MAIN Home Legal Guide Tax Evasion
As sure as
the sun rises in the east, almost everybody dislikes paying taxes.
People and companies who resort to tax evasion do it for a variety of reasons.
Some people believe that taxes are too high; others refuse to
pay taxes on the grounds that they do not support their government;
or that government taxes should not exist at all.
Of course, simple greed is likely the most popular reason that people and
companies engage in tax evasion.
Tax evasion, when done on a grand scale, usually makes for breathtaking reading
and scandalous headlines. But the most typical occurrence of tax
evasion is when people attempt some sort of unlawful tax avoidance
scheme (like charitable contributions or home
office deductions) to reduce the amount of taxes they pay.
It can often
be a fine line between legally and illegally avoiding taxes, but
if the government suspects tax evasion they have a powerful tool
in their arsenal to combat it: the dreaded tax
audit. That is, a detailed examination of their tax filing.
Those who are found guilty of some form of tax evasion can face
fines or even imprisonment, depending on how serious the transgression
Sometimes, corrupt government officials will simply overlook "shady"
accounting practices in return for a bribe from corporations or
from smaller businesses looking to increase their profits. In
the high stakes world of big business, sometimes it can be difficult
to catch corporate tax evaders, since tax lawyers and accountants
can be very good at hiding taxable income in offshore accounts
or other masking techniques.
The severity of punishment for tax evasion varies by country, but in the United
States it is a criminal act, and if caught, tax evaders will likely
face criminal investigations and proceedings.
Tax evasion is no small problem, and it has been estimated that
for the year of 2007 the United States government was given roughly
$350 billion less than it was owed by American taxpayers.
also see in Taxes -> IRS
Tax Forms | How
to File an IRS Tax Extension
More about tax evasion around the Web:
Fraud Alerts - IRS guide to tax schemes and abuses including money laundering,
corporate tax fraud, frivolous tax arguments by non-filers, employment
tax enforcement, how to choose an ethical tax preparer and related
avoidance and tax evasion - From Wikipedia with information
on US and UK enforcement laws and regulations with related topics
including civil and criminal penalties, tax shelters, customs
duty avoidance, and tax protests and resistance.
Tax Scandals - Photos and profiles of corporate execs, entertainers and crime
bosses accused or convicted on tax evasion or tax fraud charges.
information provided on these pages is intended as reference
only and does not constitute professional legal advice.