or tax return. Another criminal offense is the declaration that there are already permits that the taxpayer has procured from the local government and the cost of such permits is deducted in the income tax return as an …show more content…
Removal or concealment with intent to defraud Removal or concealment is another act to defraud. This happens when the taxpayer does not declare in full all the sources of revenues that are taxable. This is an act of under declaration of revenues. One example of this act is the non-declaration of a short term contract where the taxpayer receives a fee for the services. When this fee is not declared among the revenues in the return then there is in effect concealment with intent to defraud. An example of this act is cases where the taxpayer goes abroad in order to do a contract of services as a professional and receives a fee for the services. When the fee is not included among the taxable revenues then there is concealment of the revenue. Another example is when the taxpayer sales a piece of property and realizes a gain in the sale but the taxpayer does not declare the true amount of the selling price. Thus there is concealment.
Compromises and closing
Fraudulent bonds, permits and entries Bonds are like insurance. These are promises or declarations that in case of non-performance the bond shall be taken by the beneficiaries. In the tax of tax fraud the bond referred to here are actually non-existent and are never enforceable in the tax authorities decide to exercise the right to take the bond such as failure to pay an installment on a tax deficiency or tax return. Another criminal offense is the declaration that there are already permits that the taxpayer has procured from the local government and the cost of such permits is deducted in the income tax return as an …show more content…
Removal or concealment with intent to defraud Removal or concealment is another act to defraud. This happens when the taxpayer does not declare in full all the sources of revenues that are taxable. This is an act of under declaration of revenues. One example of this act is the non-declaration of a short term contract where the taxpayer receives a fee for the services. When this fee is not declared among the revenues in the return then there is in effect concealment with intent to defraud. An example of this act is cases where the taxpayer goes abroad in order to do a contract of services as a professional and receives a fee for the services. When the fee is not included among the taxable revenues then there is concealment of the revenue. Another example is when the taxpayer sales a piece of property and realizes a gain in the sale but the taxpayer does not declare the true amount of the selling price. Thus there is concealment.
Compromises and closing