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Tax Evasion
Written by Administrator Friday, 15 August 2008 17:03 |
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Tax evasion is defined as efforts trusts, individuals, firms, and other entities make in order to not pay any taxes; efforts done illegally. Some of the people who are trying their best not to pay any taxes believe they have found interpretations of the law that show that they do not have to have to be taxed. These people are sometimes called tax protestors. An unsuccessful tax protestor attempts to evade tax openly. Tax evasion generally involves taxpayers purposely misrepresenting or hiding the true nature of their assets to the Internal Revenue Service to lower the liability they should be taxed on, and includes dishonest tax reporting, such as claiming to make less than they really did or overstating the deductions entitled. In the United States, people who earn income illegally by ways such as theft, gambling, and drug trafficking, are required to report their unlawful earnings as income when they file their yearly tax returns. Unfortunately the majority of the time they do not because if they did then it could be used as an admission of their guilt. If a person who is guilty of tax evasion and they try to report their illegal income as coming from a legitimate source, then they might be charged with money laundering. The level of tax evasion depends on several factors, such as fiscal equation and the efficiency of the tax administration. Sometimes the control of evasion is made difficult by the corruption of tax officials. These corrupt tax administrators cooperate with those tax payers who are attempting to commit tax evasion. When they detect that someone is committing tax evasion, they fail to report it in return for a bribe. In almost all countries tax evasion is a serious crime, and those who are guilty of it are subjected to fines and possible imprisonment. In the United States, anyone who attempts in any way to commit tax evasion is guilty of a felony, and if convicted, will be fined not more than $100,000, or imprisonment not more than 5 years, or both. The fine increases to $500,000 if it is a corporation who committed the evasion. The individual or corporation who committed the evasion could also have to forfeit assets in order to pay back the amount they truly owe. All citizens in the United States have a right to reduce the amount of taxes they have to pay as long as they do so by legal means.
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| Last Updated ( Monday, 18 August 2008 04:03 ) | |
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