Tax Fraud Cases

Tax avoidance has become a massive topic of discussion over the past few years, given the current global economic conditions and the cuts to the public sector by the government as a result. This led to increased anger from the public who perceive avoidance by many of the country’s wealthiest people in a time of austerity as greed. Perhaps the most notable demonstration of this anger can be seen in the actions of the group UK Uncut, who for the past year have been organising protests at shops owned by retail tycoon Philip Green who, as the poster boy for tax avoidance, paid a £1.2 billion dividend to his Monaco-resident wife.

This scenario demonstrates the motive to purchase personal expenses and hide small revenues and this ultimately results in a higher expense value, gaining a favourable tax return. Examples within the scenario were buying a sports car, or paying for a trip to Hawaii which are clear violations of the Business Entity Concept. This principles states that a business must be considered a separate entity from the person, and all of its financial matters should be recorded separately from one’s own. This act is seen as an unacceptable behaviour since the business is cheating the government, and keeping the money that could have been used to better the community in addition to violating common accounting standards.

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.

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,

Even with all these reasons on why corporate tax evasions are bad, there are still some arguments saying that the current tax system is fine as it is. These arguments usually derive from the fear of change. People are scared of the actions that these companies will take in order to counter act the new law set by the government.

In business, you can avoid taxes by investing, so why are the Panama Papers so Important?. A massive leak from Panama city-based law firm Mossack Fonseca has exposed a vast network of companies that hide financial affairs of corporations politicians, oligarch and notorious criminals, showing us just how unequal the world is. Over 11 million documents and over 200,000 fake companies have been leaked. Many political leaders have been named to have off-shore world, the current prime minster of Iceland, the President of Ukraine and David Camerons father has been associated with the Morssack Fonseca firm. Although not illegal this is quite embarrassing for Camerons as he campaigns against tax havens and yet his father is linked to off-shore accounts

After the creation of the income tax in 1913, many wealthy individuals lowered their income tax by transferring their large revenues to holding companies. While this was not illegal at the time, people such as Pierre du Pont, Thomas Lamont, and Alfred Sloan had all used this device in order to pay less taxes. I Alfred Sloan’s case, Zunz says that he “invested in a yacht and incorporated it as a holding company”. After being exposed, Sloan reportedly said that he had not intended to evade taxes, but only the cost of operating the boat. This generated a lot of publicity, which in turn made Sloan attempt to rebuild his reputation by donating more in the latter

In America, there has recently been a great deal of talk about tax policies which favor the rich and unfairly burden the poor. However, the benefits given to corporations make the advantages extended to individuals pale by comparison. By 'routing' profits through Bermuda, Puerto Rico and other notable tax havens, esteemed corporations like Microsoft, Google, and Apple have been effectively able to skirt the 35% corporate tax in America. Even for the profits recorded as existing in America, "through tax breaks and loopholes," the average amount these companies will pay upon their earnings is a mere 17.3% (The price isn't right, 2013, The Economist). Apple is particularly crafty in its ability to dodge state corporate taxes. Although the company is based in California, its official location is in Reno, Nevada, which has no state corporate tax rate, in contrast to California's 8.84 percent (Report: Apple legally avoids billions in taxes, 2012,CBS News).

Outcry over the revelations indicated in the Panama and Paradise Papers demonstrates the significant public concern with the usage of international tax havens. While tax arbitrage is often legal, many stakeholders have serious ethical and legal reservations about a firm’s tax avoidant behaviors. Investors are becoming increasingly aware of the regulatory and reputational risks encountered in secretive low tax jurisdictions. Furthermore, stockholders and creditors are also troubled that firms engaging in tax avoidance are distracted from other activities that would enhance firm value.

The documentary covers the investigation of major using tax haven secrets of ultra-rich exposed to keep from paying the taxes. Many of the stories in the documentary focus on politicians, multinationals, celebrities, and high-net-worth individuals using offshore trusts, foundations, and shell companies accounts to keep from paying taxes in the United States.

By not reporting these cash transactions, tax fraud is being committed. The tax preparer should talk to his client about the consequences of not reporting the cash transactions. Civil and criminal penalties would need to be addressed. Another issue is that the tax preparer’s professional standards would be also questioned. The tax preparer should carefully consider terminating the client’s relationship if omission of information is suspected.

As for the huge corporations that sometimes use elaborate and sophisticated tax avoidance techniques, there are two sides to this

The investigative long-running television documentary Panorama drawing on the ‘current affairs’ has gained considerable attention and credibility from viewers for a long time. As one episode of this factual television programme, ‘The Bank of Tax Cheats’ inherits the impartiality of this popular TV series and conducts an investigation around the issue of tax evasion, trying to find out how the Britain’s biggest bank HSBC has assisted its wealthiest clients to avoid paying tax. This essay will produce a detailed analysis of this particular case, focusing on how it structures and presents the real event in order to pursue the journalistic objectives and truthfulness.

This paper will discuss the topic of tax fraud. We will begin by introducing the basic concepts of tax fraud. Secondly, this paper will also delve into some of the laws that have been passed as punishment for those parties that decide to commit tax fraud. We will also highlight some of the more current examples of tax fraud that have been committed and the details that lead to the perpetrators being caught. Lastly we will discuss the role that criminal investigators have in the realm of tax fraud.

What is the most common problem in the country we live in? Tax fraud. It is said to be about 80% of the world is doing it. Every country in the world needs taxes from the people to keep the economy running well. That is why we pay for everything in the world, even the parking lot we park our cars when going to the mall. When we pay taxes it allows the country to not have depth, pay the military, be used for government purposes, and also get back to us too. What is tax fraud? It is when someone pays too little or claiming they make less than what they actually make. Tax fraud can also mean that someone steals your identity and your social security to steal your taxes. Why do people often do tax fraud? People do it to gain easy money without having to work hard for it. Study shows that in 2006 an estimated number of $450 billion taxes were not paid. This comes to show that the majority of the US population is refusing to pay taxes. People sometimes think that when we pay taxes, the government gets paid and spend it for their personal use. Think about how the country work. Paying taxes can benefit us in many ways. We need free education and free health care but don’t want to pay taxes. How can the government continue with this program if we do not contribute? What about when you are getting robbed or when there is a fire, who do you call? Of course, we all call 911. If we don’t pay taxes or commit tax fraud, how are we going to keep these public services going forward? The