Corporate and Personal Income Tax Fraud

The Accounting Professional and Ethical Standards Board (APESB) is a characterised mark of accountancy profession that plays an important role to the accounting employees, helping them to understand and comply with their responsibilities recognised by the fundamental principles of ethics. Nevertheless, there has been a massive growth of financial employees acting unethical behaviour, resulting in an ongoing liability for the business organisation. Many entities particularly in Australia have been investigated for stimulating tax evasion such as the ‘Tax Fraud case of Carl William Wheeler’ in year 2008-2009 which was accused for using tax havens in UK for evading tax obligations. However, there are points of view within the structure of professional

However, the companies only have to pay the U.S. tax for foreign revenues once they bring the profits back to the United States. As a result of these current tax laws, U.S. companies that seek to avoid high corporate tax rates hold their foreign earned profits overseas. “It just makes no sense to pay a substantial tax on it,” said Joseph Kennedy, a senior fellow at the Information Technology and Innovation Foundation (Rubin, R.). It is far too easy for an IT corporation to create a patent in a foreign country and direct revenue to a corporation within that country, thus avoiding the much higher U.S. tax rates. According to Joint Committee on Taxation estimates, the lost revenue is increasing over time as corporations find even more creative ways to make their U.S. profits look like offshore income (Richards, K., & Craig, J.). As result, multinational American corporations have as much as $2 trillion held in overseas subsidiaries and if brought into the United States with the current tax laws, the federal government could benefit by nearly $50 billion per year.

Mr. and Ms. Synder stated on 01/25/2016, H and R Block attempted to electronically file their joint income taxes. H and R received a reject notice that their taxes were not accepted by the IRS. H and R Block emailed them the reject notice it received from the IRS.

However, the introduction of such a law becomes increasingly difficult when the companies being questioned are some of the largest and wealthiest in the world. In order to truly understand the stature of these companies, one would need to look into some of the statistics regarding them. Remarkably, according to Al Jazeera America “the largest 500 U.S. companies would owe an estimated $620 billion in U.S. taxes” if they had to declare all their overseas stockpiles, of around $2.1 trillion (“Al Jazeera America”). In addition, it found that “three-quarters of the 500 biggest companies utilize tax havens”. The top three offenders included Apple, General Electric and Microsoft. In many cases according to the report, the money is not being utilized to improve foreign economies. By this they mean to say that, U.S. businesses were not using their overseas profit to build factories and employ individuals. Instead, the overseas profit was a result of accounting tricks purposely implemented to benefit the business alone. To put all of this in perspective, the United States is losing billions of dollars to foreign economies. These taxes are being introduced into countries such as Ireland and Luxembourg. In other words the money that should be invested in the United States of America on public services, is being

Tax return identity theft grew to more than 2 million cases in 2011 from 51,000 in 2008. Tax return identity theft has resulted into $5.2 billion in false refunds. The previously mentioned statistics have grown, as expected, exponentially.

Congress has discovered that the Dodd–Frank Wall Street Reform and Consumer Protection Act of 2010 that created the Consumer Financial Protection Bureau or CFPB is fatally flawed and dangerous to traditional banking interests, politicians and lenders. The Huffington Post reports that ther bureau has become everybody's favorite target for reform or abolishment, and these stakeholders include people from opposite asides of the political specturm like the American Bankers Association and banking-system critic Rep. Spencer Bachus (R-Alaska). The CFPB, which was expected to target payday and predatory lenders,

There where accounts that had the same debit and credit amounts just a few days apart. At the end of the last quarter in 2009, there were 22 sales recorded. At the end of the previous quarters there was not a high amount of sales which leads one to think that the sales were booked at the end of the year to make the company meet their goal. There was also a high number of invoices with no bill of landing. With a high number of no bill of landings, false billing is presumed. With a bill of landing of a lesser weigh than that which was invoiced, leads to the full order not being shipped, and over charging of the customer or that special arrangements have been made with the customer to receive a discount for early billing. There was also 5 times where invoices where invoiced before they were shipped. This leds to the fact that sales where most likely

Caterpillar, Inc is a U.S. based company that develops and manufactures machinery, engines, and financial products. The firm’s net worth is more than 74 billion dollars. The company’s headquarters is currently located in Peoria, Illinois. Jim Umpleby was recently elected as the Chief Executive Officer of Caterpillar, Inc. in early 2017. Previously, Jim had been serving as the company’s Vice president from 2010 to 2013 and as group president from 2013 to 2016. During March of 2017, the company was being investigated by the federal government for tax fraud and its offshore tax practices. According to an article in the New York Times, for over thirteen years the firm had moved their taxable income into a Swiss Bank to avoid any tax responsibilities

On April 2016, the WSJ detailed on the article “The “Panama Papers” Scandal” the wrongdoing of a Panamanian Law Firm, Mossack Fonseca, which specialized on offshores holding companies. These companies were protecting “their clients by hiding wealth or suspicious transactions in tax havens.” Public figures, executives and celebrities were some of the clients of those companies, reported the WSJ. This article also reports that “more than 70 Swiss banks confessed to the U.S. that they encouraged tax evasion, many said … using Panamanian corporations.” In other words, the Panama Papers bring to light the possibility of tax evasion by many taxpayers who deposit funds illegally into those companies without a true business purpose. As a result, “the U.S Justice Department says it is reviewing the documents to see if they contain evidence of corruption that could be prosecuted,” stated the

Many organizations have been in the news over the past few years due to accounting ethical breaches that have affected their customers, employees, and the general public. I searched the Internet to locate a story in the news that depicts an accounting ethical breach. I selected Krispy Kreme. I enjoy their hot donuts and was curious to learn more about how they played with the numbers. For some reason I always want to dig into the trickery behind the manipulation of financial statements.

China’s current tax rate for foreign corporations is 25 percent, before the tax rate for foreign

KPMG was one of the biggest accounting firms in the 90’s that with a lucrative end, would serve wealthy companies using forged revenues in order to avoid taxes. The accountants that worked for the firm were expected to meet certain quotas. Consequently, instead of trying to run an honest business they were trying to maximize the sales using all kinds of dishonest marketing approaches. KPMG employees used foreign banks as well as bogus law firm statements to preserve a legitimate business running. This accounting firm manipulated financial data of clients, costing the internal revenue service over 2.5 billion in lost tax revenue

The video “Cooking the Books” discussed the ZZZZ Best case of fraud, it tells how and why fraud was perpetrated by Barry Minkow and why it was undetected for so long. According to the video, ZZZZ Best was founded by Barry Minkow in 1982; when he was sixteen years old, it started as a carpet cleaning company. But, due to high competition in the industry, low entry barriers, and bad internal control, this young entrepreneur started to have cash flow problems, thus creating a shortage of working capital. As a result of the financial pressure, he started to commit fraud by creating false accounts receivable and sales, false documents (using photocopies of real

Financial statement fraud is any intentional or grossly negligent violation of generally accounting principles (GAAP) that is undisclosed and materially effects any financial statement. Fraud can take many forms, including hiding both bad and god news. Research shows that financial statement fraud us relatively more likely to occur in companies with assets of less than $100 million, with earnings problems, and with loose governance structures (Hopwood, Leiner, & Young, 2011).

Studies have estimated around seventy percent of the intellectual property theft is related to China. The head of the National Security Agency told a Senate panel that China’s government